Evening star., 1938-06-28

neighborhood naturally apply. Fur
thermore, the Law requires that ut
least is per cent Of the loan proceeds
must be expended for materials and
labor on building construction or re-
pair, in the case Of farm loans.
You may now use an F. H. A.
insured loan to buy . farm and build
. home on It, or you may refinance
debts on your farm, or you may re-
pair existing buildings. The r. H., A.
farm plan is conyenient one In that
It makes 1t possible for you to do sew
srsl Of these things In one operation.
Mortgage Association.
The recent amendments to the act
also made 1t possible for US to charter
4 national mortgage association to
buy and sell mortgages and to make
certain types Of loans. Title III Of
the, act, which provides for these as
sociations. intends that they should
furnish . market for insured mort
cages and fll the gap in making loans
where other sources Of capital are not
available.
The first association was established
in February and Is now in active op-
GRAFTON. Recently it sold an issue OF
SIS .o00, 900 of notes in order to raise
cash with which to carry on its busi-
ness. The offering was oyersuhscribed
more than so times, with applicatio
exceeding $1,000, 900 900. This enthu-
siastic popular response indicates to
me that this method Of providing
money for housing will be q helpful
one.
The property improvement plan Of
the National Housing Act, which
lapsed in April, 1897, also was re-
enacted by the amendments. More
than $4,000, 900 of notes for mod
ernization and repair purposes are
being reported to us every week under
this plan. Financial institutions have
made loans for improving more than
100000 homes and farms, and busi-
ness and institutional properties.
Mortgages at Peak.
The amendments to the act have
greatly stimulated the amount Of
business being handled by the admin
istration. Week after week, mortgages
sslected for appraisal, which con-
stitute applications nearing the ap-
proval stage, have been coming in at
rate never before reached.
Furthermore, the construction Of
large-scale rental projects under the
act has gone ahead more rapidly.
Commitments to insure these projects
or the approval of plans for their
construction have greatly exceeded
comparable figures for other years
during the first half Of 1898.
We provide insurance for MORTGAGES
on large-scale rental developments be-
cause We recognize that many families
prefer to rent their dwelling quarters
despite the advantages of home owner
ship. Many families have jobs which
do not permit them to stay long in
one place, or they fSee other condi-
tions which initiate against their bor-
rowing money to build . home.
For these people, the National
Housing Act encourages the construc-
ton Of rental dwellings and apart
ments intended to rent at modest
figures. We assist those who build
these projects in paying OF the mort
cages as soon as possible, and protect
them against financial failure both
by the modest rents which we encour-
age and by the construction standards
and other safeguards which we take
pride in.
The Federal Housing Administration
Is now paying a large part OF IT'S
operating expenses out Of its current
income. This income. derived chiefly
from mortgage insurance payments.
and appraisal fees, is coming in At
an annual rate Of 100000 This
will increase IS loans now being ac-
cepted for insurance begin to pay
premiums few months hence.
am especially proud Of this fact