MORTGAGE LOSSES

Nelson Evening Mail, Volume LXXII, 24 November 1938, Page 12

MORTGAGE LOSSES

WORK OF ADJUSTMENT COMMISSIONS There are, of course, two sides to the Mortgagors and Lessees Rehabilitation Act. So it happens that when the Minister of Justice announces that remissions and adjustment of debts under this Act have brought relief to the extent of more than £7,000,000 to mortgagors, this meant that mortgagees had suffered a corresponding loss (remarks “The Dominion”). The figures may not work out quite like that, but, broadly speaking, the gains of the borrowers have been the losses of the lenders. In many cases, of course, there have been losses on both sides, because of overvaluation or poor prices for produce, or mismanagement. The fact that the adjustment commissions have now approached the completion of their task must be regarded as a matter for general satisfaction. The work of readjustment has been a disturbing influence both with mortgagorgs and mortgagees; and it is rather surprising that the commissions have done as well as is generally understood to be the case in satisfying the conflicting interests concerned. There may be few of the parties affectl ed wholly satisfied with the outcome, ■ but in a substantial proportion of » cases some adjustment was recognised , to be necessary, and the commissions , usually appear to have exercised care • and discretion in reaching their deci- ■ sions. It is unfortunate that in adjustments as between lender and borrower the tendency is to overlook or to minimise the hardship suffered by the lender. Throughout discussion of the mortgage relief legislation the main weight of sympathy has been extended to the unfortunate mortgagor. Yet many of r those who loaned the money were no ! better placed to suffer its loss than were ’ those who borrowed it. The significant features of the losses is that £6.180.621 ( of the total related to losses against 1 farmlands; a tremendous proportion of the £7,342,751 of remissions of capital and interest made by the commissions.