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COMMITTEE
INTERSTATE AND FOREIGN
COMMERCE

Congress of tfje Untteb
^oufic of £\eprc6entattUes
IHasijingion, 53. C.

1/17/40

I wish to quote tlia pertinent part o£ A l a t t e r
I have received fros !!r. Glover 'Itasnell, President,
Heal tors Association, tjrlar, Texas:
problera that I spoak of ia the loans for
tho veterans i n buying hon*;®# Tha oidstii^ costpanies wlio have bmm omklr)g the loans have just
about a l l quit, that i s the 0 , 1 . loans, therei t i s giving us a very serious problea in
hosess for the veterans.
All local Building and Loan Companies and
are ovsir-run, 00 to upeal:9 with loans, and
practically a l l the insurance cot^anies hav«
gotten so very imrtioilar in ^tat Tow loans they
are making, that vm t m i practically no pla<^ to
finance these s a l e s .
T:Q a l l r<3alise tM% our ^ovorroant i s over
burdandd trependouoly, but i t looks as though
unless ijtm govoniaent sots up an agency to nake
those loans t^io^elves, that ^e aro soon going
to be confronted -sitli t l ^ G.I. Bill of m^its
being coaplotoly worthless.
I certainly cto not isant you to aisundoi^stand
and think that I nake this appeal for a selfish



COMMITTEE:
INTERSTATE AM> FOKEIGN
COM M MCE

of tfje Uniteb
of IXepregentat
IBastjington, S . C.

raaaon, bat as Pr^aiOent or the I^ier Realtors
Association I feel tlmt i t i s n&- duty to at least
jive you a fairly true picture or this existing
situation."
consideration you nay giv» Hr. Tunnoll will
be appreciated.

Sincerely,

Linul^Beckirorth, M.n.
LBiiatn




January 21, I9I4B
The Honorable Ldndley Beckworth,
House of Representatives,
Washington, D. C.
Dear Mr. Bookworth:
ia to acknowledge your letter of January 17 quoting
the pertinent part of a letter from Mr. Glover Tunnell, President
of the Realtors Association of Tyler, Texas«
His oosuaents confirm reports I have had from various parts
of the country. At a time like tiiis, it is a healthy development to
slow up and diminish the oxceaaive demand lhiah has so greatly inflated housing costs. You might care to send Mr* Tunnell a copy of
the enclosed statement which 1 made recently on the housing situation, which has led me to the following conclusions:
le There should be no further authorisation of mortgage
insurance under Title VI of the National Housing Act except
for multiple-unit rental projects. For such rental projects
the maximum insured mortgage should be 90 per coat of longterm stabilized value*
2* Government insurance of mortgages for the purchase
of old houses, except by veterans, should be suspended. Appraisala for insured or guaranteed loans on both old and new
houses should be made by FEA, using the standards established
for insurance under Title II of the Mational Housing Act.
Mortgages should not be eligible for insurance or guarantee
if the total borrowing of the mortgagor exceeds 19,000*
As far as possible, these changes should be made by administrative regulation, but to the extent necessary, Congress
should be asked to authorize changes in present programs to
apply for a temporary period*
3* The so-called "warehousing plan" for GI loans made
by members of the Federal Home Loan Bank System should not
be adopted, and no other Government-financed secondary markets
for mortgages should be allowed to operate.




the Honorable Lindley Beckworth

-

(2)

January 21, I9I4B

Adoption of these three points would go far toward restraining further inflation in the real estate market and thus help to reduce inflationary pressures generally*
Sincerely yours,

U S. Boeles,
Ch&inaaa.

ET:b