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F E D E R A L R E S E R V E B A N K OF SAN FRANCISCO S A N FRANCISCO 20, CAIJFORNIA December 17, 1947 Mr. Marriner S. Eccles, Chairman, Board of Governors of the Federal Reserve System, Washington 25, D. C. Dear Chairman Eccles: My letter of December 13, 194-6, gave you some information received from Chief National Bank Examiner Wright concerning the appraisal policies of the Bank of America N. T. & S. A. Recently we had occasion to discuss existing appraisal policies with one of the real estate officers of the bank. W were informed that the bank feels i t e has refined i t s appraisal technique, and that, i n recent months and for the foreseeable future, i t has made and expects to make real estate loans on a selective basis, ( i t has come to our attention from outside sources that the bank is now considerably less l i b e r a l in i t s real estate loaning policies.) W were informed by the Bank of America that e prior to the war i t s appraisals of homes averaged approximately #5«50 per square foot* At the present time appraisals on new construction for loans made without F.H.A. insurance average about #6.50 per square foot. Appraisals on new homes for loans made under F.H.A. T i t l e VI are #7.50 to $8.00 per square foot. In the l i g h t of existing costs of frame dwelling construction, running from #8.00 to #12.00 per square foot for mediumclass homes, the present appraisal policy of the Bank of America seems to be more conservative than has heretofore been indicated. Yours very traily, C. E. Earhart, President. December 23, 19U7- Mr. C. E. Earhart, President, Federal Reserve Bank of San Franoisco, San Franoiaoo 20, California. Dear Br. Earhart: On behalf of Mr. Eccles who, as you know, is spending the holidays i n Utah, I wish to acknowledge your letter of December 17 concerning the appraisal policies of the Bank of America. Sincerely yours, E l l i o t t Thurston, Assistant to the Chairman. ET:b
