Evening Star Newspaper, June 1, 1935, Page 22

B—6 NEW HOME LOAN ACT IS CLARIFIED Bank Board Statement Out- lines Functions of Vari- ous Units. REA The Federal Home Loan Bank Board today issued a statement as to the effect of new Federal home loan act on the four agencies under its jurisdic- tion, and also to correct “widespread public misunderstanding” of the H. O. L. C. and the Federal Home Loan Bank System. The statement, which also ex- plained the functions of the four agencies under the board, is as fol- lows: 1. The Pederal Home Loan Bank Bystem, created July 22, 1932, is & permanent reserve credit structure in home mortgage finance, similar to the Federal Reserve System in come mercial banking. The present mem- bership of the 12 regional home loan banks includes over 3,250 privately managed home-financing institutions with over $3,000,000,000 in resources. It is the largest mortgage reserve sys- tem in the world. By making short or long-term advances at low in- terest rates to these members, the home loan banks serve the public by enabling the home-financing institu- tions to maintain a more liquid posi- tion, thus protecting their millions of investors and making A greater volume of funds available for home loans on liberal terms, for refinancing. construction or modernization. The home loan banks do not make direct loans to home owners. do not deal with cases of distressed home morigages and have no direct relation to the | Home Owners’ Loan Corp. Autherity Broadened. The new act broadens the powers of the Federal home loan banks by permitting them to make loans to non-members on the security of home mortgages insured under title II of the national housing act, and to make Joans to members on the security of obligations of the United States or of obligations fully guaranteed by the United States, or of amortized mort- gage loans up to 20-year maturity and up to $20.000 in amount. It makes up to $300.000,000 available for the pur- chase of bonds, notes or debentures | of the home loan banks, to expand their loanable resources. 2. The Home Owners' Loan Corp. 3¢ an emergency relief agency, created June 13, 1933, to refinance urban home owners who otherwise face foreclosure as a result of involuntary default on their mortgages. The corporation, confined strictly to instances of gen- uine distress, operates by giving the home owner a new mortgage loan, re- payable in monthly instaliments over a period of 15 years, paying off the original mortgage and other past-due liens through its own Government- guaranteed bonds. The corporation is | the only emergency agency supervised by the Federal Home Loan Bank Board, and the only agency of that board which makes direct loans to | home owners. | Bond Issue Raised. | ‘The new act authorizes the corpora- tion for a period of 30 days to accept new applications, and increases its total authorized bond issue from $3,- 000,000,000 to $4,750,000,000. Of the | additional authorization, $100,000,000 is available for necessary repairs and reconditioning of homes on which it holds mortgages. 3. Federal savings and loan asso- ciations are local, private, mutual thrift and home-financing institutions under permanent Federal charter, ope- | rating under uniform Federal super- | vision, examination and regulation. | They were provided for by Congress in June, 1933, to encourage thrift, and to increase the volume of private sav- ings available for local home loans on economical terms to borrowers of sound credit standing. Approximately 800 such associations have already been formed as new, or converted for- mer State-chartered, institutions in 650 cities in 43 States. All Federal | associations are members of the Fed- eral Home Loan Bank System and each of their investors is insured against loss up to $5,000. The new act strengthens previous legislation for the development of Federal associations. It makes up to $300,000,000 available, at the discre- tion of the Federal Home Loan Bank Board, for the purchase of Federal Home Loan Bank obligations, or for direct investment in Federal associa- tions, or in State-chartered institu- tions which are members of the Federal Home Loan Bank System, or are insured under the Federal Savings and Loan Insurance Corp., in order to amplify their resources for making loans to home owners in their com- munities. Protection Provided. 