PARLIAMENT

Evening Star, Issue 21968, 2 March 1935, Page 21

PARLIAMENT

PROGRESS OF THE MORTGAGE BILL [Per United Press Association.] WELLINGTON, March 1. The House resumed at,2.MO in committee on the Mortgage Corporation Bill. Mr Veitch moved an amendment to clause 24 with the object of removing the personal convenant. In his opinion mortgages taken by the corporation should be secured by the value of the mortgage asset, and that security should not extend to the personal possessions of mortgagors. Mr Harris said that under the Bill as it stood at present a worker in tintown could secure a loan only up to 66 2-3 per cent, of the value of a property, whereas a farmer could get up to SO per cent. That, lie contended, was not fair. The worker should be placed on the same footing as the farmer Mr Vciteh’s amendment was lost on the voices, and Mr Savage’s was ruled out of order as it involved appropria tmn. Mr Coates indicated that measures were in hand to deal with the housing conditions in the cities that would benefit the workers. Mr Savage said the Opposition'! viewpoint was that all sections should be treated alike, but it was not going to vote against the clause because oik section received a benefit. Ho classed the clause as a rod herring, and sail' that farmers who needed assistance would not receive it from that measure Clause 24 was passed. On clause 25 Mr Langstone said thState Advances Department could In administered for 3s 4d per cent, and as low as 2s 6d per cent., yet the corpora tioo was allowed 1 per cent. That showed that Government extravagance and cost of administration played a large part in the rate of interest to the borrower. Mr Mason moved an amendment to reduce the administration cost to a limit of 1 per cent., but the amendment, was lost. Mr Wilkinson moved an amendment to clause 26. bis aim being to allow the mortgagor ro repay bis loan in cash at any time if he yyas able to do so; other wise he was tied for fifty years. 1 Air W. Nash said provision was made

for loans under State advances to be paid off at any time, and the corporation was supposed to be something better, yet similar provision was not made. Mr Coates said that in the case of the State Advances Department, owing to the provision for the repayment of loans at any time it had lost the cream of its loans to the private individual, leaving it with the doubtful loans, and the taxpayer had had to find large sums of money to meet the position that had arisen. ; The aihendment was lost by 34 to 22. Mr Langstone moved an amendment to clause 28, making it mandatory that when the sale of a property took place the principal moneys should be called up Mr Coates said that as the clause stood at present on sale every mortgage must be reviewed, and if it was incumbent that a new loan should be taken up in every instance hardship would be caused in many cases. The board could call up the principal if it wished. Tbe amendment was lost. Mr Nash moved an amendment to the wording of tbe clause relating to procuration foes in make it unlawful that such payment be received. Mr Coates said he would accept the •Mucndmcnt, subject to the approval of file lew draughtsman, and this was agreed to. Another sub-clausc was moved _ providing a penalty for a person receiving i procuration fee and provision for its "oeovery. but the amendment was lost. Progress was reported, and the House rose at 5.55 p.m.