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House Document No. 763 78th Congress, 2d Session ELEVENTH ANNUAL REPORT OF THE FEDERAL HOME LOAN BANK ADMINISTRATION LETTER FROM AGENCY, THE COMMISSIONER, NATIONAL HOUSING FEDERAL HOME LOAN BANK ADMINISTRATION TRANSMITTING THE ELEVENTH ANNUAL REPORT OF THE FEDERAL HOME LOAN BANK ADMINISTRATION FOR THE PE RIOD JULY 1, 1942, THROUGH JUNE 30, 1943, COVERING THE OPERATIONS OF THE FEDERAL HOME LOAN BANKS, THE FEDERAL SAVINGS AND, LOAN ASSOCIA TIONS, THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION, THE HOME OWNERS' LOAN COR PORATION, AND THE UNITED STATES HOUSING CORPORATION NOVEMBER 14, 1944.-Referred to the Committee on Banking and Currency and ordered to be printed UNITED STATES GOVERNMENT PRINTING WASHINGTON : 1944 OFFICE LETTER OF TRANSMITTAL NATIONAL HOUSING AGENCY, FEDERAL HOME LOAN BANK ADMINISTRATION, OFFICE OF THE COMMISSIONER, Washington, D. C., October 30, 1944. The SPEAKER OF THE HOUSE OF REPRESENTATIVES, Washington, D. C. MY DEAR MR. SPEAKER: ,I am sending you herewith the Eleventh Annual Report of the Federal Home Loan Bank Administration for the period July 1, 1942, through June 30, 1943, covering the operations of the Federal Home Loan Banks, the Federal Savings and Loan Associations, the Federal Savings and Loan Insurance Corporation, the Home Owners' Loan Corporation, and the United States Housing Corporation. Again this year, as a wartime economy, we have substantially cur tailed the text of the report and have had it multilithed in our own duplicating section. The attached copy is one of a very limited number which have been prepared in compliance with instructions contained in Budget Circulars No. 379 and No. 389. Sincerely yours, JOHN H. FAHEY, Commissioner. For sale by the Superintendent of Documents, U. S. Government Printing Office Washington 25, D. C. - Price 15 cents II CONTENTS Page ---------------------------I. The year in retrospect Residential construction and the real-estate market -1-------Residential constructionBuilding costs----------------Real-estate market-------------Real-estate overhang ------------------------------------------------Mortgage finance and savings Home-mortgage lending in 1942Home-mortgage debt---------------------------------Private savings------------------------------------II. Savings and loan associations----------------------------------Number and assets ----------Operations in a war-time economy ----------------------------------- ---Lending 'operations ----------------------Service to the, public---Increased strength of savings and loan associations - - - - - Financial operations--------------Balance sheet-------------------------------------Statement of operations -----------------------------III. Federal Home Loan Bank Administration ------------------Administrative expenses of the Federal Home Loan Bank Administration - ------------------------------------IV. Federal Home Loan Bank System-----------------------------Lending activity of regional banks ------------------------Members' deposits ---------------------------------------Debenture financing --------------------------------Financial statements -----------------------------V. Federal Savings and Loan Insurance Corporation __------20 ----------------------Insured institutions ------Operations of the Insurance Corporation -------------------Insurance settlements ----------------------------------Operations of insured institutions in default- -------------------------------VI. Home Owners' Loan Corporation ---------------------------------------General operations /Status of accounts ---------------------------------------Accounts terminated-------------------------------Mortgage and vendee accounts -----------------------Properties acquired, including those subject to redemption Property accounts----------------------------------Reconditioning---_ -----------------------------------Appraisals- -------------------------------------------Financial statements ---------------------- /-----------War housing activities----------------------------------Programing -----------------------------------Applications for conversion- -------------------------Production---------------------------------------Cost ---------------------------------VII. United States Housing Corporation ---------------------------List of exhibits--------------- --- -- % Exhibits----------- ----------------------- 1 1 1---------------------22----------------------2 2 3 33--------------------4 5 7 7 10 10 11 11 12 12 13 14 14 16 16 17 18 18 20 20 21 23 24 24 26 26 26 27 27 28 28 28 29 29 29 29 29 30 31 33 ELEVENTH ANNUAL REPORT OF THE FEDERAL HOME LOAN BANK ADMINISTRATION I. THE YEAR. IN RETROSPECT During the fiscal year 1943, the war overshadowed all other influ ences affecting economic trends. The national effort was devoted in creasingly to war production. By the end of the reporting period, expenditures for war activities amounted to more than $7,000,000,000 a month./ This tremendous effort absorbed the output of millions of American workers, -many of whom migrated to the centers of war production. War-housing needs rose. requiring action by the housing agencies-con solidated under the National Housing Agency. At the same time, incomes of American workers increased to the highest levels in the history of the Nation. As the result of growing shortages of civilian goods, and the monetary requirements of the Fed eral Government, a large portion of these- incomes was either invested in War bonds or otherwise permitted to accumulate as savings. However, these increased incomes are being used in part to purchase real estate. Because of the demand for homes by war workers'who need quarters in centers of war production, and who have more pur chasing power available than ever before, there i§ inflationary pressure on real-estate prices. Thi's upward pressure on prices, coupled with the fact that lending institutions have difficulty in finding satisfactory investment outlets, results in a temptation to make inflated loans based on appraisals reflecting temporary market conditions. This may develop a situation which could become a menace and interfere with the prompt resumption of home building after the war. RESIDENTIAL CONSTRUCTION AND THE REAL ESTATE MARKET Residential construction.-The fiscal year 1943 was the first full year during which the War Production Board'Ef Order L-41 limiting con struction had been in continuous operation. As, might be expected, there was a substantial decline in residential construction. This is shown by the table of nonfarm dwelling units presented as exhibit -1 of this -report.I During the Lisal year 1943, the number of nonf arm dwelling units completed was approximately 391,700, compared with 652,100 during the 1942 fiscal year and-697,900 during the 1941 fiscal year. The de cline during the, reporting period represents the first important inter ruption in the trend of new residential construction, which has' been rising steadily since-the depression of 1932_"033. Much of the war housing is temporary construction or is located in places where there may be no great demand for it after the war. Such construction cannot be financed privately, and this portion of war 2 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION housing must necessarily be publicly financed. Because of the increase in publicly financed construction and the decline in private construc tion, publicly financed units built during the fiscal year 1943 exceeded privately financed units for the first time. During the reporting period publicly financed nonfarm dwelling units totaled 196,885 as compared with 154,139 during 1942 and 106,672 during 1941. Building costs.-In June 1943 the wholesale price index of building materials, as reported by the Bureau of Labor Statistics, was 123.5, which was up only fractionally from the index for June of 1942. The index, computed for each month of the past fiscal year, ranged only from 122.6 to 123.5. This stability in the cost of building materials, which probably resulted from the imposition of price ceilings, is reflected in the Fed eral Home Loan Bank Administration's index of labor and material costs for constructing a standard six-room frame house in selected cities. During the reporting period retail material prices, as reflected in this index, rose from 121.2 to 123.0. Labor costs, however, rose more rapidly than material costs. The index of the cost of labor to build the standard six-room house increased from 127.8 in June of 1942 to 134.3 in June of 1943. For this reason the index of total building cost rose from 123.5 to 126.8 during the same period. Exhibit 2 presents these indexes monthly for the 1942 and 1943 fiscal years. Real-estate market.-The strength of the real-estate market during the fiscal year 1943 was demonstrated by the decrease in nonfarm foreclosures, which were estimated to be 33,402, compared with 49,890 during the 1942 fiscal year and 69,169 during the 1941 fiscal year. Foreclosures during thq 1943 fiscal year were less than half those during 1941. The improvement was general throughout the Nation, being shared by each of the 12 Federal Home Loan Bank Districts and by every State except Nevada, where the total number of properties foreclosed was so small that the general trend may have been overshadowed by random fluctuations. Even in New York, the Bank District reflecting the smallest improvement, foreclosures during the 1943 fiscal year declined one-fourth from those of the previous year. The number of nonfarm real-estate foreclosures during the last 2 fiscal years, by Federal Home Loan Bank Districts and by States, is presented in exhibit 3. Real-estate overhang.