Evening star., 1935-02-19

erty at once to the Federal Housing
Administration, which can hold 1t as
long as necessary In order to avoid
demoralizing the real estate market
by q precipitate sale. A further ad-
vantage of the utmost Importance to
many institutions Is that In an In
sured mortgage you will have a
standardized asset, which should be
readily marketable. 1t will be based
upon the same sort Of scientific ap-
praisal and all its terms and condt-
tionS will be substantially similar, no
matter where the mortgaged property
Is located. When the national mort
gage associations are organized under
the terms Of title III OF our enabling
act-and I can tell you positively that
they will be organized-a bank or
other institutions holding an insured
mortgage will have an asset which Is
potentially as liquid as any paper in
its portfolio.
I shall not have time to review all
the reasons why the financial institu-
tions of the country should hasten
to extend their cooperation to the
insured mortgage plan. Let me men
tion one or two more, however. Many
financial institutions are gorged with
mortgages which are past due. or
otherwise in effect frozen. They
should get together at once with their
borrowers and rewrite the mortgages,
where possible, In form eligible for
insurance. Thus the present de-
morali5ation' in the residential mort
gage market can be cured, or at least
greatly ameliorated. Then new con-
struction can start, on q scale large
enough to meet the growing need for
new housing. Many financial institu-
tions also are stuffed with money to
lend. Let them embark on the in
sured mortgage program with perfect
confidence, both as to the safety Of
their loans and as to the liquidity, in
case of need, or their mortgages.
Insurance of Mortgages.
Let me add a few words before
close concerning one more phase Of
our program-the insurance Of mort
cages on low-cost housing projects.
Leaving out all technical details, the
essence Of the matter Is this: Any
public authority or private limited
dividend company may obtain up to
$10,000,0o0 against an insured mort
gage on such an undertaking. II 1t
meets the standards we have laid
down. Several projects Of this kind
are even now in process Of negotiation
and two or three are about ready for
the dirt to start to fly. If you are
considering such o development, or
know of some one who is, I urge you
to lose no time in communicating
with the Federal Housing Administra-
tion, either at our local Offices or here
in Washington.
In a moment now I shall have to
end these remarks. I have given you
only an incomplete picture of our i'm
mense program. Let me urge you,
therefore, to study 1t seriously, in the
bulletins and circulars and other
literature which We shall be happy
to supply you. Discuss the insured
mortgage plan with your friends and
especially with your bankers or the
managers Of whatever financial insti-
tutions you deal with. And don't for
get for a moment the opportunity and
the challenge presented by the
moderniZation phase Of our under
taking. Let us consider all phases as
the component parts of one vast pro-
gram, looking to the better housing
Of the American people and the re-
turn Of real and lasting prosperity.