Evening star., 1936-12-05
REALTY RESEARCH
UNIT IS PLANNED
Temporary Board at Work
ION Project of National
Association.

A temporary board Of directors is
at work on the details of an educa-
ton unit, to be known as the National
Realty Research Foundation, for
which plans were laid at the recent
convention of the National Associa-
ton of Real Estate Boards In New
Orleans.
In establishing its program for the
coming year, the association also has
approved resolution proposed by its
committee on realty finance, renew
ing its plea for creation Of Federal
mortgage discount agency and sug-
eesting that the national housing act
be amended to provide for regional
agencies to purchase insured mort
cages.
The national organization also will
endeavor to persuade the Federal
Government to abandon all direct
construction of housing projects, and
1t suggests that public housing COM
panies be set up with Federal aid
to build and sell homes on easy terms
only to that small percentage of
American families which cannot pay
economic rents or purchase home
under present conditions"
Private Enterprise.
Realtors contend that private enter
prise can serve all except small
fraction" of the housing needs of the
country, and they ask that the matter
OF eliminating slums, where they exist.
be separated from activities designed
to produce new housing, and that the
initiative for land clearance be placed
on the local communities with finan-
cial help, if necessary, from the Fed
eral Government.
tion's Realty Finance Committee,
which will form an important part in
the industry's program for 1887, were
summarized as follows:
l. That all mortgages on housing be
eligible for insurance regardless of
who owns them, provided the mort
cages are serviced by an approved serv-
icing agency. The Federal Housing
Administration is designed to serve the
entire public and limitations on mort
cages tends in our Judgment to restrict
considerably the number of home
owners or home buyers who can be
helped. The setting up OF capital re-
quirements for approved mortgages
tends also to throw the mortgage busi-
ness too largely to banks and similar
financial institutions and discriminates
against the smaller real estate Offices
which in many cities are TODAY
handling half the whole volume OF
home mortgages.
Government Obligation.
2 That the F. H. A. insurance fea-
ture be improved by making the deben-
lures which the mortgage receives in
case Of default permanently a Govern
ment obligation. While We feel that
the Federal Housing Administration
should be operated in a business like
manner. We do not regard 1t as a busi-
ness institution, but as public agency
set up to assist in solving certain eco
nomic problems in the housing field
For this reason We feel that the in
eurance should be as complete as pos
sible. II the work Of the Federal Hous-
fective.
3. That Title III Be changed 50 as
to provide for regional mortgage banks
which would purchase insured mort
cages and issue bonds 70 the public
it Is our belief that such regional
banks will tend to q better distribu-
ton Of mortgage funds throughout
the country. The number Of mort
gage associations should be few 20
that they will be large, strong and
stable institutions whose bonds will
find public recognition on the part OF
the investors.
4. That interest rates to borrowers
under insured mortgages be estab-
]ished at approximately / per cent
more than the rate at which the
bonds Of the regional mortgage banks
can be sold. This would give the