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HOME OWNERS' LOAN CORPORATION
WASHINGTON, D. C.

FEDERAL RELIEF FOR
HOME OWNERS




UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933




TO THE PUBLIC
In the effort of the Administration to provide immediate and direct
relief to home owners, Home Owners' Loan Corporation has been
created by the Government to deal directly with them individually.
This Corporation'has very great resources, but the total home-mortgage indebtedness of the people of the United States is very, very
far beyond its total resources. Therefore, it is altogether necessary
that mortgage lenders continue to carry most of the mortgages held
by them and it is necessary that most home owners continue to pay
under their present mortgage arrangements. If this is done it will
be possible for this Corporation to relieve a great deal of distress
which cannot be relieved by private lenders alone and to save a very
great number of American homes to their owners who would otherwise
lose the same.
This leaflet is written for the information of the public and I appeal
to mortgage lenders to be as liberal with home owners as is possible
and to all borrowers to make all payments possible on their homemortgage indebtedness.
The managers of this Corporation are directed not to disturb normal
home-mortgage loans but to exert every effort within the resources of
the Corporation to save home owners from the loss of their homes
due to unemployment or other unforseen conditions.
W. F. STEVENSON,

Chairman oj the Board,
Home Owners' Loan Corporation.
WASHINGTON,

D.C.,

August 24,1933,
10125°-33




(HI)

ORGANIZATION
Home Owners' Loan Corporation, Commerce Building, Washington, D.C., is a relief agency provided by law for relief to home owners,
and will operate from its office at the above address but will have
State managers and assistant managers in every State and Territory
in the United States who will have all of its forms for application for
loans and the handling of the same. Home owners should take up
their problems with these managers of the Corporation in their own
territory.
HOMES TO BE DEALT WITH
The relief available is for home owners who use their property as
their home, although property may be dealt with which is the home
place of the owner in cases where he is temporarily residing elsewhere. The Corporation is not to deal with commercial rent property. Such homes may be located inside or outside of an incorporated
city, town, or village. For the financing of ordinary farm loans, the
owner should apply to the Federal land bank of his district or to the
Farm Credit Administration, Washington, D.C. Homes are not excluded on account of an incidental use, such as gardening or light
farming or the use of a part of the premises for business. No property
can be dealt with which was built for more than four families nor if
it has a value greater than $20,000.
PROCEDURE
Home owners should apply to the manager of Home Owners' Loan
Corporation nearest the property to be dealt with, who will fully
explain whether or not relief can be extended under the Federal
statute. If the present holder of the mortgage will accept the bonds
of the Corporation for his mortgage or claim against the property,
the Corporation can refund mortgages up to 80 percent of the value
of the property or up to $14,000, which ever is smaller. It can take
up second mortgages or other liens against the home with bonds,
along with the first mortgage, and use cash to pay taxes or assessments, and make advancements for necessary repairs or maintenance,
provided all advancements in bonds and cash do not amount to more
than 80 percent of the value of the property. It is the primary
purpose of the act of Congress to refund home mortgages by this
process and it is hoped that all parties will cooperate to this end. The
Corporation will have $2,000,000,000 of bonds and only $200,000,000
of cash, and it is clear that it cannot liquidate in cash any large part
of the more than $20,000,000,000 of mortgages now owing on American
homes, and that most lenders, if they wish to refund, will be required
to take bonds. The cash available is about 1 percent of all the home
mortgages and the bonds available are about 10 percent of all home
mortgages.



(1)

CASH LOANS TO TAKE UP MORTGAGES
Where the lender refuses to accept bonds for his claim, the Corporation can advance cash to take up mortgages, provided the total
outstanding indebtedness does not exceed 40 percent of the value of
the property. It is hoped that home owners and their lenders, where
the mortgage debt is not more excessive than 40 percent, will work
out their own problems so that the cash of the Corporation may be
preserved to pay taxes, assessments, etc., in cases of real distress
where the Corporation is financing the home up to 80 percent with
bonds. Furthermore, it is hoped that such home owners, where the
lenders are calling the mortgage, will obtain their loans from ordinary
lending agencies so that the Federal funds may be preserved for the
saving of homes which are really in distress.

