Stratford Evening Post With which is Incorporated “THE EGMONT SETTLER” Established 1890. MONDAY, MARCH 23, 1931. PROTECTING MORTGAGORS

Stratford Evening Post, Volume I, Issue 88, 23 March 1931, Page 4

Stratford Evening Post With which is Incorporated “THE EGMONT SETTLER” Established 1890. MONDAY, MARCH 23, 1931. PROTECTING MORTGAGORS

THE Bill introduced by the Government for the purpose of protecting mortgagors is very important, and no doubt represents Cabinet’s keen desire to see that everybody enjoys fair play in the difficult times through which the Dominion is \ passing. The problem of mortgages is a very interesting one, for while it is right that the borrower should be given a fair chance, the lender has in many cases been put to considerable trouble in finding the money to lend, and has probably made plans based upon the repayment of his money on due date, and a postponement may seriously disturb those plans. Mortgagees are on the whole benefactors to those to whom they lend their money, and any idea that there is anything in the nature of a widespread conflict between mortgagees and mortgagors in New Zealand would not be correct. Thousands of borrowers are able to meet their commitments, and it is well known that in many cases of hardship the lenders are meeting the borrowers very generously by lowering interest charges, extending the terms of the mortgages, and giving mortgagors every encouragement. Unfortunately there are in existence mortgages that should never have been entered into, and with the grqjat decrease in the prices for farm products, the outlook seems hopeless for both the lender and the borrower. If the Bill before Parliament results in putting off the inevitable in those cases, it will not be of benefit. Much will depend upon the magistrates and Judges, who will hear the applications for relief under the new legislation, but we are of opinion that many satisfactory arrangements will be made privately, as is already being done in a number of cases. It is true to say of the great majority of mortgagees in New Zealand that they are not unmoved by the difficulties of those who have borrowed, and fallen on hard times, and the right of foreclosure is not being applied in cases where there is a ray of hope that the debtor will ultimately win through. Nevertheless, a country cannot pass from an era of inflation and extravagance to a period of deflation and greatly reduced income without experiencing heavy losses. Those losses are by no means confined to mortgagors, for many mortgagees who made what looked like sound investments some years ago are today suffering through mortgagors being unable to meet their obligations. While, therefore, it may be the general opinion that the Mortgagors Relief Bill is a necessary measure, it is one that requires most careful consideration in order to guard against the possibility of making the situation worse than it would otherwise be.