Evening star. [volume], October 08, 1932, Page B-2, Image 18

About Evening star. [volume] (Washington, D.C.) 1854-1972

Image provided by: Library of Congress, Washington, DC

                
Conservative Requirements
of U. S. Bank Plan
Are Described.
(Continued From Firet Page.·)
outstanding. This ^2,000 loan is 40
per cent of the $5,000 appraised value
of the home property wnich is the
original security behind tne loan. This
Is the maximum loan which the law
permits a member institution to obtain
from the bank.
"The Home Loan Bank having made
this advance of $2,000 to a member
building and loan association, now
holds the mortgage on which the
amount outstanding is $3,333. Against
this holding, following the provision
in the act for $190 security behind each
$100 in bonds, the Home Loan Bank
System can issue not more than $1,754
■worth of debentures. Tne relation be
tween the $5,000 value or the home
property and the $1,754 maximum pos
sible debentures is 285 to 100.
Safety of the Bonds.
"This example is taken to show the
safety of the bonds unaer the least
favorable conditions permitted by the
law. In a majority of cases the 60
per cent of the amount, outstanding on
ε mortgage which the bank is per
mitted to advance to a member as
sociation will bo less than 40 per cent
cf the value of the home, and con
sequently there will be an even greater
property value back of the bonds as
a rule.
"The provision of the law reads as I
follows:
" 'Any such advance shall be subject
to the following limitations as to
amount:
" 'If secured by a home mortgage
gi\en in respect of an amortized home j
mortgage loan which was for an orig- j
inal term of eight years or more, or in !
cases where shares of stock, which are j
pledged for security for such loan, ma
ture in a period of eight years or more. I
the advance may be for an amount not
ill excess of 60 per centum of the un- I
paid principal of the home mortgage
loan: in no case shall the amount of j
the advance exceed 40 per centum of j
the value of the real estate securing the
home mortgage loan.
" 'If secured by a home mortgage
given in respect of any other heme
mortgage loan, the advance shall net
be for an amount in excess rf 50 per
centum of the unpaid principal of the
home mortgage loan: in no cpsc shall |
the amount of such pdvance exceed 30
per centum of the value cf rho real es
tate securing the home mortcpge lian.
" 'No home mortgage shall be ac
cepted es collateral security for ai p.d- j
vance by a Federal Loan Bank if, at the
time such advance is made, (1) the j
home mortgage loan secured by it has
more than 15 years to run to maturity j
or (2) the value of the real estate with
respect to which the heme mortgage is
given exceeds $20,000 or (3) Is past due
more than six months when pre
sented.'
Direct Users of Funds.
"The direct users of the funds pro- !
Tided by the bonds will be the member
institutions of the Home Loan Banks, I
building and loan associations, insur
ance companies and savings banks, j
Their obligations to repay their borrow- ;
ings from the Home Loan Banks is sig- j
r.incant in outlining the safety of the |
bends. These borrowing institutions, j
in addition to pledging mortgages worth
166 2-3 per cent to 200 per cent of the ,
loan they obtain,, give the bank a note |
on all their assets. In addition, the stock
which the borrowing institution owns
in the regional Home Loan Bank will
revert to the bank in case of failure of
the borrower to repay. Here, then, is
a major obligation placed upon the first
borrower of the funds. In this connec
tion, it should be noted that building
and loan associations have borrowed
from commercial banks for many dec
ades, giving as their sole security a note
against the total assets. No case is on
record where any bank ever lost money
on such a loan.
"The borrowing association in turn
lends the funds to an individual home
owner. It expects him to repay the
mortgage in order to pay back its own
borrowings from the Home Loan Bank.
What are the odds that the home owner
will pay? A look at the records of
building and loan associations over a
period of 101 years' operations is ex
cellent testimony to the good faith of
the home borrower. These associations
have confined their operations to the
financing of homes. During the past
decade, for which we have exact rec
ords. it is found that 99.95 per cent of
the total assets of the building and loan
associations were absolutely safe.
First Obligation.
"The first obligation securing the
bonds is that of the borrowing institu
tions. Before this institution can de
fault on its obligation its total assets,
plus its capital stock in the bank, would
have to be less than the amount of its_
borrowings. Even if such an incon-'
ceivable condition should occur, then
the Home Loan Bank still has recourse
to the home owner, because it holds his
mortgage. If the home owner falls
down on the bargain, there is property
worth nearly 3 to 1 of the outstanding
debentures on which the regional bank
has a first lien. And there is a yet fur
ther bulwark back of these bonds. All
of the assets of the 12 Home Loan
Banks are liable for the repayment of
money invested in the securities issued
by the system. In short, all 12 of the
banks would have to fail, a great ma
jority of the home owners in the coun
try would have to default and the
building and loan associations would
have to change their 101-year record of
safety before a bondholder in the Fed
eral Home Loan Bank system would
lose a cent."
