The People's Defender

Brunner To Head The Home Owners Loan Corporation

Columbus, Ohio. - Accepting appointment as Ohio manager of the federal Home Owners' Loan Corporation, Henry G. Brunner of Mansfield immediately set about organizing Ohio headquarters of the corporation so the benefits of the home loan act might be made available to home owners without delay. Conferences with William F. Stevenson, chairman of the corporation at Washington, will be followed by establishment of Mr. Brunner's office at Columbus and regional headquarters in major cities.

After resigning as Democratic state chairman, Mr. Brunner announced: "My sole concern now is up to the state-wide machinery under which the home loan act will operate expeditiously and fairly for the relief of home owners entitled to government aid under its provisions.

Information as to procedure for obtaining loans and other details will be set forth officially as rapidly as the personnel can be organized to put into effect the policies of the national administration."

As interpreted by Washington observers the act will operate somewhat in this manner:

Applications will be made available so that home owners may list their needs and description of their property which is about to be foreclosed or is so encumbered that the home owner no longer is able to meet the requirements of his present loan.

When an application is submitted the state manager will take up with the mortgagee or other claimants against the property a proposal that a stated amount of government home loan bonds be accepted in settlement of the mortgage or other claims.

If the mortgagee's consent is obtained, appraisal of the value of the property and examination of title, investigation of the applicant, insurance and other details will be passed upon by representatives of the state manager.

If the application is approved the corporation may pay to the mortgage holder bonds not to exceed 80 per cent of the appraised value of the property.

In cases in which a bond exchange can not be effected the corporation may make loans in cash to distressed home owners to take up a mortgage or other obligation on the home and may provide for meeting necessary taxes, repairs and similar charges.

Such loans shall not exceed 40 per cent of the value of the property.

Loans must be repaid within 15 years at an annual rate of 5 per cent interest in most cases and 6 per cent in other cases.

The state manager shall recommend three persons of good character to serve as a state advisory committee, without compensation, to observe the operation of the act and report on transactions. The state board may appoint county advisory committees of three members to serve without compensation.

Property eligible for loans must be occupied by the owner and may have other tenants, not exceeding three other families. In no case may loans be obtained on property valued at more than $20,000 and no loan shall be over $14,000 or 80 per cent of the appraisal.

Loans will not be made on rental property not occupied by the owner nor in cases where the only object in borrowing from the government is to refinance property on more desirable terms.