Salt Lake Telegram | 1938-02-11 | Page 23 | Federal Mortgage Association May Spur Home Construction

Federal Mortgage Association May Spur Home Construction WASHINGTON Feb 11 1 AP AP-A AP A newly created national mortgage mortgage mort mort- gage association may lend up to as its it part in the administrations administration's administrations administration's ad ad- ministrations ministration's housing program officials of the Reconstruction Fi- Fi nance corporation said Friday The Te R F C created the association the the first of its it type type Thursday ThUrsday tye-ThUrsday Thursday with a a paid paid-in capital stock of 10 10 1 00 and a a paid paid-in surplus of 1000 It was empowered to issue debentures up to 20 times Us Its is capital stock Officials explained that the agency is Intended to demonstrate the part which financial institutions can play in reviving residential residental con con- The association will wi purchase and sell Bel first mortgages insured by the federal housing administration It Itis Itis I is designed in part to provide money for scale large projects project Chairman Jesse Jess H. H H Jones of the theR thea R a F C asked for cooperation from builders dealers and workmen and added A real building program will wl In Increase Increase In- In crease employment and stimulate business more perhaps than any other one thing ting that tat can be done Jones said the association would commence doing business on its capital issuing debentures for additional addi 1 tonal funds as the demand arose Similar associations may be set setup setup setup up by private individuals Officials said the freeing of some private capital invested in existing mortgages mortgages mortgages mort mort- gages would be an expected result result At the same time Jones said the theR theR R F C already has all al the authority it needs to make loans to small smal business men for their financing needs The government should not weaken weak weak- weal weal- en its is demand for adequate security on loans he said at his press con con- ference Many any of those at the small smal business business bustness busi bust ness conference he ho said were asling ask ask- ing ing the government to lend them tem money with no security for its it re re- re payment All Al R F C loans to business in the past pat he said were backed by enough collateral to give reasonable reasonable reason able assurance that the government government government govern govern- ment would not have to take tale a loss for bad debts debt