Tennessee collected $27,000 in a sin
gle month this year from her 15 toll
bridges.
HOME LOAN DIRECTOR
ONCE HEADED REALTORS
Harry S. Kissell of Springfield,
Ohio, Appointed to Federal
Bank Board.
Harry S. Kissell, Springfield, Ohio,
who has been appointed to be one of
the directors of the new Federal Home
Loan Bank, at Cincinnati, is a former
president of the National Asscciation
of Real Estate Boards.
He was named as one of the two
directors to be chosen specifically as
representing the public interest. The
remaining nine must be engaged in the
heme-finaneing business, according to
requirements of the act» creating the
system. Their successors are to be
chosen from a.nong officers or directors
of institutions which own stock in the
bank.
Mr. Kissell last year served as chair
man of a special committee of the
National Realtor Association on the
home loan banking system.
Pennsylvania has been added to the
list of States in whicn new legislation
has been enacted to permit eligible in
stitutions of the State to avail them
selves of membîrsh.ip in the new Re
serve Bank System.
Brick Flat Building.
The Washington Sanitary Improve
ment Co.. as owners, and the Mutual
Construction Co., as builders, have
planned to erect a two-story brick fiat
building at 130 Q street, according to
specifications filed with the District
government. The cost is estimated at
$10,000.
PROPERTY LEASED
BY FLORIDA FIRM
$48,000 Total Rental Paid
for Quarters at 937-39
F Street.
Business quarters at S37-.939 F
street, formerly occupied by Mangels,
has been leased for a possible term of
five years by Louis Domb, Inc., of
Jacksonville, Fla., for a total rental
consideration amounting to $40.000. it
was pnnounced today by the office of
Shannon & Luchs Co., which handled
the transaction.
The property was leased from Rev.
Cornelius F. Thomas, pastor of St.
Patrick's Church, who was represented
by James B. Flynn, attorney. The
property is to be the home of a spe
cialty shop.
Robert C. Cogan of Baltimore, op
erator of e women's clothing establish
ment, has leased property at 712 Sev
enth street from Emma Heller for a
term of two years, for a rental amount
ing to about $450 a month, Shannon &
Luchs announce. Other leases reported i
by this firm included the following:
Property at· 1113 G street, leased by !
James E. Hughes from the Brownley
trust for a term of approximately two
years, for usa as a millinery store, for
a guaranteed rental and percentage.
Property at 937-939 F street, leased
by Fay Raphael and Helen M. Swan
son from Louis Domb for use for a hos
iery and costume jewelry department,
for an undisclosed rental.
The entire upper floor of the build
THIS BEAUTIFUL
COLONIAL HOME
—Has a larpe livinr room with oprn
fiicplace. dininsr room, kitchen and
pantry on 1st floor, and three cheerful
bed rooms with tile bath on ?nd floor,
hardwood floors, hot-water heat, larce
basement with laundry trays, deep lot
with irarapp on alley, fine location, one
blork to school, stores and cars. Price.
Γ8.?Γ,«. Easy term-.
Other modern suburban homes In ex
cellent condition. Γ», β and * rooms: priced
frori Γ3.5Γ0 to $β·'»Γ>0. Some real bar
eains that must be sold. Small cash
pa>mer.t; balance, like rent.
R. D. FOSTER
2 Barney St., Cottage City
Greenwood 2131
Ir.g at 1210 Ο street, leased by the
Qypey Tea Co., Inc., from William
JtlofT, for an undisclosed tîrm and
:onslderat!on.
Martin Mclnerney Is erecting a store
juildlng at 7313 Georgia avenue, which
has been leased to the Atlantic & Pa
rtie Tea Co {or a term of approxi
mately 10 years.
Garfield I. Kass is constructing a store
)uilding at Tenth street and Rhode
[siaiid avenue north?ast. which is tin
ier lease to the Atlantic & Pacific
rea Co. for a term of approximately
10 years.
Business property at 2121 Eighteenth
street has been leased from F. V. Kil
iian for a short term by Tnotnas Gon
sales, formerly associates with the
Duban embassy, who will establish an
intique shop there.
Police Ankles Win Prize.
Masquerading as a girl, Thomas
Miern, Newry, England, policcman, won
the prize for the prettiest ankles at a
;own hall dance.
$8,000 Brick Residence.
A two-story brick residence is to be
erected at 5521 Nebraska avenue for
Mrs. Marie W. Schwarz, by Paul T.
Stone, Inc., buildrr, according to plans
filed with the District government. The
construction cost is estimated at $8,000.
Owner Will Sacrifice
3821 Veazey St. N.W.
(Near Bureau of Standards)
Six large rcoms, two baths.