-During the calendar year -1942, the latest 12-month period for which data are available, the estimated book value of residential real estate owned by operating savings and loan associations, commercial and mutual savings banks, life insurance companies, and the Home Owners' Loan Corporation decreased 27.5 percent from $1,387,165,000 to $1,005,893,000, a larger percentage reduction than that for the previous year. This reduction was due to increased demand resulting from industrial expansion, rising family incomes, and movement of war workers at a time when the supply of new homes was curtailed through the stopping of all but war housing projects. Liquidation of real estate held by mortgage lenders has been so rapid in recent years that the total held on December 31, 1942, was little more than one-third of that held by these lenders 4 years before. In 1942, as in the previous year, savings and loan associations led all REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 3 types of lenders in disposing of real estate owned. During the, year the holdings of such associations declined from $327,620,000 to $203,819,000, a decrease of 37.8 percent. The holdings of mutual savings banks and of commercial banks decreased by 33.3 and 33.0 percent, respectively. For the Home Owners' Loan Corporation, the reduction in real estate owned was 19.3 percent. The smallest percentage decline, 17.6 percent, was shown by the life insurance companies, which now hold more residential real estate than any other class of lender. Figures for the residential real estate owned by financial institutions are presented in exhibit 4. In the Northeastern States the problem of the real-estate overhang is especially, acute. Most of the small amount of real estate now owned by the Home Owners' Loan Corporation, for example, is now concentrated in these States. The concentration of the problem for savings and loan associations is indicated by the fact that these associ ations in New Jersey and Pennsylvania own more than one-third of the real estate owned by the entire savings and loan industry at the close of 1942, although only about 10 percent of the outstanding mort gages were located in these two States. However, the widespread extent of improved conditions is shown by the fact that residential real estate owned by savings and loan associ ations was reduced in each of the Federal Home Loan Bank Districts during 1942. The decrease ranged from 12.4 percent in the Los 'Angeles and 14.3 percent in the Portland regions to 43.4 percent in the Chicago and 46.0 percent in the Boston Districts. The rapid reduction in, properties held by financial institutions means that these institutions will be better prepared to finance housing demands in the post-war period. Also, the real-estate market will then be in a healthier condition because it will be freed in most locali ties from the depressing influence of institutionally owned properties which are either actively or potentially a threat to the stability of the market. Real-estate holdings of mortgage lenders have now been reduced so greatly that the properties still held are largely those which, because of obsolescence, local conditions, or other reasons are unusually difficult to sell. MORTGAGE FINANCE AND SAVINGS Home mortgage lending in 1942.-The volume of new mortgage-loans written on nonfarm one- to four-family dwellings was estimated to be $3,082,000,000 during the calendar year 1942. This compared with $3,768,000,000 during 1941 and $3,270,000,000 during 1940. The drop in 1942 was caused in large part by the decrease in new building resulting from the order of the War Production Board limiting I construction. The decline in mortgage lending activity would have been even greater had not loans made to finance home purchases expanded. The migration of workers to war centers where many were forced to buy homes because of inability to rent, and the higher incomes which encouraged many families to buy homes, resulted in a large volume of lending to finance real-estate sales. Figures for the mortgage loans written by each of the major lending groups are presented in exhibit 5 It will be noted that savings and loan associations as a group ranked first, writing more than a third of 64952---44---2 4REPORT OF FEDERAL; HOME LOAN BANK ADMINISTRATION all mortgages originated in 1942. Mortgages written by the associa tions totaled $1,051,000,000 during the year, a decline of 23.8 percent from the total of $1,379,000,000 for the previous 'year. Similar declines were experienced -by the mutual savings banks, which wrote $130,000,000 of mortgages, or 24 percent less than in 1941, and by the commercial -banks, which, with their trust departments, wrote $606,000,000, or 24.1 percent less than in 1941. The experience of "individuals and others" was more favorable, their new mortgage loans declining only 10.6 percent to a total of $881,000,000. Lending activity credited to the Home Owners' Loan Corporation during 1942 was $40,000,000, a decrease of 36.5 percent from 1941. This amount represents the estimated total of purchase-money-mortgages given by the Home Owners' Loan Corporation to purchasers of- the Corpo rations' properties, together with advances to enable the Corporation's borrowers to pay taxes, make essential repairs, etc.