Evening star., 1938-06-11
PAYMENT RECORD
OF /. OIL. c. CITED
Percentage OF Collections
Held RemarkabIe-Agency
to Begin Sixth Year.


with more than 100000 borrowers
making satisfactory payments-bor-
rowers who few years ago we're faced
with the almost certain loss of their
hon1es-the Home Owners Loan Corp.
reaches It's fifth anniversary Monday
with great part of its work ac-
complished
Looking back to the troubled days
when the H. o. L. C. granted its loans,
when the average borrower was two
years delinquent in both principal and
interest on his then existing mortgage
and far in arrears in taxes. General
Manager Charles A. Jones revealed
records which show three-fourths of
the million haraSsed persons who
sought aid are on the road to debt
free home ownership. More than
100000 others still are being aided in
their struggle, while more than $4,000
already have paid their loans in full.
Borrowers Record Good.
The records of those borrowers not
only brought from Mr.. Jones a tribute
to men and women who could fight
their way back from the worst de-
preston in American history, but ar
Endorsement of the present housing
drive and its offer of the most liberal
terms to encourage home ownership. +.
The home owner has been proved
good security" said Mr. Jones. Many
arguments are being offered the nome
buyer today-arguments that he should
take advantage of the best terms ard
the lowest interest rates ever offered.
Those arguments are true. At the
same time, it should be pointed cut
shown they deserve and can be trusted
to carry out those liberalized con-
tracts. The records of the H o. L, C.
are adequate proof"
Revealing that H. o. L. c. borrowers
already have paid back 1895. .35s. 7o5.
or 1875 per cent of their principal
Indebtedness, Mr.. Jones declared COL
leotions had been remarkable" even
in recent months. In March they were
97.5 per cent of billings: in April they
dropped To 81 per cent, but figures for
May, still incomplete, show another
upswing.
More Want Home Ownership.
The experience of the H. o. L. c.
not only has shown that present home
owners are determined to keep their
properties, but that there is a renewed
desire for home ownership" said Mr..
Jones. This has been brought about
by the new conditions for which H.
o. L. c. has been largely responsible
In the old days great share of
American home seekers never ex-
pected to completely own their proper
ties, They assumed not only one
mortgage, but usually two and some
times three. They usually paid off the
second and third, with extortionate
fees, but renewed the first mortgage
time and time again.
The H. o. L. c. popularized the
direct reduction loan. It introduced
per cent interest rate. It helped
abolish the second mortgage. Its hor-
rowers are becoming home owners in
the complete sense-and the home
seeker today is getting advantage of
the same processes. These modern
contracts, all favorable to the home
seeker, have renewed the desire for
home ownership"
Reverting to the assertion that
American home owners are good Sc
curlty, Mr.. Jones referred II the
homes taken over by the H. o. L. C.
$4,000 Homes Acquired.
SC t,t,z tl.n@ 49,
acquired about $4,000 homes" said
Mr.. Jones. and it will be forced to
take over more But the million loans
granted by H. o. L. c. were to dis
tressed people. Their plight did not
end with the day their loans were
granted; many of them have struggled
Tor years for a normal living and
many OF them lost their fight.
out of those million persons
whose homes the H. O. L. c. salvaged
about $4,000 today are either entirely
current or less than three months in
arrears. About $4,000 more are
meeting all current bills and making
regular monthly payments on their
arrearages in addition Far more than |
100000 others still have a chance to
save their homes There were. of
course, thousands who Just couldn't
make the grade-and some who want |
ed something for nothing.
Home Owner Good Security.
H. o. L. C. foreclosures still are I
Tar below the rate of comparable pri- |
Vate lending groups. H. o. L. c. had |
to take bad risks; 1t was doing an |
emergency job. On the other hand, |
private lenders now are being an |
preached by home seekers who can |
be regarded as good credit risks, per-
sons with jobs and futures. If 80 |
per cent of H. o. L. c. borrowers are
coming through with the difficulties
they had to overcome the only con-
clusion to be drawn is that the home /
owner is the best kind of security"
Mr.. Jones stressed that thousands
OF the borrowers saved by H. o. L. c.
we're salvaged because of the leniencv |
which such an agency could grant and
the aid it was able to give. Fore
closures have not been made nor will
they be made, he asserted, where a
borrower has a chance to save his
home. The average H. o. L. C. fore
closure came only after borrowers
were 20 months delinquent in both
principal and interest. with taxes
mounting to point where the cor
poration. in protection of bondholders
and taxpayers, was forced to act.
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