Show I I I I 4 HOME CREDIT BILLS PUSHED By Dy WILLIAM WILLIA I F. F KERBY KERRY United Press Staff Correspondent W WASHINGTON April 14 14 Congressional leaders today pledged prompt enactment of the administration proposal proposal pro pro- to bring billions of federal credit cred- cred it t to the aid nid of pressed hard-pressed small home owners President Roosevelt's newest relief program certain of passage at the present emergency session has a double doule dou dou- ble le purpose To dispel from millions of citizens the specter of a foreclosed mortgage and loss of lifetime savings sa To give much needed liquidity to financial institutions carr carrying ing a burden burden bur- bur den too heavy for the present disturbed dis dis- economic conditions In order to accomplish these results re re- re a suIts a major step in iii the presidents president's general jeneral program for recovery recovery the the federal government will be authorized author author- zed to step into the breech with a credit pooLA pool A new credit agency authorized to issue of bonds will willbe be prepared je d i if necessary to take over the hc mortgage of every small home hom-e threatened with foreclosure In addition addition addi- addi tion ion new building and loan associations associations ions with a federal capital of will be organized to encourage encourage encourage age savings with safety lafety and provide financing for new v home building Congressional leaders lenders immediately acted to put the plan on the way toward to toward ward enactment bills were introduced by Senate Democratic Leader Robinson and Chairman gall of ot the house banking and currency currency cur cur- rency committee The new Robinson bill places a direct appropriation appropriation ap ap- ap at the disposal of ot the new credit agency to be called the Home Continued on Pale Paie Two Two HOME CREDIT BILLS PUSHED I Continued From Front race Pase One Onet Owners' Owners Loan corporation This or or- would be bc authorized to Isue issue Is Is- ue sue bonds amounting to more With this fund It could takeover take takeover over vcr mortgages on individual homes valued up to substituting the I bonds for the private mortgage investment in in- in vestment Bonds exchanged for mortgages mort I gages would be limited to 80 per cent of the value of the home as appraised by the The holder of the obligation In default de de- de- de fault Cault would thus obtain in exchange a s security backed by a federal ag agency ncy and at the same time the home own own- er r would be refinanced The bond bond- holder hoIder would receive 4 per cent in in- terest crest The home homo owner would pay the I I government 5 per percent cent Three-fourths Three of ot American horns home are In iri the tho class which may claIms re te- lief under the new bill Home m moru mOrt 1 gages now tot total 11 j but administration spokesmen cx tx ex pressed confidence that the credit f I pool provided would be more than i ample to take care of all that face 4 f foreclosure and cannot be refinanced t privately i 4 In branching out to establish th the federal savings and loan the measure would provide credit and savings facilities for many 1 communities where they are now now flow lacking They would be similar to the familiar privately owned building and 3 loan associations but would be organized or 1 at least partially with governmental gov gay capital capita |