Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-01-21
Housing Plan Failure
Seen If U. 5. Stops;
Mortgage Buying
By Robert J. Lewis
ssor Ssaff Correspondent !.

Eisenhower's 1854 housing pro-
gram will fail unless the Gov
eminent stays In the mortgage
buying business, the Nations
home builders believe.
The home builders expressed
this view at their convention
here publicly yesterday for the
first time in the many months
during which the Eisenhower
program has been shaping up.
Richard G. Hughes, new presi-
dent Of the National Association
of Home Builders and a men,
Der of the Presidents Housing
Advisory Committee, told a press
conference:
"The program will be a hoax
and builders will get the blame
unless the country has a Fed
orally controlled and supervised
second-market reserve fund"
To Fight for Plan.
Many builders here expect that
President Eisenhower, in his
housing message to Congress
next Monday, will call for con-
tinued Government control of
mortgage buying. Whatever he
does. builders will fight in Con-
gress to have such Government
operations continued.
We're going to fight for q
Government secondary market,
and feel the atmosphere is such
that it has a good chance of
being provided" Mr.. Hughes
said.
For years. the Government
has been buying and selling
home mortgages as a means of
bolstering the mortgage money
supply. But the Presidents
Housing Advisory Committee
now wants this stopped. 1t
would replace the Governments
mortgage-buying agency. the
Federal National Mortgage AS
ISOLATION with a private corpo-
ration.
Builders are opposed to this.
They say the Government has a
public responsibility to see that
housing production doesn't drop
of sharply. They also feel the
Government should help make it
possible for low-income families
to bury homes. This it could not
do if it relinquished direction
over mortgage buying. the build
ers contend.
This position is supported by
FILA Commissioner Guy Holly
day. who told delegates yesterday
that money lenders would not |
be willing to extend 40-year no.
down-payment loans.
Since the administration is
said to consider provision of |
such liberal loans to be a key |
part Of its housing program.
President Eisenhower has been |
faced with difficult decision.
Shall he accept his advisory
committees plan to get the Gov
eminent out Of mortgage buying |
and take a. chance that low-in-
come homes will never be built? |
Or shall he disregard his advis-
DRY committees plan to open |
the way for a heavy mortgage
buying program by the Federal
Government?
So far as Congress is con-
cerned. builders are convinced |
they are on the popular side.
Neither the members of Congress
nor the administration, builders
feel. can afford to allow the
home building business to go
into a. slump. Nor can a Re-
publican administration afford
to admit there is no workable
private-enterprise answer to the
public housing issue.
Builders Have Answer.
To those who claim Govern
ment mortgage buying amounts.
in effect, to direct Government
lending for the benefit of build
ers and consumers, builders have
an answer.
"This kind of Government
participation amounts to no more
than the Federal Reserve Board
engages in all the time" Mr..
Hughes said.
Earlier. builders said annual
production of IA million new
homes during the next 10 years
is 'attainable."
Spokesman said mortgage
money has loosened up in recent
months and that mortgages are
beginning to sell at or near par
after a lengthy period in which
they went begging at substantial