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CONTENTS

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Brendan Brown, who read Senator Mead's statement and answered
questions in his own behalf_

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J. Sinisi, chairman, Queens Division of Community Councils, New
York City-

EXHIBITS

Copy of S. 3447, amendments to S. 3447, S. 3370, S. 3371, and S. 3372_
Document entitled "Statement of cases of distressed H. O. L. C. Home
Owners," by Clara White, president, Council of H. O. L. C. Mortgagors
Letter addressed to Senator Robert F. Wagner, by John H. Fahey, chair-
man, Federal Home Loan Bank Board, on S. 3370, S. 3371, and S. 3372.-
Letter addressed to Senator Robert F. Wagner, by John H. Fahey, chair-
man, Federal Home Loan Bank Board, on S. 3447...

Analysis of income and losses of Home Owners Loan Corporation, pre-

pared by Kalmun Hetcht, New York.

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50

TO AMEND HOME OWNERS' LOAN ACT

WEDNESDAY, MAY 22, 1940

UNITED STATES SENATE,

COMMITTEE ON BANKING AND CURRENCY,

Washington, D. C.

The committee met, pursuant to call, at 10:30 a. m., in room 301, Senate Office Building, Senator Robert F. Wagner presiding.

Present: Senators Wagner (chairman), Adams, Hughes, Herring, Miller, Clark of Idaho, Townsend, and Danaher.

Present also: Senator Barbour of New Jersey, and Representative James M. Fitzpatrick, Twenty-fourth District of New York.

The CHAIRMAN. The committee will come to order. We have before us for hearing today S. 3447 and S. 3447 amendments, introduced by Senator Mead, S. 3370, S. 3371, and S. 3372 introduced by Senator Barbour.

These bills will be made a part of the record at this point. (The five bills referred to are as follows:)

[S. 3447, 76th Cong., 3d sess.]

A BILL To amend the Home Owners' Loan Act by reducing the rate of interest on obligations of home owners, by abolishing certain deficiency judgments, and by providing a moratorium on foreclosures.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (d) of section 4 of the Home Owners' Loan Act, as amended, is amended by adding at the end thereof the following new paragraph:

"Notwithstanding the foregoing provisions of this subsection, the rate of interest on the unpaid balance of the obligation of any home owner to the Corporation under this Act outstanding on the date this paragraph takes effect, or on the unpaid balance of any such obligation incurred after such date, shall not exceed 3 per centum per annum."

SEC. 2. The Home Owners' Loan Corporation shall not apply for or secure, and shall take no action to obtain, personal or deficiency judgments in foreclosure proceedings in excess of the actual amount of costs incidental to the proceedings. The Home Owners' Loan Corporation is hereby restricted to seek recourse against the mortgaged property only. All personal and deficiency judgments heretofore taken by the Home Owners' Loan Corporation are hereby abolished.

SEC. 3. That a moratorium is hereby proclaimed forbidding, suspending, causing, and stopping the foreclosure of Home Owners' Loan mortgages by the Home Owners' Loan Corporation, its agents, and employees, for a period of two years from the date of enactment: Provided, That the mortgagor pays the interest, taxes, and all other assessments levied against the mortgaged property except any part of the principal indebtedness.

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