Evening star., 1935-12-21
OPPORTUNITY SEEN
BY PRIVATE FIRMS.
Help to H. 0. 1. c. in Divest'
ing Self of Real Estate
Is Advocated.

That savings. building and loan as
sociations can play leading part
in helping the H. o. L. G. divest
itself Of the real estate accumulating
from its Tightening foreclosure policy
was pointed out today by L. w. Pel!ett,
president of the United States Build
ing and Loan League. Referring to
a resolution adopted by the Executive
Committee Of the league at its recent
convention, the titular head OF the
Sc, 500, ,000, 900 thrift and home -financ-
ing business said families wishing to
acquire the houses now held by the
relief organization should normally
and logically finance the purchase
through their community savings and
loan associations.
A recent statement from Washing
ton, based on an article in the official
publication Of the Federal Home Loan
Bank Board, said that as the emergency
passes foreclosures by the corporation
must eventually increase. Already
more than $500 are in process.
Government Policy.
Since the avowed policy of the Gov
ernment is to return the responsibility
for home financing to the private busi-
ness institutions, there is no reason
why new purchasers of the properties
on which the corporation assumed
the mortgage for purposes Of relieving
the old borrower should finance the
purchase through the corporations
funds, he pointed out. The use OF
taxpayers money In facilitating the
purchase of homes by new owners Is
not part 'of the original intent OF the
program and certainly as long as
private home financing agencies are
willing to help the corporation retire
from its responsibilities on these fore
closed properties the new homecoming
undertakings should be financed by
the established institutions, in the
opinion OF the national organization.
Naturally nobody can expect the
ties entirely to cash buyers. since this
would be an unprecedented develop
ment in the history Of American home
ownership" said Pellet. "On the
other hand it certainly behooves the
Government to see that the financing
Is done on the long-term installment
plan which will go further than any
thing else to assure that the new title
holders to the property remain in pos
session. The savings, building and
loan associations are Offering just that
type of financing, a program which
has been theirs for los years.
Security for Loans.
There will be many properties in
| the list which the institutions, re-
sponsible to savers whose funds they
use, cannot be expescted to take as
security for loans because some of the
homes will not last through the life
time of a long-term loan. But GER
tainly a major part Of the transfer
back to private hands can be accom-
plished through the aid Of building and
| loan mortgages"
The leagues resolution at Cincin-
natl instructed the officers to provide
the names of available building and
loan associations in each community
to the proper officials of the Home
Owners Loan Corp. so that the plan
might speedily be worked out.
Pointing out that the associations
expect to make upward of billion
dollars In home loans next year, Pei
| lett said that their progress in financ-
| ing new construction and the sale Of
newly built homes would be consider
ably aided by cooperation in remov-
ing the H. o. L. c. properties from
the market. since the absorption OF
any salable houses increases the pos
sibility of new construction.