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tf \ ! / • 4s8© ^^« TI fice Correspondence Governor Eccles J. M. Baigerf ( V > / FEDERALL RES RESERVE B0ARD Subject: Date Probable objection to.proposed change regarding amortization /V Someone will probably challenge the comparison of the amortization provisions in the Glass Committee's proposal with those authorized ty Congress for loans made by Federal Savings and Loan Associations and loans insured by the Federal Housing Administration. The objection will be made that in these latter cases the 20-year period was set because loans are authorized up to 75 per cent and 80 per cent respectively of the appraised value of the real estate* The answer to this is that the 60 per cent limit on bank loans would warrant a longer rather than a shorter period for amortization. If 75 or 80 per cent is good for 20-year amortization, 60 per cent is better•