The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1935-06-20
AZ Model Homes in 81 Towns
Started Saturday With
National Program
BY Fred SchilpIin, State Director
Federal Housing Administration,
Minnesota

BY Fred schiIpIin, State Director
Federal Housing Administration,
Minnesota
Last month, I said, as far as Min
nesota is concerned, we would be out
of the depression in 80 days. Today
we are definitely on our way out.
Constantly, more and more of our
Observation-Disclosures mas been re-
stored. Not only are banks again
aggressively reSuming their normal
business of lending money, the only
way in which bank can make
money, but the cautious small invest
to his neighbors, scouting around
for an opportunity to put his idle
money to work.
The other day, a banker in one of
the smaller towns in Minnesota,
brought to our office two applications
for an FILA insured mortgage for the
building of two new homes. l asked
him why his bank was not making
modernization credit loans. He re-
piled, II would be glad to make them
if could get them but since the local
better housing committee has made
it's property to- property canvass it
has loosened up all of the local idle
money. People who have money and
who have been hanging on to it are
just as anxious now to make it earn
something as the bankers are to put
their money to work again. In our
town, for the past seven years not
single house has been built. These
two new construction loans for which
we have applied for insurance are the
first of eight new homes that will be
built in our little town this summer
and for which our bank hopes to be
able to loan the money"
Money is coming out of strong box
es and hiding places and going to
work. The other day business took
me to the office of an automobile
dealer. On the cashiers desk was an
open canvas bag filled with small
the clerk was busily engaged in
counting the money. Where did you
get all the small change" l asked.
He replied, THAT is the cash pay
ment for a new automobile which we
have just sold-sold for real money.
this cash payment" 1t was the
strongest proof l have so far seen
that confidence has been restored.
Today, in Minnesota, the federal
housing administration, under pro-
clamation issued by Governor Floyd
B. Olson, is breaking ground in
better housing day ceremonies in 81
communities for AZ model homes. This
is Minnesota'S contribution to over
3,464 model homes participating in
these nationwide ground breaking
ceremonies. These are only a part of
the thousands of new homes, work
on which has been commenced
throughout the United States since
spring.
A Million a Day
Today, less than ten months since
the Federal Housing administration
went into action under Title II of the
National Housing, it is doing a mil
lion dollars a day mortgage insurance
business. The volume is growing
rapidly.
To carry out the purposes Of the
National Housing Act, a tremendous
administrative task has been involv-
ed. A nationwide new system to
make home financing and home own
ing safe, sound and profitable, has
been established in every state in the
Union with insuring offices in 81
cities. 1t involved the making of
legislative changes to conform with
the act in almost every state. 1t re-
quired the investigation and approval
of thousands Of lending institutions
to make these insured loans. 1t re-
Quired the setting up of technical
mortgage insurance underwriting
STATESMEN who had to be schooled
for the work. The tremendous job It
is undertaking is to build better
homes than have ever been built be-
fore for one million American faml-
lies and to modernize, repair and i'm
prove 16 millions homes that need re-
Mobilization.
Modernization credit loans are
increasing by leaps and bounds in