Evening star., 1951-01-26
u. ). Plans 10 Control
Commercial Building
By Mortgage Curbs
BY Robert J. Lewis

S'et Sfaff %oTSSPoHuenI
CHICAGO, Jan. 26.-The Gov
ernment soon will clamp mort
gage credit curbs on commercial
buildingN in order to hold down
license applications for this type
of construction during the state
Of emergency.
That was revealed by Federal
Reserve Board official at a mid
winter conference here of the
Mortgage Bankers Association of
America which got underway here
yesterday as the seventh annual
convention of the National As
sociation of Home Builders was
brought to a close.
Draft of Order Prepared.
William A. Clarke, consultant
to the Federal Reserve Boards
Office of Real Estate Credit, said
a draft of the new credit order
covering commercial building had
been prepared and would be issued
in time Ito relieve the National
Production Authority's problems
In granting construction licenses.
A recent NPA order halted the
beginning of construction of
stores, Office buildings and most
other commercial construction un-
til licensing system could begin
to function on February Is.
Presumably, the credit order
will be issued before that date.
1t probably will require owners
to have substantial cash in hand
before permitting them to go
ahead with other financing.
Optimistic About Home Building.
Four days of convention ~ses-
sions seemed to leave home build
ers more optimistic about 1851
residential construction problems.
Both w. P. Atkinson, Oklahoma
City builder VINO was elected new
president of the organization, and
Thomas P. Coogan. of Miami, re-
tiring president, said they believed
the goal of $4,000 new houses
cCG Ny tllC SOFCl lllk4C1lU 1UI l1llS
year would be reached.
Addressing a final panel ses-
sion, both leaders expressed con-
fidence that builders would be
helped in obtaining materials in
case shortages developed.
Gloom Expressed Earlier.
The builders swing to optimism
was in the face of earlier express
sions of gloom over Government
moves to cut back the number of
housing units started this year
to 850,000 from the 1850 record
breaking total IA million.
Housing Administrator Raymond
M. Foley, who failed to convince
the builders convention it should
not come out fatty against the
SO billion defense housing bill,
met with reception more to his
liking from the mortgage bankers.
Leaders of the mortgage lending
group appeared unafraid of the
pending bills provisions concen-
trating defense housing powers in
Mr.. Foley and are understood to
favor its enactment, with perhaps
a few amendments.
While no public announcement
IS expected to be made, officials
indicated the association definitely
would not oppose the bill. Build
ers rejected it totally. proposing
instead, enactment of substitute
legislation.
Element in Shortages.
Commissioner Franklin D. Rich
ards of the Federal Housing Ad-
ministration warned the mortgage
bankers yesterday that when
lenders require builders to have
materials on the site of project
before making construction loans.
they are making shortages more
acute and disrupting the orderly
flow or building materials"
In an apparent attempt to al
leviate a Tightening market in
construction money-a situation
laid to fears on the part of lend
ers that builders might not be able
to complete all jobs started be-
cause of possible inability to OBJ
tain materials, Mr.. Richards said:
Housing, in addition to being a
peacetime industry, is vital to de-
tense and national production.
For this reason, it cannot be a
casualty of the emergency, but
rather will find it necessary to
convert its efforts to producing in
accordance with the needs of the
emergency"
Some Seek Higher Rates.
Some mortgage bankers seemed
to be campaigning for somewhat
higher interest rates. Others
didn't expect interest rates to 20
higher than at present.
Milton T. Mcdonald of Jersey