Evening star., 1935-06-22
CHANGE |NH. Ole.
|SET-UP EXPLAINED
Increase in Bond Limit Is
Considered Adequate
for Needs.

The Federal Home Loan Bank Board
today issued the following statement
to make clear the public significance
Of those sections of the new home
mortgage relief act, signed recently by
President Roosevelt, which affect the
refinancing Of distressed urban home
mortgages by the Home Owners Loan
Corp:
"The most important feature of this
Amending act. as far as the Home
Owners Loan Corp. Is concerned, in
creases the authorized bond issue Of
the H. o. L. c. from $4,000, ,o00, 900 to
3, $50 ,00o,0 900 in order to provide for
applications already fled, and for new
applications which must be filed with
in 80 days after the new act takes
effect, and for other purposes. New
applications will be strictly confined
to home owners who are clearly in
distress and threatened with foreclo-
sure and must be filed by midnight
June 81.
''This increase of $1,750, ,000,0 in
authorization of bonds issued by the
tH. o. L. G. is considered sufficient
both to take care Of the remaining
Eligible cases of home loan distress
which are beyond the scope Of earlier
authorizations and to provide $780,
poe, 900 for direct investment by the
Federal Home Loan Bank Board in
private home financing institutions, or
in bonds, notes or debentures Of the
Federal Home Loan Banks, as author
tied by another section Of the act.
"a second important amendment OF
the new measure emphasizes the Grim
inal sections of earlier legislation by
providing penalties for misrepresenta-
tion and other specific ofienses on the
part Of persons dealing either with
the corporation or with home owners
who have applied for corporation
loans.
Another provision of this act sets
forth that, effective 80 days from en-
actment, no person shall be appointed
or retained as q salaried officer, en-
pioye, agent or attorney in any re-
gional or State office Of the Home
Owners Loan Corp. who is at the
same time an officer or director of
any firm, corporation or association
engaged in lending money on real
estate. The same section prohibits
the appointment or retention by any
state or district office of the corpora
ton. of any person who was not a
bona fide resident of the State served
by such Office for at least one year
immediately preceding the date Of his
appointment.
"Other provisions Of the new act
which are Of public importance are
those which
Broaden the powers Of the corpo-
ration to permit It to make loans on
real estate on which there Is more
than one dwelling, serving not more
than four families, provided that such
real estate include property used Who'll
M by or in part by the owner as his own
home or homestead, and have total
value not exceeding $4,000.
Establish q uniform method by
which the corporation may handle tax
burdens represented by general and
special tax levies In all the States.
Eliminate the provision under
which the corporation has taken over
home mortgages or other liens held
10y institutions which were in liquida-
lion, where the mortgagor was not
necessarily in involuntary default.
Provide that no person shall be
Allowed to act as appraiser for the
corporation If employed by any COM
amy holding loan on the property
If interested in any way in the sub
bet matter Of the loan."