CASH LOANS TO TAKE UP TAXES, ETC., ON
UNINCUMBERED HOMES
The Corporation can advance upon homes otherwise unincumbered
not exceeding 50 percent of the value thereof to take up taxes, assessments, and for necessary repairs and maintenance. Again it is hoped
that such home owners will procure such funds from ordinary lending
agencies where they are able to do so, so that the Federal funds may
be made available for home owners in the greatest distress.
LOANS TO RECOVER FORECLOSED HOMES
The Corporation may advance bonds and cash for taxes, etc., to
recover homes already lost by their owners within 2 years from the
time of such advance, whether the home be lost by foreclosure, sale
under trust deed, under power of attorney, or by voluntary surrender
to the mortgagee. Of course, in this case the present holder of the
home would be required to accept bonds for his property as he would
be required to do if he still held the mortgage.
APPRAISAL
The relief legislation directs that the Corporation adopt rules for
the appraisal of property to accomplish the purposes of the Act.
The Corporation will not depend upon the technical market value.
On the other hand, it will give equal weight to (1) present market
value; (2) cost of reproduction of the property, less depreciation; and
(3) a -capitalization of, the reasonable monthly rental value of the
property; over a period of the past 10 years. It will be the effort of
the Corporation to arrive at the fair worth of the home to the home
owner or to a family to whom such property would be suited as
a home.
LOAN TERMS
Loans refunded by the Corporation will be carried or refinanced
for a period, of 15 years and will be required to be amortized over that
period by equal monthly payments. These payments, sufficient to
pay interest and retire the principal in 15 years, will be about $8 per
thousand of indebtedness per month. The home owner may pay a
monthly payment sufficient to pay interest only until June 1936, if



he desires, but thereupon will have to make a larger monthly payment in order to retire the loan in the time required. It is the desire
of the Corporation to have all loans paid off monthly, if fios^lble, for
the reason that this method is more sound and economical home
financing and is better for the home owner, but loam may be made,
amortized over the same period and in the same manne r by quarterly,
semiannual, or annual installments if the necessities of the home owner
require it. Loans refunded with bonds and loans made to pay taxes,
etc., will be carried at a rate of 5 percent per annum on the unpaid
balance. Loans to take up mortgages in cash will be carried at the
rate of 6 percent per annum on the unpaid balance. The home owner
will be required to execute the usual form of note and the usual form
of instrument to secure the same, requiring the borrower to pay all
future taxes and assessments and keep the property fully insured and
to maintain the same.

HANDLING OF LOANS AFTER CLOSING
Regular payments must be made to Home Owners' Loan Corporation, Commerce Building, Washington, D.C., by post-office money
order, bank draft, or certified check, payable at par in Washington,
D.C. The Corporation will have power to extend payments upon
written application and upon a reasonable showing, as other lenders
can do. However, the only way to own a home is to get it paid for,
and borrowers are urged to keep up the payments under their contracts so that they will get out of debt. The Corporation will be
compelled to foreclose eventually, if payments are not made, as other
lenders of money foreclose.
PRESENT HOLDERS OF MORTGAGES
Many people in the United States have laboriously saved money
and through their practice of thrift accumulated more than 20
billions of dollars, most of which is loaned out by mortgage lending
institutions on homes. It is not the purpose of this relief legislation
to injure these thrifty savers of money in any way. On the other
hand, every effort will be made to administer the same so as not to
injure them. The accumulated funds for home mortgage lending at
the present time is not sufficient to finance American homes. Every
effort will be made to encourage the present home mortgage lenders
to continue their operations and to make all the sound loans they
have funds to make. It is hoped that this relief legislation will take
up enough distress in the mortgage market and relieve enough home
owners who are now hopelessly involved so that these home owners
will now feel better and the holders of their mortgages will feel in a
better position, and that thereby the market for homes will be relieved
of this burden of distress and will be improved. All borrowers on
their homes are urged to continue their present financing if they are
able to do so and not to seek the refinancing of their mortgages unless
they are compelled to do so in order to save their homes. Present
lenders and present borrowers can assist greatly in the relief program
if they will continue in a normal way and thereby enable Home Own-*
ers' Loan Corporation to serve in cases of the utmost distress and save
homes which would otherwise be lost to their owners.



4
BONDS
7

Home Owners Loan Corporation has available $200,000,000 of
capital subscribed in cash by the Secretary of the Treasury of the
United States and can issue a maximum of only $2,000,000,000 of
bonds. It will therefore have at least 10 percent cash capital of its
total maximum outstanding bond issue, and if it issues a smaller
volume of bonds, its cash capital will be a higher percentage and will
further strengthen the bonds. It will have a spread between its bond
interest rate and its loan interest rate of 1 percent on all mortgages and
2 percent in all cases where it takes up mortgages in cash. It will
therefore have a gross income, after bond interest, if it issues its maximum in bonds, of at least $20,000,000 per annum, and more, depending upon the amount of 6-percent mortgages it acquires plus the
return on its capital which at 5 percent will produce $10,000,000,
making a total possible gross income after bond interest of $30,000,000
or more. It is thought that its gross income will pay all expenses
and create a large surplus to absorb a very large amount of losses.
It is true that the Corporation will finance up to 80 percent of value
where it uses bonds, but it will also have a great many mortgages
representing 50 percent of value or less, and a good many representing
40 percent of value or less. Furthermore, a mortgage representing
80 percent of value at this time, after all, is about as good as the best
mortgages made by conservative lenders 5 years ago. Therefore, if
the assets of present mortgage lending institutions are sound, then
the assets of Home Owners' Loan Corporation should be sound and
its bonds should be good. The bonds are guaranteed as to interest
by the United States, and are exempt from every kind of taxation
except surtaxes, inheritance, estate, and gift taxes. Furthermore,
the value of the bonds will be held up by the fact that any person
indebted to the Corporation may pay his debt with the bonds at
face value.




