The Wilmington morning star. [volume] (Wilmington, N.C.) 1909-1990, 1945-01-15
THOUGHT FOR TODAY
Whatsoever Is not of faith is sim
Romans 1923
Home Loans To Veterans

The next big step ahead to implement the
nations program for home loans to veterans
OF World War II is imminent with meetings
of forty-odd state legislatures early this year.
Horace Russell, general counsel of the United
States Savings and Loan League, points out.
State laws in many cases prohibit mort
gage lending institutions from offering the full
advantages of the G. l. Bill of Rights to ap-
plicants, and adjustment of the statutes to
the veterans loan program is being sought
by veterans organizations and lending insti-
tutions The loans already consummated have
been in states with fewer restrictions, or by
lending institutions under Federal charter
which have already been authorized to make
such loans.
eff there is any meaning left in the as goes
Maine so goes the nation adage, there will
be little hesitancy on the part of the states
in making the adjustments, Mr.. Russell said.
Maine acted last fall, in special session.
to give specific authority to lenders operat-
ing under its laws to offer soldiers and sailors
the benefits of the Servicemens Readjust-
ment Act of 1914. Massachusetts has also spe-
officially authorized these loans to be made
by lenders, invalidating any barriers which
existed in that state.
"Of concern to all lenders are the state
laws which now prohibit minors from bind.
ing themselves on loan agreement since
birthday, will otherwise be eligible for the
benefits of the law, and should not be held off
on account of their age.''
The state laws which need adjustments are
of special interest to the United States Saw
ings and Loan League, out of whose 5000
members, some 2400 operate under state laws
as to percentage of loan to property value
allowable, length of loan term, type of re-
payment arrangement which can be contracted
for, and the like
The summary of existing laws with regard
to the salient features of loan under the G.
I. Bill shows that as far as savings and loan
associations are concerned rs states have no
limitations as to the percentage of value that
an association may lend, and are thus already
in position to make the no-down payment
type of loan which the G. I. Bill seeks to make
possible by its special guarantee provisions.
These states are among those where the saw
ings and loan institutions have already made
their first G.. l. loans.
Half of the states, Mr.. Russell points out,
have no restrictions as to the maximum
amount of any one loan by savings and loan
institution to an Individual.
Twety-six states have no limitation to
the maximum loan length and all states ex-
cept one can make loans up to twenty years.
Twenty-one states place no limitation on the
type of real estate security which may be
mortgaged.
Three states place no limitation whatever
on the type of real estate security which may
be accepted for a loan.
In the main these are the states which have
already seen full steam ahead in the veterans
loan program, it is pointed out. With the legis-
latures in session it is expected that the vet
Grams organizations and state trade organiza-
lions of the lending institutions will lose no
time in comforting with the state legislators to
gee that veterans in those states do not suffer
disadvantages in the national program.
-V-