Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-13

now enjoy.
The outcome of this argument
eventually could affect millions
OF persons, although the imme-
date impact of the decision is
debated. Veterans organizations
are in on the fight. So is the
home building industry. And
money lenders. too.
OF all the benefits granted
: under World War IFS "GI Bill
Of Rights" only the home loan
privileges remain In full force.
Under the law, the Federal
Government guarantees certain
loans which veterans may obtain
70 buy homes.
How Law Works
This Is the way it works: the
veteran picks out the house he
wants to buy, has it appraised by
the Veterans Administration, and
then arranges to buy it on credit
obtained from a private firm.
The terms may be as liberal as
2 per cent down and 80 years to
pay. The interest on the unpaid
balance is AZ per cent. The
veteran often has been able to
get such terms because the Gov
eminent guarantees up to $500
OF the loan-guarantees that it
will be repaid.
Such terms helped spark the
great postwar BODYBUILDING
boom. So the veterans, home
builders and money lenders all
object to letting the law, as it
applies to World War II veterans
expire as scheduled on July IS,
1857.
Says the American Legion:
We want a three-year extern
sion"
s. Says the National Association
of Home Builders: Expiration of
the law would be a knock in the
head to the building industry. Z"
Says a money-lending building
and loan executive: Our vets
must not be abandoned now"
league Sees Slight Effect
One influential man seems to
think most of the aboye is a lot
Of pish and tottle. He is Repre-
sentative Olin E. league, Chair
man OF the House Veteran Com
mittee.
Mr.. league, a Texas Democrat.
says expiration of the law
wouldn't have too much effect"
on home building. OF the more
than Is million veterans of
World War II, Mr.. league fig
ures that only one million poten-
tial loan-seekers are left.
Mr.. league reaches this con-
cluSion through eliminating nine
million veterans who have
bought homes, nearly one mil
lion who fought in both World
War II and the Korean war (and
can use their Korean benefits
until 1861, more than three
million who live in rural areas
where loans are not available. a
half-million who will exercise
their loan rights before the law
expires. and three-quarters OF a
million who are such bad credit
risks that they couldn't get loans
anyway.
VA loans have been account
ing for an increasing share of
all the mortgages issued in re-
cent years, but Mr.. league
thinks the effective demand is
nearing exhaustion.
1t must be recognized that it
is not advantageous for many
veterans to buy a home, even
though they may be able to do
5cOi Ahi 1CdE uE says. "a Sluuy
of these figures indicates there
will be a relatively small number
of World War II veterans inter-
ested in participating in the pro-
gram, even if an extension were
granted"
Although Mr.. league opposes
extending the CT bill, he is not
ready to abandon the idea of
Government guaranteed home
loans. He wants even more.
He has introduced a bill which
comes close to Offering G1 ben
efits, and then some, to everyone.
His bill is in the form of an
amendment to the law governing
the Federal Housing Administra-
ton.
FILA, a depression inspired
product of the New Deal, offers
Government guarantees on home