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HEARINGS

BEFORE A

SUBCOMMITTEE OF THE
COMMITTEE ON BANKING AND CURRENCY

(1
UNITED STATES SENATE

n
SEVENTY-THIRD CONGRESS

FIRST SESSION

ON

S. 1317

A BILL TO PROVIDE EMERGENCY RELIEF WITH RESPECT
TO HOME MORTGAGE INDEBTEDNESS, TO REFINANCE
HOME MORTGAGES, TO EXTEND RELIEF TO THE OWNERS
OF HOMES OCCUPIED BY THEM AND WHO ARE UNABLE
TO AMORTIZE THEIR DEBT ELSEWHERE, TO AMEND THE
FEDERAL HOME LOAN BANK ACT, TO INCREASE THE
MARKET FOR OBLIGATIONS OF THE UNITED STATES

AND FOR OTHER PURPOSES

APRIL 20 AND 22, 1933

Printed for the use of the Committee on Banking and Currency

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1933 b copy 3

COMMITTEE ON BANKING AND CURRENCY

DUNCAN U. FLETCHER, Florida, Chairman CARTER GLASS, Virginia

PETER NORBECK, South Dakota ROBERT F. WAGNER, New York

PHILLIPS LEE GOLDSBOROUGH, Marylani ALBEN W. BARKLEY, Kentucky

JOHN G. TOWNSEND, JR., Delaware ROBERT J. BULKLEY, Ohio

FREDERIC O. WALCOTT, Connecticut THOMAS P. GORE, Oklahoma

ROBERT D. CAREY, Wyoming EDWARD P. COSTIGAN, Colorado

JAMES COUZENS, Michigan
ROBERT R. REYNOLDS, North Carolina FREDERICK STEIWER, Oregon
JAMES F. BYRNES, South Carolina

HAMILTON F. KEAN, New Jersey
JOHN H. BANKHEAD, Alabama
WILLIAM GIBBS MCADOO, California
ALVA B. ADAMS, Colorado

WILLIAM L. HILL, Clerk
R. H. SPARKMAN, Acting Clerk

SUBCOMMITTEE ON HOME MORTGAGES, ETC.

ROBERT J. BULKLEY, Ohio, Chairman ALBEN W. BARKLEY, Kentucky

JAMES COUZENS, Michigan WILLIAM GIBBS MCADOO, California JOHN G. TOWNSEND, JR., Delaware ROBERT F. WAGNER, New York

II

LIBRARY OF CONGRESS

DEC2 1936
DIVISION OF DOCUMENTS

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Statement of-

Page

Hon. Royal S. Copeland, a United States Senator from the State of

New York.

41

Charles O'Connor Hennessy, president Savings & Loan Bank of the

State of New York, 217 Broadway, New York.

Franklin B. Lord, attorney at law, 25 Broadway, New York City - 20
D. E. McAvoy, secretary of the Home Mortgage Advisory Board, 35
Liberty Street, New York City -

-- 23, 35
Horace Řussell, general counsel, Federal Home Loan Bank Board,
Atlanta, Ga.

5
Walter S. Schmidt, representing the National Association of Real
Estate Boards, Cincinnati, Ohio...

43

Henry Woodhouse, 280 Madison Avenue, New York City.

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HOME OWNERS' LOAN ACT

THURSDAY, APRIL 20, 1933

UNITED STATES SENATE, SUBCOMMITTEE OF COMMITTEE ON BANKING AND CURRENCY,

Washington, D.C. The subcommittee met, pursuant to call, at 10 o'clock a.m., in room 301, Senate Office Building, Senator Robert J. Bulkley presiding:

Present: Senators Bulkley (chairman of the subcommittee), Couzens, and Townsend.

Present also: Senator Copeland.

Senator BULKLEY (chairman of the subcommittee). This is a hearing on Senate 1317, the home loan relief bill that has been approved by the administration. (The bill S. 1317 is as follows:)

[S. 1317, 73d Cong., 1st sess.) A BILL To provide emergency relief with respect to home mortgage indebtedness, to

refinance home mortgages, to extend relief to the owners of homes occupied by them and who are unable to amortize their debt elsewhere, to amend the Federal Home Loan Bank Act, to increase the market for obligations of the United States, and for other

purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the “Home Owners' Loan Act of 1933."

DEFINITIONS

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SEC. 2. As used in this Act

(a) The term “ Board” means the Fedtral Home Loan Bank Board created under the Federal Home Loan Bank Act.

(b) The term “ Corporation means the Home Owners' Loan Corporation created under section 4 of this Act.

(c) The term “home mortgage means a first mortgage on rea estate in fee simple, or on a leasehold under a renewable lease for not less than ninetynine years, upon which there is located a dwelling for not more than three families used by the owner as a home and having a value not exceeding $10,000, and the term “first mortgage" includes such classes of first liens as are commonly given to secure advances on real estate under the laws of the State in which the real estate is located, together with the credit instruments, if any, secured thereby.

(d) The term “ association means a Federal Savings and Loan Association chartered by the Board as provided in section 5 of this Act.

REPEAL OF DIRECT LOAN PROVISION OF FEDERAL HOME LOAN BANK ACT

SEC. 3. Subsection (d) of section 4 of the Federal Home Loan Bank Act (providing for direct loans to home owners) is hereby repealed.

CREATION OF EMERGENCY LOAN CORPORATION

SEO. 4. (a) The Board is hereby authorized and directed to create a Corporation to be known as the Home Owners' Loan Corporation, which shall be an instrumentality of the United States and which shall be under the direction of the Board and operated by it under such bylaws, rules, and regulations as it may prescribe for the accomplishment of the purposes and intent of this act.

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