Offices of Home Owners1 Loan Corporation
State

City

Alabama

Birmingham Educational Building, Sixth Avenue and
Twenty-second Street.
Montgomery, Bell Building, Ninth Floor.
Mobile, Customs Building.

Arizona

Phoenix, Professional Building.

Arkansas

Little Rock, Donaghey Building.
•Pine Bluff, Simmons National Bank Building.
Jonesboro, American Trust Building.
Fort Smith, Merchants National Bank Building.
Texarkana, City HalL

California

Los Angeles, 639 South Spring Street and 612 South!
Spring Street.
Fresno, 1146 Fulton Street.
Oakland, Security Building.
Sacramento, Bryte Building, Seventh and J Streets.
San Diego, 1030 Sixth Avenue.
San Francisco, City Hall.

Colorado

Denver, Federal Building.
Colorado Springs, Federal Building.
Grand Junction, Federal Building.
Pueblo, Federal Building.

Connecticut

New Haven, Hall and Records Building.
Hartford, Post Office Building, 135 High Street.
Waterbury, Post Office Building.
Bridgeport, Stratfield Hotel Building.
New London, 330 State Street.
New Britain, 120 West Main Street.

Delaware

Wilmington, 200 Odd Fellows Building, Tenth and King.
Dover, State Street.
Georgetown.

District of Columbia-- Washington, Shoreham Building.
Florida

Jacksonville, Graham Building.
Miami, Old Federal Building.
Tampa^ First National Bank Building.
Orlando, Phillips Building.
Pensacola, Brent Building.

Georgia

Atlanta, Western Union Building.
Albany, Davis Exchange National Bank Building.
Macon, City Hall.
Savannah, Citizens and Southern National Bank Build*
ing.

Idaho

Boise, Federal Building.

Illinoi

Chicago, 134 North La Salle Street.
Peoria, 208 Federal Building.
East St. Louis.
Rockford, Federal Building.
Springfield, Rigely Farmers Bank Building.
Champaign, 312^ North Hickory Street.
Harrisburg-Cairo, City Hall, Harrisburg.
Rock Island- Moline, 501 Fifteenth Street.




6
Offices of Home Owners' Loan Corporation—Continued
State

City

Indiana

Indianapolis, 150 East Market Street.
Fort Wayne, Federal Building.
South Bend, New Federal Building.
Eyansville, Second and Sycamore Street.
Richmond (substation), 35 North Ninth Street.
Hammond (substation), 5243 Hohman Street.
Terre Haute (substation), 718 Ohio Street.

Iowa

Des Moines, Federal Office Building.
Davenport, Citizens Bank Building.
Fort Dodge, 619 Central Avenue.
Sioux City, Commercial Building.
Dubuque, Federal Building.

Kansas

Topeka, Aetna Building.
Chanute, Fidelity Bank Building.
Salina, North Seventh Street.
Wichita, Schweiter Building.

Kentucky..

_ Louisville, 231 South Fifth Street.
Covington, First National Bank Building.
Lexington, Security Trust Building.
Paducah, City National Bank Building.

Louisiana

New Orleans, Louisiana Bank Building.
Alexandria.
Baton Rouge, Post Office Building.
Lake Charles.
Monroe, Ouachita Bank Building.
Shreveport, 216 Milan Street.

Maine

Waterville, Professional Building.
Augusta.
Bangor, Coe Building.
Lewiston, 215 Lisbon Street.
Portland, 110 Exchange Street.

Maryland

Baltimore, 301 Post Office Building.
Cumberland, Post Office Building.
Easton, Masonic Building.
Hyattsville, Metropolitan Building.
Towson, 103 West Chesapeake Street.

Massachusetts

Boston, Shawmut Bank Building, 82 Devonshire Street.
Worcester, Federal Building.
Springfield, 420 Federal Building.
Fall River (substation), Post Office Building.
Salem (substation), Post Office Building.
Lawrence (substation), Post Office Building.
Greenfield (substation).
Pittsfield (substation).
Framingham.
New Bedford.

Michigan

Detroit, 1615 Barium Tower Building.
Battle Creek.
Grand Rapids.
Saginaw.
St. Ignace.

Minnesota

St. Paul, Bremer Arcade.
Duluth, Federal Building.
Minneapolis, Metropolitan Life Building.