4. Federal Savings and Loan Insur- ance Corp. was created by Congress June 27, 1934. Every investor in a thrift and home-financing associa- tion insured by this corporation is protected against loss of his savings up to $5,000. Insurance is optional for State-chartered ouilding and loan associations, but mandatory for all Federal savings and loan associations. 8uch insurance is entirely different from the insurance of individual mortgages, available under Title II of the national housing act. The latter insures the lending institution against loss on its insured mortgage loans. The Federal Savings & Loan Insur- ance Coro, on the other hand, safe- guards every investor whose savings are placed in any thrift institution which it has insured. Institutions in- sured by the Federal Savings & Loan Insurance Corp. are not obliged to in- sure, under Title IT of the national housing act the individual mortgages which they make in lending to home owners. An insured institution is not required to be a member of the Fed- eral Home Loan Bank System. The new act reduces by 50 per cent the annual premium payment, and Marietta Park New—Detached—Brick $9,750 A value such as seldom offered Modern home, 6 rooms, bath, spacious porch. Bright, airy cellar. Large storage room. All on very large lot .(521177) in a fine, most convenient sec- tion, Be Sure to See 1380 MORE PLEDGES L ESTATE. F High School Tuesday night. ‘winner. money will be given away. | also the maximum annual assessment, | payable io the corporation by insured ! associations. It increases from 10| years to 20 years the period within which a 5 per cent reserve must be established by each insured institu- tion, and amends earlier legislation by permitting payment of dividends by insured associations, subject to the corporation’s approval, even when | losses have been charged against re- serves. Thus, the safeguards of insur- | ance are made available at lower cost to thrift institutions, to the direct advantage of their shareholders or de- positors. —_—— FOR MODERNIZATION Total Number, 3,087, Represent $842,250 in Property Re- habilitation Work. Washington Beiter Housing Cam- paign canvassers obtained 380 pledges from their door-to-door interviews with home owners during the past week, which represents the estimated equivalent of $73,000 in property mod- | ernizstion work. Miss Elizabeth Wheeler, P. H. A. field supervisor, reported that the workers made 6,044 visits to property | owners during the four work days of | the week. There were approximately | 100 men engaged in the canvass. | The figure for the week brougnt the | total pledges of the campaign to 3,087, who have promised to carry out $842250 in property rehabilitation work. More than 36,000 homes and commercial properties have besn vis- ited so far. Miss Wheeler added that 205 pledges were turned over to contrac- | tors this week. The breakdown on this | figure shows: 75 painting jobs, 15| carpentry jobs. 18 plumbing, 15 heat- ing and 82 calling for general con- | tracting work, Coiorfnl Rooms P:y. Bright, cheerful, colorful painted rooms add to the home a pleasure in living that is out of all proportion to | the cost of such renovation. . Metal Tubes in Radio. Metal tubes will be used in one manufacturer's Fall line of radio re- ceivers, Greater continued efficiency | is claimed for them. They are aot in. terchanageable with glass tubes. ! Nl‘w center-hall brick, slate roof. Located in one this rear with its I very mod price. Direction. on Edgemoor Lane 8T [ 314 Rittenhouse Street N.W. wm:-.r#:r...:m Open Today and Daily Ustil 9 P.M. Floyd E. Davis Co. Nat. 0352 733 12th St. N.W. e oe— 3619 Quesada St. | States—Ohio, Michigan, Illinois, In- | the American Institute of Real Ese | | tate Appraisers, discussed in detail 6811 FAIRFAX ROAD, EDGEMOOR, MD. Price $10,950.00 of the prettiest sections of Edgemoor. oak and hickory trees. Ont Wisconsin Ave. to Bank of Farrfax Road. L 5211 Wisconsin Ave. CYRUS KEISER, JR, Clev. 8371 THE EVENING STAR. WASHINGTON, D. C. SATURDAY, JOUNE T, 1935. AMENDMENT AIDS |MANY MATERIALS HOUSING LOAN LAW| - DECORATE BATHS Mortgage Holder Benefited |Linoleum, Rubber Tile and The victors in the District finals of the Better Housing Essay Contest for senior high achool students are shown here with H. H. Dearing, director of F. H. A. in the District. Seated, left to right: Patricis Parr of Western High School, who won second place in the girls’ division; Jeanne Gaines of Roosevelt High, first place winner; Mr. Dearing. Back row: