IN SIGNING the "Home Owners Loan Act of 1933," I feel that we have taken another important step toward the ending of deflation which was rapidly depriving many millions of farm and home owners from the title and equity to their property.
The Act extends the same principle of relief to home owners as we have already extended to farm owners. Furthermore, the Act extends this relief not only to people who have borrowed money on their homes but also to their mortgage creditors.
It will, of course, take a little while to set up the machinery necessary to carry the principles of the Act into effect. In the meantime, I appeal to mortgage creditors and all others who have claims against home owners and ask them, until full opportunity has been given to make effective the refinancing provisions of the Home Mortgage Act, that they abstain from bringing foreclosure proceedings and that they abstain from seeking to dispossess the home owners who are in debt to them.
Cooperation between the officials of the Home Owners Loan Corporation, the mortgagor and the mortgagees during the next few months will make many foreclosures unnecessary and will do substantial justice to all parties concerned.