Oil hrat. p!ec, refrig., hdw.
floor?, double rear porrhrs
(screcrcd), nice yard front
an1 rear, tiro-ear detarhed
garage. Hrlf square East of
Wisconsin Ave.
$12,250
R?jsoraMe Terir*
Open Saturday 6c Sunday
Now Vacant
New Washington Residence
Dwelling at 6804 Pinev Branch road, which was purchased by Mr. and Mrs.
Joseph A. Keene from Orville Rice, builder, through the agency of Phillips &
Canby, Inc. The house has six main rooms and bath and attic and a detachable
garage.
\M I C H I G A Ν MANOR/
The NEW
C. H. SMALL
HOMES
ARE HERE
OurAutumnShow
ingof Beautiful New
Semi-Detached
Brick Homes
Inspect these lovely homes Sunday
You'll fall In love with these delinhtful
new homes ... six bis rooms . . . two
colorful baths . . . fireplaces . . . new
type recreation rooms . . . garage and a
big. 189-foot lot . . . and the other bis
features we'll leave for your Inspection.
BeitvvH & Horniηd
.1.. imc. i. . >
See NOW
4420
14th St.
NORTIIFAS Γ
ι II TOWER BLDG. Wis. U853 left on 14th. I
!· 11
/WASHINGTON'S GARDEN SPOt\
Out North Cavitol
__ ΛΟ__ right on Michigan,
Dis. 0853 left on Hth.
The
ELLSWORTH
HOME of the Week No. 4
Built Complete on Your Lot for as Little as
£40
per
month
for further information write your name
and address on this ad and mail to:
HOME CONSTRUCTION DIVISION
r r λ D C Roebuck and co
LL/~\l>wj^l06 Conn. Ave., Dl 3900
ENTIRELY NEW PLAN
HOME
I . ♦
Semi-Detached — All Brick — Garage
Large Lot Beautifully Landscaped
ON ENTERING you find
a large hall with stairway and
cloak closet—to your left you
pass through an archway to the
living room (12' 9'2"χΠ' 2")
with real open fireplace. Radio
outlet with built-in antenna.
THROUGH another wide
archway to the dining room
(12'4Vs"xl5') with
FRENCH DOORS lading
to the studio <7'6"xl2'), five
windows and lavatory.
SECOND FLOOR—
Master bed room, across full
width of houie, with private
lavatory. Three other g od size
rooms, beautifully tiled bath,
cedar closet, plenty of other
Urge closets.
RECREATION ROOM
—in basement (14' 9"x20' i'i").
SPACIOUS KITCHEN
—plenty of light and air. In
laid linoleum; Sanitas on the
walls. Built-in cabinet; pantry;
electric refrigeration.
BUILT TO ENDURE THROUGH THE YEARS
1341 Shepherd St. N.E.
AT LESS THAN ROW HOUSE PRICES. MONTHLY
PAYMENTS LOWER THAN THE ACTl'AL RENTAL VALUE.
CHARLES M. WALLINGSFORD
Owner & Builder
1010 Vermont Ave. N.W. National 2990
r.
!|
5345 Chevy Chase Parkway
(1 Sq. E. Conn. Ave., corner Kanawha St. and near Military Road)
$10,990
Unquestionably the greatest
value in Chevy Chase, 1). C.
Detached English Colonial, renter hall, of brick, slate roof, 6 large rooms,
2 beautiful baths, 2-car garage, privât? vrranda, let 93.36 ft. front, 3,145.87
sq. ft. Reduced from $12,500 to $10,990. Open and lighted.
LESLIE D. MEASELL, Cleveland 4733
A New House of Superlative Merit
This offering is one of true superiority, notable as an
example of fine construction, distinguished for its beauty
and charm. Built of brick and stone, with all walls
scientifically insulated. 10 rooms, 4 baths.
The location is really wonderful, on an eminence in
a grove of oaks directly facing Rock Creek Park. The
views from the broad brick terraces are lovely.
Please give yourself the pleasure of seeing it.
Open Saturday Afternoon and All Day Sunday
To reach, go out 16th St. a short distance beyond
Walter Reed and Alaska Ave., then turn west on Holly.
REALTY ASSOCIATES, Inc.
Realtors
1427 Eye St. N.W.
JUST COMPLETED
See These Homes Before You Buy
Open for Inspection Daily 9til 9 P.M.
Priced
to
Sell
Terms
to
Suit
5421 to 5427 4th Street N.W.
OTHING left undone in this most beautiful of
all row houses. 6 and 7 rooms, 2 complete baths
with shower. Beautiful kitchen with its colored range,
electric refrigerator and de luxe cabinets. Large
recreation room in basement, automatic water heater,
concrete porches, double rear porches, large yard and
garage. An inspection will convince you that they are
all any one could wish for.