7
Offices of Home Owners' Loan Corporation—Continued
State

City

Mississippi

Jackson, New Merchants Bank Building.
Meridian, Threefoot Building.
Hattiesburg, 208 West Pirxe Street.
Greenwood, 109 Fulton Street.
New Albany, Court House.

Missouri

St. Louis, 903 Buder Building, 7th and Market Streets.
Kansas City, R. A. Long Building.
Springfield, Post Office Building,
Moberly, Library Building.

Montana
Nebraska

Great Falls, Wade George Building, First Avenue.
Butte, Hirbour Building, Broadway and Main Streets,
- Grand Island, Yancey Hotel.
Lincoln, Sharp Building.
Norfolk.
Omaha, World-Herald Building.
Scottsbluff.

Nevada

Reno, Arcade Building, 120 North Virginia Avenue
Elko.
Las Vegas.

New Hampshire

Manchester, 1028 Elm Street.

New Jersey

Trenton, Post Office Building.
Jersey City, 921 Bergen Avenue.
Newark, 911 Franklin Street.
Camden, Post Office Building.
Hackensack, Main and Mercer Streets.

New Mexico

Albuquerque, Federal Building.
Roswell.
Las Cruces.

New York

New York City, 406 Empire State Building.
Albany, Drislane Building.
Buffalo, Liberty Bank Building*
Brooklyn, Post Office Building.

North Carolina

Salisbury, Post Office Building.
Raleigh, Wachovia Bank & Trust Co. Building.
Ashville, New Medical Building, 31 Market Street,
Greenville, Federal Building.

North Dakota

Fargo, Federal Building.
Grand Forks, American Building.
Minot, Federal Building.
Bismarck, Federal Building.

Ohio

Columbus, Wyandotte Building.
Columbus Branch, 180 North-High Street.
Cleveland, Williamson Building.
Akron, 640 North Main Street.
Cincinnati, Keith Building.
Toledo, Northwest Savings Association Building.

Oklahoma

Tulsa, Fourth National Bank Building, Fourth and
Boulder Streets,
Oklahoma City, Perrine Building, First and Robinson
Streets.




8
1

Offices of Home Owners Loan Corporation—Continued
State

City

Oregon

Portland, Post Office Building.
Klamath Falls, Federal Building.
Eugene, Miner Building.
La Grande, Federal Building.

Pennsylvania

Philadelphia, Schafif Building, Fifteenth and Race Streets.
Harrisburg, Allison-Hill Trust Building.
Pittsburgh, Benedum Trees Building.
Scran ton, Federal Building.

Rhode Island

Providence, Hospital Trust Building.

South Carolina

Columbia, National Loan & Exchange Bank Building.
Spartanburg, 187 North Church Street.
Greenville, Palmetto Building, South Main Street.
Charleston, Peoples Office Building, 18 Broad Street.

South Dakota

Sioux Falls, Federal Building.
Rapid City, Court House.

Tennessee

Nashville, Stahlman Building.
Chattanooga.
Knoxville.
Memphis.

Texas

Dallas, Old City Bank Building.
San Antonio.
Houston.
Amarillo.

Utah

Salt Lake City, 916 Boston Building.
Ogden, 220 Federal Building.

Vermont

Rutland, New Post Office Building.
Burlington, City Hall.
Montpelier, Blanchard Black.
Proctorsville, Fraternal Building.

Virginia

Richmond, Richmond Trust Building.
Alexandria, Post Office Building.
Bristol, Dominion National Bank Building.
Danville, Municipal Building.
Harrisonburg, National Bank Building.
Norfolk, Old Telephone Building, 406 Plume Street.
Roanoke, Federal Building.
Lynchburg, Federal Building.

Washington

Seattle, 1411 Fourth Avenue Building.
Spokane, 310 Columbia Building.

West Virginia

Charleston, Masonic Temple Building.
Bluefield, Law and Commerce Building, 307 Fedaral
Street.
Huntington, Lecco Building.
Martinsburg, Wiltshire Building.
Wheeling, Riley Law Building.

Wisconsin

Madison, 1 West Main Street.
Eau Claire, Federal Building, 510 South Barstow.
Milwaukee, Federal Building.
Oshkosh, Federal Building, 80 Washington Boulevard.
Wausau, Federal Building, 402 Scott Street.

Wyoming

Casper, Producers and Refiners Building.
Cheyenne, 406 Boyd Building.




HOME OWNERS' LOAN CORPORATION
OFFICERS—WASHINGTON
Board of Directors
WILLIAM F. STEVENSON, Chairman
JOHN H. FAHEY
RUSSELL HAWKINS
WALTER NEWTON
T. DWIGHT WEBB




Secretary and General Manager
A. E. HUTCHISON
Assistant General Managers
W. P. GOODMAN
JAMES A. HOYT
Treasurer
PATRICK J. MALONET
General Counsel
HORACE RUSSELL

o


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102