Evening star., 1946-04-30
Veterans
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Gil home loans will not be approved
where Veterans Administration ap-
pralsers think prices asked by build
ers on the basis of FHA ceilings are
too high.
Asked if the Veterans Admins
tratlon now will permit its ap-
praisers to approve loans at FHA
ceiling prices, the veterans agency,
through its public relations office,
would say only that ''our appraisers
will approve loans at reasonable
values as indicated by the act (the
CT Bill of Rights).''
Talks to Appraisers Today.
Mr.. Pavesich was, in New York to-
day to address a meeting of ap-
praisers and bankers. When he
made his original charges last week,
MI. Pavesich said he would tell the
appraisers in New York and at sub
sequent meetings throughout the
country to follow sensible" ap-
praisal practices and not to be
guided by FILA ceiling prices. VA
officials said today that Mr.. Pavesich
had been given no instructions to
change his talk.
Although the joint statement
tended to back up cases of overpric-
ing cited by Mr.. PaveSich, it began
in this way:
1T is regretted that statements
made by Francis Pavesich of the
Veterans Administration have led
to an erroneous impression that FHA
processing of priorities has been
improperly done and has resulted
in housing prices generally higher
than justified Gen. Bradley states
that is not his view of the appraisal
problem involved, and joins in the
following review of the matter"
Seeking Only Maximum Ceiling.
When the housing agency agreed
to act as the agent for the Civilian
Production Administration in set
ting ceiling prices on units built
under a priority system, the state
ment said, it was undertaking only
to determine a maximum ceiling
price for the proposed house and
not to fix value thai would be the
basis for home loans.
The speed required in the system
did not permit listing the proposed
locations, nor we're full, detailed
plans and specifications required to
be fled the three officials said,
adding that FILA was not authorized
to inspect construction of non FHA
houses nor demand that the build
ers adhere to construction or design
standards.
The statement said Mr.. Foley sug-
gested some weeks ago that the only
way OF preventing varying ap-
praisal figures would be the adoption
of "a rigid system of close cost esti-
mating, land appraisal on the site.
required standards and followup in
spectlons to insure that the house
proposed was actually built
The size OF this task and the de-
gree OF cooperation it would require
from the public and industry, the
statement added, has delayed de-
clsIon on it by the agencies con-
cerned and consequently FHA has
been without authority to make such
More Information Required
The statement added that priority
regulations recently have been re-
vlsed to require more information
from builders applying for priorities
which will make closer estimates of
costs possible.
The statement contended that in
many cases the difference between
What Veterans Administration ap-
oralsers think home is worth and
,he ceiling prices set by FHA repre-
'ents no more than difference of
opinion of estimators or appraisers,
which is frequently wide in this
market"
Mr.. Pavesich had reported that
5he difference between ceiling prices
set by FILA and what Veterans Ad-
appraisers thought
homes were worth amounted to as
nigh as $1,000 on a $4,000 house.
The statement declared that in
5he present condition of materials,
abor and land supply there is little
either of estimates or
in the industry on cost
Of building and added that the
housing agency has to estimate costs
and nrofits before a1ho,Ise je b,,;1+