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Thursday, November 15, 1979
University Daily Kansan
Venable quits Senate job citing lack of leadership
The Student Senate Communications Committee chairman resigned this week because, he said, he was "fed up" with the leadership and unity in the Senate.
Bill Venable submitted his letter of resignation to Margaret Berlin, student body president. Monday. In his letter, he said that "I did not do her job well, among other things."
Berlin had asked for Venable's resignation last week because of his inactivity.
"I have never been satisfied with the work communications he has done this year," she said.
At first Venable resigned to resign unless Berlin did. He then met with Berlin, George Gomez, student body president at UCLA, and ExStu chairman ExStu chairman on Friday to discuss
evaluation forms his committee mem-
ers had filled out.
Wintersheldt said the evaluations were not sent out to get rid of any committee chairmen.
"Everybody gets negative responses but most were criticizing what the committee was doing," Wintershield said. "Criticized him for a lack of leadership."
Berlin said the evaluations confirmed Venable's performance.
Venable denied Berlin's charge that he was not doing anything. He said he had worked toward increasing the power of the police and had served on the Kansan Board.
He admits that he did not communicate well with his committee but said, "they I wasn't doing any and I was, and I want everybody to know I was."
Usury law slows home loan flow
Staff Reporter
BvSCOTT FAUST
The flow of home mortgage loans to local consumers has been nearly stopped by the Federal Reserve, which is tied to a Kansas usury law which limits mortgage interest rates, area banks said.
The inability of customers to pay for new homes and a similar difficulty in construction firms obtaining loans is pinching the demand for manufacturing industry, according to Lawrence builders.
Representatives from Anchor Savings Association and Lawrence Savings Association said yesterday that their firms had been renting homes on which they had already made a construction loan or for homes previously purchased with loans made by them but now have no loans.
The financial institutions do not make the loans, because under the usury law, they would be paying more for the money than
they could make by lending it, said Chris Forbes, Anchor Savings loan manager.
Banks and savings and loan association may pay customers holding six-month Money market certificates interest rates well above the 11 percent usury limit placed on mortgages, Forbes said, and also must accept loan borrowed from the Federal Reserve Bank.
Twelve percent is the discount rate, raised in October by the Federal Reserve Board as a part of its effort to battle inflation.
The Kansas lawy also prevents Kansas landlocked banks from locally made loans to the Federal Bank Loan Mortgage Corp. Forbes said. Selling the loans creates more funds for additional lending.
FHLM periodically sets a rate at which it will buy loans. Because that rate is more than 11 percent, Forbes said, Karnas firms may money if they sold loans to the corporation.
Mark Buller, a Lawrence Savings Association loan officer who called the loan situation a "liquity crunch," said his firm
made the decision not to make any mortgage loans for customer protection.
Dary Beene, a partner in the Harris Construction Co., said his residential construction business had been "basically transformed" into the national construction bean to slack off in July.
"It is simply a supply and demand situation in our location," he said. "There is no money available for new construction."
He said he blamed the Kansas usury law for the shortage.
ROB PHILLIPS, sales agent for Edmonson Real Estate, said it was as if someone had put a morarium on the construction of new homes.
"Last year at this time, construction workers had so much to do," Phillips said. "Now they're spending many afternoons not doing anything."
There will be a worker layoff, be said, because there is no construction work going into the winter.
In October, 1978, 42 single-family building permits were issued in Lawrence, for a total construction value of almost $1.9 million.
This October, the city issued 12 permits for a total of $593.200.
The average valuation of the homes in October, 1978 was $44,730.95 and $49,433.33 in October 1979.
BOTH FORBES and Buhler said that they felt removal of the usurant limit would free funds for mortgage loans and that com- ponies would keep interest rates from skreveting.
"I think it has some long term effects on the economy of our state," Buhler said.
An interim legislative committee recommended to the 1800 session of the Kansas Legislature that the 11 percent limit be removed for a two-year trial period.
Another possible remedy for the mortgage loan shortage arise Tuesday when Kansas Attorney General Robert Stephen ruler led charge can upgrade to 14.5% for first home mortgages, if they make them as well under the state's Uniform Commercial Code.
Forbes and Bueller said that their firms were looking into the option, but that they had not used it previously and were unsure of its intentions and disclosure requirements.
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