More for Mortgages

One of the first New Deal agencies was Home Owners' Loan Corp., formed to furnish urban mortgage relief by issuing its bonds in exchange for distress mortgages. Under John H. Fahey, a New England publisher, banker and shipbuilder, HOLC has lifted almost one-fifth of the U. S. home-mortgage burden, has brought relief to 862,000 small homeowners. Last November, with $2,000,000,000 of its $3,000,000,000 capitalization already dispersed and 400,000 cases pending to use up the rest, HOLC suspended all applications for loans. By March, 30% of HOLC's debtors were "a few weeks" behind in their interest payments, 16% were 90 days in arrears. Nevertheless, HOLC has instituted only 386 foreclosures, has strengthened many an insurance company by taking over wobbly real estate assets, has helped many a municipality by paying up back taxes on distressed property.

Last week Congress passed and, without comment or ceremony. President Roosevelt signed, a bill providing HOLC with another $1,750,000,000 for further Federal mortgage lifting. For the next 30 days HOLC's credit doors will again be open to qualified applicants.

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