Allan Brown of Western High, who finished first in the boys' division, and Walter Bastian of Roosevelt, second place The two first prize winners will be entered in the national finals June 15, when $2,700 in prize CARE IN CHOOSING APPRAISERS URGED Grade Crossing Problem Is Discussed at Realtors’ Meet. Extreme necessity for the selection in fixing damages in condemnation cases arising in the Federal Govern- ment's program of grade crossing elimination was emphasized at the regional meeting of realtors of five diana and Kentucky. Held at the Book-Cadillas Hotel, Detroit, this| week, | Max J. Rudolph, M. A, I, Cleve- | land, Ohio. former president of the Cleveland Real Estate Board and of the Ohio Real Estate Association. addressing the regional meeting ol‘ the technical problems involved in | such condemnation cases, and pointed | out that over payments might well run into millions of dollars, thus ser- | fously reducing the number of pro- | jects which could be carried out with the amount allotted to this program. “In grade crossing eliminations, the cost of labor and material can be closely approximated by construc- tion engineers, but damages to ad- | jacent property owners, a very im-! portant factor of the total cost, is impossible to estimate with a high degree of accuracy. Adjustment and | award of proper damages is & pro- cess 80 dependent upon human ca- price that results are well nigh un- predictable,” Mr. Rudolph said. “To | the extent which the Federal Gov-| ernment may participate in the pay- | ment of damages, it is of relatively high importance that these damages be held to the lowest possible level | consistent with justice to property owners. “The ill-prepared appraiser, through his ignorance of the problems which confront him, will tend to be over- liberal in this appraisal, lest through dissatisfaction of the property owner he be called to the witness stand to substantiate it. In the important national program of grade crossing rooms. ‘Two baths. You will enjoy An unususl home at & Bethesda. Left eft to property. Four Jarge bed | H. A. Official Greets Contest Winners The finals were held in Gordon Junior W. New ocenter-hall Colonial brick. First floor: 3 rooms, lavatory. Second floor, 3 bed rooms, 2 baths. Third floor: 2 rooms, bath, plastered and’ thoroughly insulated. Plastered basement and built-in garage. Finest eustom built construction. Splendid outlook. You will like it. Open. See Owner on Premises ~——Star Staff Photo. elimination, employment of the high- est talent in the appraisal fleld will | be vastly more than justified by re- sults obtained.” 9% OF HOUSES BRICK 7% land of Frame Construction. of Farm Homes in Mary- | Results of a farm housing survey | made in Maryland last year showed, by Including Interest in Bonds. While the velume of mortgage in- surance applications has been growing rapidly through the past several weeks, Administrator that administration’s been strengthened by an amendment to the national housing act. ‘This amendment provides that, upon foreclosure of an insured mortgage and face amount interest on the unpald principal of the mortgage at the rate provided by the bond from the date the holder instituted proceedings to foreclose the mortgage to the date of the delivery of the bond. Under the old terms of the act the holder would have received only & certificate of claim for this interest. ‘These debenture bonds are guaran- teed as to principal and interest by the Government when given in exchange for ;”nm issued prior to July 1, 1937, For the past several weeks the vol- ume of home mortgage insurance ap- plications by owners of one to four family dwellings has forged steadily ahead of the volume of modernization credits, it was stated. They have been averaging around $6,750,000 per week for the past four weeks. As of May 27 the home mortgage insurance applications totaled 13831 for $56,744,027. These applications, it was said, have run almost steadily at the ratio of 33 per cent for new construction and 67 per cent for existing structures. In addition to the home mortgage insurance applications, applications for insurance of low cost and limited dividend housing mortgages total more than $200,000,000. Insect Gun on Hose. Hand pumping is eliminated in a new, trigger-operated insecticide gun. among other things, that of 54,000 | It attaches to the garden hose, uses ' farm homes in the State, 9 per cent are made of brick and 