Evening Star Newspaper, June 1, 1935, Page 20

R ANALYZE CHANGES IN LOAN FACILITIES Several Major Restrictions Lifted by Amendment Approved Tuesday. EA President Roosevelt's signature Tues- day on the bill amending the Federal | Home Loan Bank act, the national | housing act and the home owners’ | L ESTATE loan act places further stimulus be- hind the flow of mortgage money | from normal channels and gives | promise of more practical and wider | use of various Federal agencies in the fleld. | A section-by-section analysis of the | measure is presented by Morton Bod- | fish, executive vice president of the United States Building and Loan League, who was one of the chief witnesses in hearings and has fre-| quently been in conference with the Federal Home Loan Bank Board cn some of the new provisions. Amendments to the Federal Home | Poan Bank act follow: | Section 1. Makes mortgage on four- family home eligible collateral for advances from a Federal Home Loan Bank to a member building and loan association, whereas three-family home was largest unit eligible before. Section 2. Cumulative dividend pref- | erence enjoyed up to now by United | States Treasury-owned stock in the Federal Home Loan Bank system is eliminated. Banks will ps helding building and loan associations and the Government at the rate out of current earnings. Seciton 3. Directorates of 12 Fed- eral Home Loan Banks will now consist of 12 members, four chosen by the Federal Home Loan Bank Board and the other eight by the stockholders. Banks at present have 11 directors, two chosen by the Fed- eral board. Advisory Unit Created. | Section 4. Creates a Federal Sav- | fngs and Loan Advisory Council of 18 members to confer with the Federal | board on general business conditions, | request information, make recommen- | dations on the operations of the #vstem or the Federal Savings and Loan Insurance Corp. Group will be in somewhat same role as Federal Advisory Council 1s to Federal Reserve Board. Aim is to get the practical point of view of the actual lender of funds into the svstem's plans | Section 5. Rewrites the collateral provisions of the Home Loan Bank #ct, making six-year amortized mort- gages eligible for security behind bank mdvances up to 65 per cent of the balance outstanding on such mort- gages. Formerly mortgages had to be for eight vears or more before they enjoyed this preferred status. All obligations guaranteed by the Vnited States are eligible up to their face value as collateral for Home Loan Bank advances. Section 6. Further amends the eollateral provisions of the act by making 20-vear mortgages eligible security where 15 vears was former outside limit. In aame section the $20,000 Iimitation on property value securing collateralized mortgage s shifted to apply to the mortgage itself, thus providing for use of mortgages in larger amounts as collateral. * Section 7. Brings non-member in- stitutions into the pale of the Federal Home Loan Bank’s advances by per- mitting the regional banks to loan up to 90 per cent of the value of mort- gages insured under Title II of the mational housing act, to any institu- | tion offering them as security, pro- vided such institutions are subject to inspection and supervision of some governmental agency, and do mort- gage lending chiefly with their own funda. Section 8. Exempts the consoli- | dated debentures of Federal Home | Loan Banks from taxes, Section 9. Provides that the Federal Home Loan Bank Board may deposit receipts, except from sales of bonds and debentures, in the United States Treasury and withdraw them to pay #alaries, expenses. etc., without being routed through the regular congres- sional appropriation channels. Amendments to home owners’ loan act are as follows: Section 10. Makes dwellings for not more than four families, used in whole or in part as a home or held as home- stead, eligible for relief activities of the H. O. L. C. The former provision of the law simply stated that the dwelling must be used as a home or held as a homestead. Section 11. Stretches the maximum bond issue to $4,750,000,000. New funds to be used in filling applications previously filed and those filed within 30 days after the act is signed by the President, Section 12. Prohibits deduction for taxes and assessments not due from Joanable value in H. O. L. C. refinanc- ing transaction, if such taxes and assessments constitufe a reasonable annual burden in the discretion of the board. Limitation