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program. The new protective features included:
1. A change in the regulations covering property improvement and repair loans which will make the lender responsible for 20 percent of the loss on each individual loan, instead of giving the lender virtually complete protection from loss, as under existing law. This should discourage the making of unsound loans solicited by high pressure agents trying to sell their products or services. The bill also provided that this type of loan shall be limited to improvements which substantially protect or improve the basic livability or utility of the property and in the future those who want to build tennis courts, swimming pools or barbecue pits will have to do so without the backing of the Federal- Gov- - ernment.
A requirement that those who . obtain FHA insured building ofL_ rehabilitation loans shall make a certification of the cost of the cost of the construction after it is finished and that repayment shall be made of any part of the mortgage which is in excess of the permitted percentage of cost. The law has allowed the FHA to insure various classes of loans up to from 80 to 95 percent but in the past this percentage has been based on builders’ advance estimates -and those who Hid the work at reduced costs 'might wind up with some
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