- The decline from 1941 to 1942 was caused by a reduced volume of'sales of its real estate, due to the smaller inventory of Home Owners' Loan Corporation properties and by a lowervolume of advances to borrowers. The only lenders who, as a group, originated more loans in 1942 than in 1941 were the life insurance companies which wrote $374,000,000 of loans in 1942, up'slightly from the $371,000,000 of the preceding year. .A study can be made of mortgage lending on a fiscal-year basis, by means of the nortgage-recording data collected for -several years by the Bank Administration. Although recordings cannot be taken as an accurate measure of new lending, because they include changes, in existing mortgage contracts as well as new lending, nevertheless, recordings give a valuable picture of trends in mortgage financing and in the activity of the different types of lending institutions. During the fiscal year 1943, mortgage lenders throughout the country -recorded 1,237,396 nonfarm mortgages of $20,000 or less in the -total amount of, $3,639,814,000. This compares with 1,537,314 mortgages in the amount of $4,519,573,000 during the preceding fiscal year. A breakdown of the figures, by types of lenders and by Federal Home Loan Bank Districts -and by States, is griven-in exhibit 6. Home-mnortgage debt.-After 5 years of continuous expansion, the nonfarm home-mortgage debt registered a decrease in the calendar year 1942. On December 31, 1942, the aggregate outstanding debt on one- to four-family dwellings was $19,917,000,000, at reduction of $178,000,000 from the $20,095,000,000 outstanding 1 year previous. This decrease compares with an increase of $992,000,000 during 1941. The decrease in 1942 was caused in part by an acceleratUed rate of repayment-made possible by highter incomes, and in part by the fact that new lending was largely for purposes of home purchase and refinancin~g.' New loans for these purposes do not cause -a great increase in the total mortgage debt inasmuch as these loans are frequently accompanied by the cancelation of previous mortgages. Construction loans, which do represent a net addition to the total mortgage debt, decreased substantially in volume during the year. The outstan ding mortgages of the-Home Owners' Loan Corporation were reduced by $210,000,000, or 12 percent during the calendar year 1942. Accordingly, if the mortgage portfolio of the Corporation is disregardedsthe com Ied otalof al1oter lnder incease 5 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION $30,000,000. An insignificant increase in outstanding mortgages was noted for savings and loan associations and commercial banks. -The major gain was effected by insurance companies, which increased their mortgage portfolios by 14 percent, or $279,000,OQO. Savings and loan associations retained their prominent position in the home-mortgage field, as is indicated by the fact that these insti tutions on December 31, 1942, held $4,565,000,000, or 22.9 percent of the total mortgage debt. The loans held by such institutions were exceeded only by those of the miscellaneous group, which held 31.9 percent of the mortgage debt. The following table summarizes the debt held by each type of mortgagee at the end of the last 2 calendar years. A survey of the estimated home-mortgage debt from 1929 to 1942 is presented in exhibit 7. Estimated balance of outstanding mortgage loans on nonfarm 1dwellings to 4-family [Millions of dollars] December 31 Per----------cent Type of mortgagee 1941 1942 Operating savings and loan associations-------------------------$4, 552 Insurance companies---------------------.-------------------1, 976 2, 730 Mutual savings banks ....--------------------------------------Commercial banks------------------------------------------2, 470 Home Owners' Loan Corporation------------------------------1,777 6, 590 Individuals and others------------------------------------Total......................................----------------------------------------.......------20,095 $4, 565 2, 255 2, 700 2, 480 1, 567 6, 350 +0.3 +14.1 -1. 1 +0.4 -11.8 -3.6 19,917 -0.9 Private savings.-Additions to total long-term savings of individu als during 1942 were more than twice as great as the largest annual increase during the last 22 years. The increase in savings represented by accounts in savings and loan associations, life-insurance policies, savings deposits in banks, postal savings, and United States savings bonds is estimated at $8,921,000,000 for 1942, as compared with $3, 907,000,000 for 1941. Total long-term savings in these selected forms are estimated to have been $70,461,000,000 on December 31, 1942, or about three and one-half times the 1920 total. The following table indicates the gain during 1942 in each of the se lected savings media. The distribution of long-term savings from 1935 through 1942 and an explanation of the source of these figures are pre sented in exhibit 8. Volume of long-term private savings in selected savings media [Millions of dollars] December 31-- Life insurance companies------------.