on Employes. Sectfon 13. Bans any individual eonnected with a corporation lending | money on real estate from being em- ployed as an officer or employe in the H. 0. L. C. offices, and provides that | all such officers or employes must be residents of the State served by the office in which they are employed. Section 14. Applicants for H. O. L. | C. refunding must establish distress even where the existing loan is held | by an institution in liquidation. Bor- rowers from such liquidating institu- tions were formerly eligible for H. O. L. C. loans without establishing their | economic disability. Section 15. Forbids the use by the H. 0. L. C. of appraisal service of any | person interested in the property in question. Section 16. Increases amount for financing repairs on properties mort- ged to the H. O. L. C. from $300,- 000,000 to $400.000.000. Section 17. O. L. C. may pur- | [ Chevy Chase, D. C. | | Brand-New Center-Hall Brick 5804 Nebraska Ave. Here is the outstanding home of today’s market. 6 rooms, 2 baths (glass shower door), break- fast nook, big finished attic, gide porch, built-in garage, and perfectly constructed by master builders. This home must be seen — many new features — fully insulated with ROCK ‘WOOL. Situated in convenient section, on lot 70 feet front. Reasonable Price $12,500 Open Daily Until 9 P.M. FLOYD E. DAVIS CO. Realtory 733 12th Views of two of the attractive gardens of the Capital's public schools. gate and arbor of the Whittier School, Fifth and Sheridan stree®. Below, formal iris garden at the Wheatley. School, 1213 Montello avenue northeast. chase Home Loan Bank obligations, | and full paid income shares in State- chartered and Federally-chartered | savings, building and loan associations, up to $300.000,000. If such invest- ment 15 made in a State-chartered association, the assoriation must either be a member of the Federal Home Loan Bank Svstem or be in- sured by the Federal Savings and Loan | Insurance Corporation | Section 21. Specifically makes it il- legal to charge for difference between market and par value of H. O. L. C. bonds in cases of refinancing. l Effect on Associations, | Amendments affecting Federal sav- ings and loan associations: Section 18. Provides for associations which convert to Federal charter to continue making loans in the terri-' tory which they have been serving un- der State charter. Section 19. Increases the sum for encouraging thrift and home financing institutions to $750.000, stipulating that there shall be no discrimination between State and Federal institu- tions of this type. Section 20. Extends provisions of many sections of the criminal code to the Home Owners' Loan Corporation and the Federal savings and loan as- sociations. Amendments to national housing | act: | Section 22. Allows Federal Savings and Loan Insurance Corporation to| determine expenditures under the ac and manner incurred, allowed and paid without regard to other laws governing expenditure of public funds. Section 23. Increases the time in which an insured savings, building and loan association may build up the 5 per cent reserve, from 10 to 20 years. Section 24. Admission to insurance | after first year based on reserve funds of corporation rather than as in pre- vious act, the associations. Section 25. Reduces premium for insurance of savings, building and | loan association share accounts from !¢ of 1 per cent to 'z of 1 per cent | of insured accounts and creditor lia- bilities. Additional premiums also re- duced from % to 13, Section 26. Clarifies rights of in- surance corporation and members of insured assoclations in cases of de- | fault. Section 27. Allows corporation to Above, vista through a beautiful —Star Staff Photo. make contributions to prevent default >f insured institutions. Section 28. Extends limit of period in which insured modernization loans may be made under Title I of the housing act from previous January ! 1, 1936, to April 1, 1936. Loans as high as $50.000 can now be insured for improvement of apartment build- ings, office buildings, hotels. ete. Section 29. In case a borrower on a Title II insured mortgage repays the loan before maturity, the administra- tor may charge a premium to the mortgagor. Such premium is limited to the amount which the premium would have reached had the loan con- tinued until maturity. Section 30. Reduces the necessary | capital stock of national mortgage as- sociations to $2,000.000 | Section 31. Increases the right of | national mortgage associations to is- | sue obligations [rom 10 times the par | value of capital stock to 12 times. | Section 32. Amends emergency farm | mortgage act providing a basis of | valuation for farm property in cases of refinancing. 