Evening star., 1951-09-02
Truman Signs Bill
Easing Regulations
On Housing Credits
BY the Associated Press

President Truman yesterday
signed a bill easing credit regula-
tions on lower priced homes, and
the Federal Reserve System acl
cordingly put into effect a revis-
ion of Regulation X"
The new law allows lower down
payments and 25 years to pay off
any loan on housing up to $4,000.
Under the previous regulation the
maximum maturity was 20 years
for housing priced at more, than
$1,000 except for hardship cases
under Gil loans.
The new minimum down pay
ment requirements will apply TO
new houses, Housing and Home
Finance Agency official explained,
and to those old houses bought
under a GI loan or an FILA in
|sured loan. He pointed out that
old houses under conventional
financing are not under credit
controls. Conventional financing
is that done without the aid Of
Government loans or guarantees.
Goal of $4,000 Units.
The National Association of
Home Builders said in a state
lment that the new law would al
low the industry to reach a Gov
ernment-set goal of 850,000 new
dwelling units this year.
Without some relaxation of
controls, the association said.
there would have been little
chance of starting 100000 units. y
The law is designed primarily
to encourage construction of new
homes for defense workers and
military personnel.
Also the independent Offices ap-
preparation bill which Mr.. Tru-
man signed into law yesterday
carries an acknowledgements
sored rider authorizing construc-
tion this year of $4,000 new hous-
ing units under the Public Hous-
ing Administration.
Temporary Housing Extended.
In still another move to provide
homes in critical defense areas,
the President extended for one
year the time within which the
Government must get rid OF, or
Idemolish. temporary housing built
during World War II. Mr.. Tru-
man said more than 100000 living
units still under the housing and
home finance agency are affected.
To help hold workers in the
building trades, the Wage Stabili-
lzation Board yesterday authorized
construction industry wage in
icreases up to 10 per cent above
the pre-Korean level.
The new law does not require
any changes in credit regulations
on homes costing more than $12,-
900, although the President is al
lowed to ease the curbs when he
deems necessary in critical areas.
On lower priced homes in such
areas credit restrictions could be
as long as there is an
acute shortage of residential houS-
ing.
Builders Given 80 Days.
+ Once an area is designated
critical" by the Federal housing
administrator. private builders will
have 80 days in which to start the
needed building, with Regulation
x suspended on lower priced
homes and eased on costlier ones.
If private industry failed to meet
the housing needs during the 80
days. the Government could move
in and build and rent homes.
In addition to authorizing an
appropriation of $50 million for
such building. the new law au-
Ethorizes $50 million in grants to
local governments for community
facilities and services and $40 mil
| lion for the purchase and inn
provement of land. The authori-
cations are subject to later legis-
'lation actually putting up the
money.
The Federal Reserve issued new
tables on maximum loans and
minimum down payments. 1t said
these schedules follow the re-
Iquirements of the new law up to
$4,000 and then, as rapidly as
practical, return to the down pay
ment requirements in effect since
October. 1t said the level OF pre-
vious regulations is reached at
$4,000 land from that point on
the mortage limits are substan-
TALLY the same as before"