Abstract

The Home-Loan Act-a Fraud?

The Home Owners' Loan Act, which became a law on June 13, is designed to aid home owners who are in danger of losing their property. It applies to property upon which there is located a dwelling for not more than four families used by the owner as a home, or held by him as a homestead, and having a value not exceeding $20,000. The act provides for the creation of a new Corporation to be known as the Home Owners' Loan Corporation. The capital stock of the corporation shall be subscribed by the government in such amounts from time to time as the Board of Directors may determine, but not to exceed in the aggregate $200,000,000. With this financial structure, the corporation is authorized to deal in three different kinds of home mortgages, which for convenience may be designated as 80 per cent, 50 per cent, and 40 per cent mortgages.