Evening star., 1935-01-26
BUILDING REVIVAL
SEEN BY MOFFETT
F. H. A. Head Says Federal
Aid Will Supply Need
ed Impetus.

The long-range program Of the
Federal Housing Administration is
expected to clear the way within the
present year for such revival Of
building construction as this country
has rarely seen," in the opinion of
Housing Administrator James A. Moi
fett.
Emphasizing that the Federal
Housing Administration Is developing
genuine home mortgage financing
system to supplant the chaos which
has prevailed for many years. Moffett
said in recent speech:
Under title II Of the national
housing act, we have the means to
bring about a standardized procedure
for home mortgage lending through
the operation of our plan for the mu-
tual insurance of mortgages meeting
certain specified terms and conditions.
This insurance, plus the inherent ad-
vantages Of the type Of mortgage
eligible for it, should be sufficient to
make these mortgages the standard
practice all over the country.
Nation wide Market.
This mortgage Standardization, it
was stated, will provide the basic con-
ditions for a Nationwide market for
such mortgages. This market would
be fully realized in practice, it was
pointed out, by the establishment OF
national mortgage associations with
a minimum capital of S5,000,0 ,000
uyt1tnh 70
sales of these mortgages.
THE advantages of the type oi
mortgage which we propose to make
the standard practice all over the
country" Mr.. Moffett continued, "ars
so evident that I need not discuss
them at length. Merely to mention
getting rid of the uncertainty ano
expense Incident to the renewal Of
short-term mortgages is enough tc
chnch the argument in favor of the
long-term amortized instrument. 4
But an advantage Of even greater
importance Is to be derived from
eliminating the practice of secondary
financing, with its exorbitant costs
in the form OF discounts and other
rake-offs."
Mr.. Moffett discussed the Federal
housing facilities for working out
standard practices for appraisals as
well as for economic and technical
research. He said that there are 81
underwriting Offices in the principal
cities Of the country with each Office
fully equipped to make appraisals and
Investigations of all the elements in
volved in insuring mortgages. He said
that more than 2,700 Offices of finan-
cial institutions lover 1890 institu-
tons and over 1,470 branches) have
already been approved as mortgages
(lenders), with additional applications
for approval coming in at the rate OF
so or so day. He added that apph-
cations for insurance Of mortgages
also are beginning to arrive in en-
couraging numbers.
Making Appraisals.
"AppraiSals are being made" Mr.
Moffett said, "and we can say even
this early in the game that We are
positively doing business"
THE first thing to be done" he
added, "is to rehabilitate a large por-
ton of the $21, ,OO0, 100000 worth OF
home mortgages now held by financial
institutions. AS and when thi;
is accomplished. the latent demand fol
new houses, which is beginning tc
grow acute everywhere, will become
active and new construction will
start. Very soon it may be expected
to reach a very large volume, which
should be maintained for many years
to come"