77 per cent are of frame construction. It was also found that only 6 per cent of these houses have been erected during the last decade. Thirty {of thoroughly competent appraisers | per cent of the 54,000 homes are from 25 to 50 years old and 50 per cent are over 50 years of age. | stencils. The paste contains ao hydro- | Small Pipe Organs Available. | Music comparable with that of the | pipe organ can be had in achools, | small homes, etc., through a new elec- ‘ any water-soluble insecticide, ejects a penetrating, wide-angle spray. P New Etching Equipment. A simple method of etching initials on glassware, identifying marks on windshields, etc., is provided by a new etching compound and aluminum-foil fluoric acid. Enamel for Furniture. A new one-coat enamel, said to be tric organ, smaller than an upright | highly resistant to perspiration, is of- piano. organ. It is played just as is a pipe fered for use on steel office equipment, telephone, etc. NE OF THE SEASON’S OUTSTANDING BUYS & 6212 31st Street N.W. PRICE I8 ONLY $12,950 i OPEN SUNDAY,10TO9 DAILY,2TO 9 5 Do when Tage. Large room with fireplace Automatic storage water 7 ROOMS-3 BATHS A NEW CHEVY CHASE HOME you remember you paid this price Here 1s an amasing revelation of the present low market: Knotty pine ~den: Just several years aso for a row house? master other resl bedrooms: 2 floor. Wood-paneled recreation Full bath in basems heater. ~Brick Furred walls, insulated’ through Tot. beautifully’ landscaped. Jast on Rittenhouse St. from Chevy Chase Circle to Utah Ave. 'urn left ome block fo Jist Street, turm right to property. BOSS & PHELPS REALTORS GET THIS PICTURE THE long-term first mortgage 'L loans on Bernard Homes at Edgemoor, ‘Washington's most elite suburb, enables you to pay for a home on a monthly payment basis from 40% than rent. to 50% cheaper The best in weather- proofing, battoned in steel case ment windows, recreation rooms with open fireplace, finest Metal- late insulation, 2-car handyman’s garages, solid masonry and built to Edgemoor standards. Electric power in Washington is so cheap that you can afford the luxury of our all-electric kitchens in the Bernard homes. 5 BEDROOMS - - 2 BATHS They Are Available at 10,950 Open Daily and Sunday for Inspection To see these houses, drive ont Wisconsin Ave. to Montgomery Ave., at Bethesds, west on Monstgomery Ave. to Arlingion Rd. and Houses. A. J. GORE CO. 1508 H St. N.W. NAtional 0234 | Glass Tile Available for Modernizing. In modernising & bath room or con- ‘verting unused spaces into bath rooms or powder rooms, the home owner may choose between some 30 different ma- terials suitable for use on the walls and floors, the Plumbing and Heating Industries Bureau points out. Some of these materials are not new, but their use in the bath room is new. Among these mateérials are linoleum, wa ‘wallpaper, asbestos wains- coting, asphalt tile flooring, metal tile, rubber tile and glass tile, All of these materials, according to the bureau, are entirely practical for use in the bath room because of their molsture-resisting qualities. They are easily cleaned and are available in a variety of colors. Werk Not Expensive. The low cost of these materials, as well as the ease of application, makes them desirable for modernizing work. ‘They may be applied to existing walls without expensive preparation. In replacing obkolete equipment in | & bath room or in converting closets and hall ends into bath rooms, the majority of home owners wish to so apportion the budget that they will be assured, first of all, of the best plumb- ing fixtures they can get for the money. It is generally realized that the plumbing equipment is, after all, the most essential part of the bath | room modernizing job and that it is | not wise to purchase fixtures of in- ferior quality. ‘With the use of the smart and less expensive materials for the walls and floors of the modernized bath room, the home owner is enabled to have the better type of plumbing fixtures, and still have wall and floor mate- rials that are attractive, colorful and modern. As examples of the use of smart wall materials the bureau suggests Watch Next Saturday’s Real Estate Section for news about dILWoop| SEE THIS ONE! Real Bungalow Home 6605 Sth Street N.W. _ Bituated in one of the most at- tractive sections in Takoma Park, D. C. The house has five large rooms and glassed-in sleeping porch, open fireplace, tiled bath, hot-water