The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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