Full text of Marriner S. Eccles Papers : Letter to Marriner S. Eccles, Box 19, Folder 4, Item 20

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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. We were informed that the bank feels i t
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.)
We were informed by the Bank of America that
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.

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