3729 Jocelyn St. N. W. 1, Block East of Connecticut Avenue iliar with prices in this most desirable location te the b arranged to e oppor- the low price prompt sale— ‘8,950! Convenient Terms This fine brick home has a slate roof, hardwood parquet floors, two fireplaces, an enclosed sleeping porch and many other attractive features, including— ECONOMICAL OIL HEATING EQUIPMENT New Kewanee boil heuse he: plus yea than $90 yearly. with built-in water unit provides round hot water at total cost of MOSS&s Tower Bldg., 14th and K Streets N.W. Metropolitan 1776 Evenings, Shepherd 1871 or Columbia 7685.-W $1.289, 140 HOME COMMUNITY 0.K.D 432 Families to Be Housed by Project at Dun- dalk, Md. Preliminary approval of a low-cost housing project in Dundalk, Md, costing $1,289,140 was announced to- day by Acting Federal Housing Ad- ministrator Stewart McDonald. Dun- dalk, & planned-home community, is located within 7 miles of the busi- ness center of Baltimore on the east- ern shore of Baltimore Harbor. Designed to provide housing facili- ties for 432 families of skilled work- ers employed in the varioys industrial establishments in the neighborhood, including the Western Electric Co., Bethlehem Steel Works, the Chevro- let Motor Co., American Radiator and Standard Sanitary Corp., airplane factories and other similar plants, the project is being built by the Housing Co. of Dundalk, Inc. It will consist of two and three story apartment buildings, arranged in attached groups, with the individ- ual dwelling units comprising three and four room. apartments. There will be 1,334 rooms in 122 building units to rent at an average of $1059 per room per month and an average family rental of $32.80 per month. The buildings will be of a simple Co- lonial character, with brick exterior | walls and pitched roofs. They will occupy 30 per cent of the land, with the remaining 70 per cent devoted to gardens and recreational facilities. The community is serviced by street cars and has improved highways and ample school facilities, both public and parochial. Construction is ex- pected to begin about July 1. | The New York Life Insurance Co., which recently accepted a mortgage on a $1,000.000 project at Clarendon, Va. and on an $8.000,000 project in Brooklyn, N. Y., has agreed to ad- vance the loan on the Dundalk proj- ect. Leon S. Oppenheimer of Baltimore and Washington is president of the Housing Co. of Dundalk, Inc, and John D. Mothershed of Washington is vice president. For the past sev- eral years Oppenheimer has been en- | gaged in the construction and rental of similar apartment buildings in Washington and will be in complete charge of the project. Seeks Election HOUSING EMPLOYE ON “SQUARE-DEAL” TICKET. MISS SYLVIA WALKER Of the District office of the P. H A, who is running for recording secretary of the Young Democrats Club of the District. The election will be held at the Willard Hotel Tuesday. Miss Walker's ticket is headed by J. Raymond Nunan as candidate for president, —Harris-Ewing Photo. OPEN CHEVY CHASE 5534 Nevada Avenue DETACHED, seven rooms (four bedrooms), two baths, break- fast nook, fireplace, metal weather-stripped, completely screened, built-in garage, beau- tifully landscaped and in excel- lent condition. Price 39,950 Terms HARRY LUSTINE 819 11th St. N.W. Natl. 2844 INTRODUCING No. 4806 LELAND ST. . e i Afiraetive to the highest degree. Reautiful in desizn and workmanshin, Six large rooms. Two levely haths. Sereens. Insulated. everything. Built-in zarage. A modern electric health kitchen. Metal weather-striped. In fact. just about This new home may be purchased, subject to AN F.H.A. GOVERNMENT INSURED LOAN with & maximum monthly payment of $35.00. including interest, taxes, insurance. We invite your inspeetion. Directions: Out Wisconsin Ave. to Leland St., left to property. CYRUS KEISER, JR. " 5211 Wisconsin Ave. | Beautiful New Homes in One of = REAL ESTATE,. FIRM ANNOUNCES IMPORTANT SALES Apartment House and Store on List for 30 Days by Shannon & Luchs. An apartment house, & store leased to thé Great Atlantic & Pacific Tea Co., and several two and four family dwellings are included in & list of | sales by Shannon & Luchs during the past 30 days. ‘The sales reported follow: 3701 Thirteenth street, for the| trustees of Swartzell, Rheem & Hen- sey Co. to & local investor, This is a modern apartment house located on | the northeast corner of Thirteenth | street and Spring road and contains 23 units. | 331 Fifteenth street northeast, store | leased by the Great Atlantic & Pacific | ‘Tea Co. for three years with seven | one-year renewal options, sold for' George B. Willlams to & local investor. 