Evening star., 1935-10-08

values that has been established and
can be depended upon. Both the
money lender and the home buyer
from now on are neglecting their own
interests in any real estate trans
action II o Federal Housing Admins
tration appraisal isn't the basis upon
which 1t rests.
All this has been accomplished with
the real cooperation and assistance
Of that great body Of real estate deal
ers who are engaged In an honorable
and highly essential business. The
Federal Housing Administration fully
recognizes that every one in the busi-
ness of building, selling or financing
homes has q right to . legitimate
profit for his part in the transaction.
It Is only exorbitant and unwar-
ranted prices and practices, distort-
Ing true facts, that would be ex-
posed by the Federal Housing Admin
istration appraisal, such as would be
inimical to the legitimate interests
of the real estate operator. as well as
to the home buyer.
The Federal Housing Administra-
ton. therefore, offers o service to
home owners, to mortgage lenders, and
to real estate dealers, that has never
before existed, and which only the
untrustworthy need fear or avoid.
The third" innovation consisted IN
the establishment of the mutual mort
gage insurance, or Federal Housing
Administration insurance. The bor-
rover pays q small premium Of one
half of / per cent in addition to the
interest charge. These accumulated
payments become fund which the
Government guarantees. so that II
through any unforeseen mischance,
the borrower Is unable to make the
payments as agreed, the maker Of the
loan Is fully protected by the insur-
ance.
This In q nutshell Is how the Fed
eral Housing Administration has re-
constructed the home mortgage busi-
ness.
Business Stimulated.
Under its stimulation new homes are
being bought by people who have been
cured Of the speculative mania Of the
late 2os, by people who have acquired
wisdom through the depressing un-
certainties Of the early sos.
They are buying homes within their
means and paying their money stead
ily-not spasmodically-in fees, re-
newal costs or other charges. They
are consistently making month-by-
month investment that is paying divi-
dends in home ownership. They will
own their homes automatically when
the time comes, and, as I have said
before, the monthly drain Is usually
less than the rent they formerly paid.
Now that the Federal Housing Ad-
ministration plan, the single mort
gage system" has made home owner
ship so simple, consider for a moment
what a modern new home gives you.
or for that matter an old home that
has been modernized under the Fed
eral Housing plan-and any banker
will explain this to you.
Few appreciate or realize the many
mechanical and modern inventions
that have been developed to relieve
modern housekeeping Of its many
arduous and strength-consuming
tasks. We all know Of the almost revo-
lutionary changes that have taken
place in the construction Of automo-
biles during the past 10 years. Almost
precisely this same advancement has
occurred in the home building indus
try.
Today for four, five or six thousand
dollars a new home will contain con-
veniences that even q Rockefeller
could not have bought at any price
several years ago.
So 60 to see one of these new and
modern homes. Everything from the
bath room to the kitchen will astound
you in the way Of modern inventions
and conveniences that take the drudg-
cry out of housekeeping. and at prices
that are simply amazing compared to
the standards of a decade ago.
Progress in England.
During the past few years of this
terrible depression almost no new
homes have been built in America.
The figure Is trifling-less than 50,-
600. It might interest you to know
that in England new homes at the
rate Of approximately 25o,0o0 per an
mum have been built during the last
few years.
The Federal Housing Administra-
ton believes In home ownership.
It is meant to convert renters into