heat, attic, large, dry cellar, laundry trays, oak floors, newly painted, screened and weather-stripped. The lot is 50 by 148 to alley, and is improved by shade trees, shrubs, ornamental stone wall across front. The back yard is inclosed by ornamental iron fence. Two-car. garage. Near schools, stores and playgrounds, Price, $8,500. Easy terms. Well Worth Your Inspection OPEN ALL DAY SUNDAY H. L. Thornton Owner-Builder Office, 6900 4th St. Oppesite Takoma Theater Office Phone, Ge. 2291 Home, Ge. 2811 REAL EST plumbing fixtures of & sunburnt cream set off against a background of light tan rubber tile with vertical bars of biack. An interesting contrast may be obtained by the use of black hori- sontal bars of rubber tile on the walls ATE. plece closet combination, both in lav- ender, are placed before silver-shaded wallpaper in which flowers bloom in- side diamond designs. Fittings and accessories are chromium plated, in the octagonal pattern. of the separate tollet alcove. The black shower curtain, black rubber tile floor combine to give the room un- usual smartness and modemity. The | rubber tile on the walls has a grain effect, Anether Combination. Some of the new materials may be effectively used in combinations as for | instance s floor covered with black | and tan rubber tile and a wall finished | with three shades of green glass tile, the deepest having s marble effect. ‘White plumbing fixtures in matched design and a green shower curtain are suggested., | Btriking as an example of the use of washable, waterproof wallpaper is a | first-fioor wash room in which a com- pact vitreous china 1 Owner Will Trade LARGE MODERN BUNGALOW 6606 Eastern Avenue Takoma Park, D, C. Vacant and entirely recondition- ed. Aimost an acre of sround. with shade and fruit trees. Hot-water heat.” copper screened’ throughout. Detached garsge. Cottage in rear Tented for $20 'per month. Will consider small_brick house south- bouse. Union Finance Company 916 Woodward Bldg. Nat. 7936, atory and one- $7,450 ttractive in appearance. beautiful, in wooded settint, electric kitchen, garage in basement. fireplace, onveniently located to schools and transportation. Y AND SUNDAY TILL 9 PM. isconsin ave., left on Georgetown rd., left on Cedar lane three blocks to property. A. C. BREADY, Owner. Phone Adams 10100, Apt. 201 new 5 hardwood fioor: In the SHeant of the Country Club Section ‘.I"'V’ - AR g e | Y A o, {29 GREENWICH FOREST > Distinctive Homes Before You Buy or Build A VISIT TO GREENWICH FOREST will 5 unfold the advantages of this restricted suburban community, in an unparalieled set- ting of natural beauty, with homes of quality construction on lots of 75 feet frontage by generous depth Homes of six and eight rooms, with twe baths, Electric Health Kitchen, oil burner, and 2-car garage now nearing completion . . . If you wish to build, we will design, finance and build your home to express your own ideas, with the same high guality construction and unlimited resources that give you more for your dollar. Prelimi- nary skeiches submitted without oblizgation . .. Greenwich Forest is only 20 minutes from the heart of the downtown section. and is close to schools, stores, churches and transportation. MANY NEW HOMES NEARING COMPLETION Open Daily and Sunday Until 9 P. M. DIRECTIONS: Drive out to trafic light om Wisconsin Ave. at Bethesda turn leit on Old Georgetown Road 3 blocks to Wilson Lane, lejt to Greemwich Forest. Phone: Wisconsin 5204, NEW DETACHED HOMES OF UNUSUAL DISTINCTION Values That Have No Equal on Today’s Market 2940 CORTLAND PL. N.W. MR MM HEALTH HOME $14,950 Open Daily and Sluudlym Unlily 9 PM. Drive out Conn. Ave. to Cathedral Ave., west on Cathedral 10 29th, north on 29%th one block to Cort- land, left to house. ONLY TWO AVAILABLE Woodley Park, a select dntown section where some of Washington's finest homes are situated, is a location that will have an instant appeal to the most discrimina These qual- ity built homes, at this price, are the outstanding rea} e offerings of the year . . . See them . . . Note their features and superiority of comstruction and CHQOSE YOUR FUTURE HOME BETWEEN THE TWO AVAILABLE IN THIS GROUP, bedrooms), three bathroom: First-floor atory. Insulated with balsam wool. Walls furred, flashings, gutters and downspouts are of copper. Quiet May oil burner, electric refrigeration, the latest kitchen equip- g featur They w them today. H.G.Smithy Co. 811 15th STREET NATL. 5904-.,