415 East Leland street, Chevy Chase, Md, sold to Mr. and Mrs. Frank H. H. Roberts, jr. Lot on the northwest corner of Kanawha street and Chevy Chase Parkway, sold to a local builder for & new home, 432 Eighth street southwest, a four- family dwelling sold for the Fidelity Mortgage & Investment Co., to & local investor. 2706 Woodley place, purchased by Mrs. Jennie Lynch Chamblain from Mrs. Mary L. Duke, 45 V street northeast. sold for George T. Hutchinson to Mr. Vincenzo Dellamonica, 1331 Neale street northeast, a two- family dwelling, sold for Eugene and Helen M. Casey to a local investor. 1726 Tuckerman street, sold to Sylvia Bellman for William A. Hettinger, trustee, 1745 North Capitol street, pur- chased by Mr. and Mrs, Malcolm H. White from Ralph E. Van Allen. 628 D street northeast, sold for Thomas M. Hoyle to Mr. and Mrs. Irving Ray Clark. 416 Kenyon street, sold for the re- ceiver of the Park Savings Bank to Mrs, Pauline 8. Elgin. FOR SALE A Tapestry Brick—Semi-Detached IMMEDIATELY 3626 Nor A few blocks dral. sleeping porch Apply JOHN POO Chandler Building Six rooms north of / AVAILABLE ton Place the Cathe- — bath — heated — built-in garage. LE 1429 Eye St. N.W. Telephone Nat. 4575—Nat. 9666 An En With Many Un Now Being Type Brick usual Features Completed $11,700 ® 6 Rooms ® 2 Baths ¢ Finished ‘This charming English-type home is beautifully situated in a delightful sec- tion of Chevy Chase. Six large rooms, including breakfast room, 2 magnificent baths with detached garage. The con- struction of this home is of the best. At~ tractive brick with finished attic, slate roof, Attic bery. 0 TO out rock wool insulation, landscaped yard with plenty of shrub- steel sash, pen Daily and Sunday REACH—Drire ont Comnecti- Ave. to Chery Chase Circle, turn right on Rittemhouse to 2905. Better Built by CHAS. STURBITTS J. Wesley Buchanan, Inc. REALTORS 916 15th St. Washington’s Most Aristocratic Sections « « . cation, and low price, we say— SPECIAL FEATURES: @®Semi-Detached Brick Homes with 16 feet between houses. OFurred walls. OFrench paneled Sanitas walls ih living room, dining room, kitchen and hall. Entire basement plestered. oStage with fluted columns, in recreation room, which has furred walls to protect against dampness, heat and cold. OAll millwork framed in. ©Gas Heat. @7-Cube Norge Refrigeration. Garage. Large Bed Rooms. High-tiled Baths. ®Landscaped front yards with stone retaining walls. New home of distinction, located on a street which cannot be excelled. Instant appeal to those desiring something different and better at a price below today’s market, Covered rear ferrace; first-floor lavatery adjoining study; spacious hall and truly ouistanding staircase; 3 bright, well-ventilated bed rooms; 2 baths; remarkable recreation reom on grade; maid’s room and bath; 2-car built-in garage. OPEN SATURDAY AND SUNDAY. ELLICOTT STREET, TURN EAST TWO BLOCKS TO END OF STREET s Clatic v HEALTH HOME DRIVE OUT CONN. AVE. TO "o SEE YOUR BROKER OR CALL OWNER, ADAMS 9522J And considering the quality Exhibit Home—2706 Courtland Place | You ean go from one end of the city to the other without finding | features as are offered in these new creations of Brown Bros. froup of seven were sold in seven weeks! o4 a home with so many desirable, up-to-date Seven built—two =old already! The last of workmanship and materials, Compare these home values with any others in the city Think of living in the exclusive Woodley Park sec- tion, just off Connecticut Avenue, bordering on Rock Creek Park and famous $50.000" estates, yet paying no more than you would to live in less desirable loca- tions! penalty of a high price! morrow! OWNERS BROWN BRO i COlumbia 1755 Think of the freedom and pleasufe of owning a semi-detached brick home with all the ultra-modern features described to the left, without paying the You owe it to yourself to inspect these homes without delay—come out to- Place and nuu_mms e ME. 1143 To Reach— Drive oul Conn. Ave. Warren Apts. at Cortland to Kennedy- houses.