Evening star., 1937-12-18
Housing
Continued From First Page.)

suggestions are vital to sound proce-
dure in the proposed program:
l. Concentration of insurance of
mortgages by the Federal Housing Ad-
ministration on new construction, re-
pairs and modernization after first of
the year.
2. Requirement of Endorsement of
the 80 per cent mortgage paper by the
builder or real-estate operator until
it is paid down to rs per cent, and
that further security be given in the
form of builders pool of per cent
of the property value. This sugges-
ton is in line with the English prac-
tice.
Full Publicity.
g. Requirement for full disclosure in
publicity and advertising for the Gov
ernment-sponsored F. H. A. program
OF the cost of insurance, service
charges, commission, brokerage, re-
payment penalties and other fees.
4. Restriction of the national mort
gage associations functions to mort
cages on large scale housing projects,
If such instrumentalities to make, buy
and sell mortgages are deemed by the
Congress to be necessary.
5. Opening up of the Federal Home
Loan Bank System and Federal Saw
lngS and Loan Associations lending
policies to assist the local thrift and
home financing institutions in taking
care OF small multi-family dwelling
financing, where the communities find
such housing necessary. An amend
ment is proposed to the Federal Home
Loan Bank Act to make mortgages on
units for more than four families &C
ceptable as collateral for Home Loan
Bank advances at the discretion of
the board. Also the Home Owners
Loan Act would be amended to permit
federally chartered associations to
place 80 per cent of their assets in
mortgages on residential property
above $4,000 in cost.
6. If housing legislation is to be
comprehensive, it should include ad-
Justments In the cost of insurance Of
shares in savings, building and loan
associations to make the rate COM
parable with that in commercial
banks, in view of projected further
declines in the yield on long-term
mortgages.
Lower Limit Asked.
7. In order that all-sized cities
may get even breaks under the pro-
jected housing program, a lower limit
was asked on the amount of each high
per centage loan for home building
to be insured in smaller cities and a
higher limit in larger cities than the
S5,40O proposed in the present bill.
Disparities in building costs in diff
ferent sized communities make this
necessary, it is pointed out.
8. The league statement commend
ed the revival of title I of the ma
tional housing act to facilitate the
undertaking of greater volume of
modernization and remodeling loans,
asking merely for declaration of legis-
lative policy with regard to the par
ticipation of savings and loan insti-
tutions.
Questions as to long time policy In
home financing which the industry
fears may be unsoundly directed by
this legislation, unless care is exer-
cised, were raised in the statement.
/. Should the guarantee or insur-
ance of private mortgage debt become
permanent policy and be placed on a
subsidy basis, with the United States
Treasury obligated to pay the lenders
in future depression or real estate
deflation?
Other Points.
2. Should the support Of the Gov
ernment and the Treasury be thrown
so unqualifiedly behind the stimula-
ton Of activity in apartment building
to the possible longtime detriment Of
the national ideal OF individual home
ownership?
3. Is it truly private enterprise If
Government capital must be used to
organize national mortgage associa-