The Washington times., 1937-02-15
BILL AWAITING
PRESIDENTS
SIGNATURE
Government Backing
Of Home Buyers
to Continue
BY EARL GOODWIN

President Roosevelt expects
lively expansion in the private
building industry, particularly the
small and medium-Sized homes, al
most Immediately as the result of
the Congressional resolution "ex-
tending the guarantee Of deben-
lures issued in case of foreclosure
under the National Housing Act"
The resolution has been sent to the
White House and will be signed
within a short time.
The resolution. to the home
builder, continues the vital FILA
activities whereby several thou
sand banks and other institutions
have been encouraged and enabled
to lend money to house builders
and home owners who have reno
waited their properties. There is
also considerable educational work
covering landplanning and Subur-
ban planning in the FHA educa-
tional activities-aimed at prevent
ing overwhelming losses to small
property owners through deprecia-
ton of land values. The vision of
the FILA heads now is to save the
country in the future from blighted
areas which are the wrecks Of mis-
taken real estate booms Of yester-
day.
Drive to Continue
As result of the resolution
about to become law, the Federal
Housing Administration expects to
continue its various functions, in
cluding its unique educational
drive. which so far has resulted in
the lending by $3.50 banks and
other institutions of private money
to 1,150,000 home builders or home
renovators.
Private money. to the extent of
$1,250,000,0 900, has been loaned
under the FHA plan Of mortgage
and insurance; one mortgage, low
interest; monthly repayment; no
extras. There are signs this drive
may be expanded with vigorous
educational drive.
President Roosevelt is known
personally to have asked for speed
on the resolution, and has con-
siderable interest and pride in the
educational campaign to arouse
banks and local companies to lend
money to the average small-to-
medium householder-and to lend
1t up to 80 per, cent of the house
value.
The trick in this has been the
fact that lowering right close to
the transaction has been that old
gentleman with the Al dredit-
none other than Uncle Sam him
self. There may be plenty of good
solid reasons why banker should
lend little Tommy and Mary Jones,
Just married, $4,000 to $8,000-but
experience points to the fact that
little Tommy and Mary never be-
fore in all the history Of home.
making got a bank or other loan
institution to lend up to 80 per
cent Of the value Of the property
until Uncle Sam stepped in behind
the couple and said to the banker:
ITS all right, Mr.. Banker
II the Jones don't meet their
charlottesville do t."
LOSSES ARE SMALL
Uncle Sam has been doing It
through the virtue Of the author.
lty which is again to be vitalized
In the resolution the President ex.
poets to sign. The sad fact re-
mains that if the President does
not sign the resolution, Uncle Sam
will remain standing by Tommy
and Mary-but the banker will
disappear. The financial institu-
tions seem to like the lowering
presence of the FILA and Uncle
Sam.
-, So far, out of the billion or so
of dollars which have been loaned,
only about $4,000 has gone
flooey-which is the small sum
Uncle Sam has had to take over
in the way of property. And that
sum recently has been reduced by
$4,000 owing to auction sales-or
some other method Of realizing.
- Many persons, even builders,
. still have the idea that the FHA
lends Government money for
DullQIng, DuJ InaC Is eXdCCly Gne
opposite of the truth. The vital
:, and unique function of FHA is
:, to educate the general public, in
Guiding the banks, into this purely
. voluntary plan in which the house
holders, the bankers, the builders,
the renovators, the painters, roof
!. ers and whatnot all get together
: In one grand building program,
: done on simple and easier finan.
= cia1 arrangements than have been
> current heretofore.
: Purpose Explained
: Administration leaders point
: out that the educational material,
: or propaganda. publicity or what
: ever it may be called, has not had
J, the object Of justifying public ex-