Cloims Log Jom of Mortgoge Credit

Emanuel M. Spiegel, presidert of the National Association of Home Builders, has challenged claims by a savings and loan spokesman that there is plenty of mortgage credit available for GI home buyers.

Spiegel said factual reports from builders and lenders all over the United States refute the "plenty of credit" claim made by Norman Strunk, executive vice president of the U. S. Savings and Loan League.

"A telegraphic survey conducted by NAHB just 10 days ago shows that builders in every section of the country are curtailing operation or u'ill do so in the very near future unless the log-jam of mortgage credit is broken," he said.

"The thousands of building construction craftsmen and rvorkers in allied lines who have lost their jobs or may soon be idle as a result of this crisis might find Mr. Strunk's optimism hard to swallow," he added. "So might all those veterans who have been trying unsucessfully to buy new homes for their families."

He said the findings of the NAHB survey 'w'ere borne out by members of the House Veterans' Affairs Committee, ll'ho reported last vveek that they rvere being flooded with complaints from veterans rvho have been unable to get financing for home purchases.

As further evidence of the increasingly tight mortgage situation, he cited figures by the Bureau of Labor Statistics shorving that nerv housing starts in May, normally the peak production month of the year, fell below the April level for the first time since World War II.

The NAHB President pointed out that savings and loan associations finance only about one-fourth of all GI housing and that in most instances their terms are far stiffer than the minimums set by the Veterans' Administration.

For example, he said, these lenders customarily require dorvn payments of 15 to 20 percent and limit their mortgage terms to about 20 years, although the GI program calls for no do'ivn payment and 30 years to pay.

"The hard truth is that savings and loan associations, rvhile thev are doing a good job u'ithin their limitations, just don't have the resources to finance all the GI housing that is needed," Spiegel said. "Three out of four veterans r'vho want homes must go else'n'here for their financing, and in most cases today they find that mortgage credit has dried up completely."

Phil Kelty, experienced lumber salesman of Los Angeles, has joined the sales staff of Western Custom N{ill, Lumber Division, of Los Angeles, according to Floyd Scott, president of the concern. Mr. Kelty has been identified with Redwood sales in Southern California for several years.

Jim Newquist, of the Pasadena \\'holesale Lumber concern, returned last rveek from an extended trip through the Pacific Northu'est. It rvas a combined business and pleasure trip.