To Reach—Drive out Ga. Ave.,
14th or lôth St. to Jefferson St.,
turn east to 4tk St., thence
north to houses, or call us
for auto service.
District 8600
Metzler—Realtor 1106 Vermont Ave.
f" Sunday and Nights, ADams 0620
SaaatfaaaaaaaaBaaaB^^
\ ...·<
........
NEW HOUSES AT
A STARTLING PRICE
411-19 Hamilton St. N.W.
Six and Seven Rooms
Two Baths, Recreation Room
Latest kitchen equipment, ecreen*, porches, detached
garages, southern exposure, large yard to thirty-foot alley.
CHAS. W. MORRIS & SON
Builders
Xagy Terms
Evan» Bldg.
Open Until 9 P.M.
Met. 5869
We Offer
as exclusive agents
A GROUP OF NEW DE
TACHED HOMES, EACH
HOUSE REPLETE WITH
FEATURES OF AN UN
USU A L CHARACTER
AND BUILT IN THAT
BEAUTIFULLY WOOD
ED AND RAPIDLY DE
VELOPING SECTION
KNOWN AS
American University Park
4822 47th St. N.W.—$8,800
—Colonial brick
and frame—recreation room—2 fireplaces.
4811. 47th St. N.W. $>9,750—Center ball
with living room 14x22.
4630 Davenport St. N.W.—$10.950—
All brick—2 baths—recreation room.
OPEN SATURDAY P.M.—AU. HAY SUNDAY
BOSS & PHELPS
TO R~ACH—1rom Matscchuzcltt Art., nirtii
on *C!h St. to Dattnvort Zi. ar.d turn Irtt.
.J
7^9 Room Homes
At the Price of a 6-Room House
4th and EMERSON STS. N.W.
Highest Point in Petworth
EXHIBIT HOME—340 EMERSON ST.
CASH >9,250 *
COMPARE THESE FEATURES
EASY
MONTHLY
PAYMENTS
Pleasing Colonial Architecture
All-Brick Construction
Homes 35 and 45 ft. Deep
Tapestry Brick—Mansard Roofs
Steel Casement Windows
Covered Concrete Front Porch
1 and 2 Screened Rear Porches
Prettily Terraced Lawns
Detached and Built-in Garages
With "Over-the-Top" Doors
Bone-Dry Concrete Cellar
Double Laundry Trays—Toilet
Instantaneous Water Heater
Red Jacket Heating Plant
Artistic Decoration
Modern Lighting Fixtures
Hardwood Floors Throughout
Double Floor Construction
Radio, Convenience Outlets
Newest Concealed Radiators
Bronze Screens Throughout
Metal Weatherstripping
7 and 9 Well-Planned Rooms
Step-down Living Room
Bright Dining Room
Many with Breakfast Room
Cozy Reception Hall
Coat Closet—Mirror Door
Finished Recreation Room
With Ornamental Fireplace
Gorgeous Modern Kitchen
Silver-Green Color Scheme
8-ft. Colored Porcelain Sink
With Double Drainboard
Latest Model Frigidaire
Built-in Kitchen Cabinet*
New Console Gas Range
Inlaid Linoleum Cemented Down
3 and 4 Spacious Bed Room·
Roomy Wardrobe Closets
Linen ar.d Cedar Closets
2 Smart Colored Tile Baths
Built-in Tub and Shower
Venetian Mirror Cabinet
Chromium Plated Fixtures
OPEN AND LIGHTED UNTIL 9 P.M.
OWNERS
BUILDERS
• OVER 3,000 CAFRITZ LIFETIME HOMES BUILT AND SOLD ·
' 6311
Oa kridge
Ave.
Ck"" Chase, Mi.
•
Open Saturday
S to 8 P. Ma y
in a®" s"nday
10 A. M,s P m
•
T«rJSttlNspECT:
I?7* L*ne
2 shrfrt *ve·. thmSQUare9
TRADE
\Λ/*% — * f ■
J*BH s, N i^^SîÙÇ^
this distinguished ^k'ng '* »n on
tbat we be/ieve fo ht" res,dence
desirable new Κ °Πθ of the
?r es i„ Chevy ri USe proP·
Pr'>e class. /t^-f' Md-«
to nT'ng Wo°ded sectlô ^ in a
hail Î,eVy ?hase Sub" a^3Cent
, _ P'an, three ■■ * Center
j-")™»,,. ,wo ba"tru""iiy hrtc
KTS .nd diJI" n"rch·
. rst floor lava^- u,n-*^ rooms
,n.« Porch, WesS SCree"ed liv.'
at'«n, storie constrn ?*USe refri<ei.
red, walls, metal ?n with fUr.
pnd greened. T^athers dipped
^A. 2345