------------------Mutual savings banks --- ----------...-----. ... -Insured commercial banks ----------------.-..----- Savings and loan associations -----------------------------Postal savings . . . . .. ... . . 21 percent postal-savings bonds -----United States savings bonds--...-------------........ --...... Total----------- ----------.--.......-- -- Increase Amount Percent' 1941 1942 $26,877 10,490 $29,043 10,621 $2, 166 131 8.1 1.2 13,261 13,820 559 4. 2 4,685 1,392 85 4,750 4, 950 1,417 84 10,526 265 25 -1 5,776 5. 7 1.8 -1.2 121.6 61,540 70,461 8,921 14.65 6 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION The investment in outstanding United States savings bonds (not including series F and G) represented, by far the greatest single increase in private savings. The $5,776,000,000 increase in invest ment in these bonds during 1942 was greater than the amount held in such form on December 31, 1941. Next in importance were the life-insurance companies, which received $2,166,000,000, an increase of 8.1 percent over the previous year. Savings bonds and life-insur ance companies absorbed 89 percent of the net additions to savings invested in'the media studied. Savings and loan associations led the banking groups in rate of growth, the savings held by the associations increasing 5.7 percent during the year. Deposits in insured commercial banks increased 4.2 percent. Postal savings and deposits in mutual savings banks increased 1.8 and 1.2 percent, respectively, while there was a small decrease in funds invested in postal savings bonds. Private savings continued the same trend during 1943. United States savings bonds continued to absorb the greatest proportion of these savings, as is indicated by the fact that outstanding savings bonds increased in value from $10,526,000,000 on December 31, 1942, to $14,895,000,000 on June 30, 1943. The increase of $4,369,000,000 during these 6 months compared with the increase of $5,776,000,000 during the whole of 1942. These figures do not include sales of F and G bonds, some of which are sold to individuals. The investment in savings bonds during the first 6 months of 1943 did not 1reduce the rate at which funds flowed to private financial institutions. Savings deposits held by mutual savings banks rose from $10,620,958 000 on December 31, 1942, to $11,104,707,000 on June 30, 1943. The increase of $483,749,000 during these 6 months was more than three times as great as the increase for the entire year 1942. During the first 6 months of 1943, insured savings and loan associations experienced an increase of $287,524,000, or 9.6 percent, in private share capital, as compared with $138,733,000, or 5.3 percent, during the same period of 1942. Postal savings increased by $160,120 000, or 11.3 percent, during the first 6 months of 1943, as compared with $1,163,000, or less than one-tenth of 1 percent in the first 6 months of 1942. Savings by private individuals throughout the Nation have reached an all-time high. This, of course, has been made possible by the increase in incomes resulting from war production, while limitations on production for civilian use have reduced the flow of goods which can be purchased with the augmented income. Such a situation insures that an unprecedented total of savings will be available after the war. These savings may be used to satisfy the desire for new housing that will undoubtedly exist when millions of servicemen and war workers resume normal civilian life. II. SAVINGS AND LOAN ASSOCIATIONS Funds used in this country to finance building and ownership of homes are derived largely from savings accumulated through the thrift of the American people. In part, savings are made available by direct loans from those who have done the saving. However, the greater portion of the savings used to finance homes are first collected by savings and loan associations, mutual savings banks, life insurance companies, and commercial banks. For the first three types of institutions the Federal Home Loan Bank System operates as a central credit reserve system. For savings and loan associations, the Bank Administration performs additional functions. Many of the associations are Federal savings and loan associations, chartered and supervised by the Federal Home Loan Bank Administration. Federal associations, and some of the State chartered associations, are insured by the Federal Savings and Loan Insurance Corporation, another of the component units of the Bank Administration. NUMBER AND ASSETS In recent years the total resources of member savings and loan associations of the Federal Home Loan Bank System, as well as of insured State and Federal associations, have been increasing rapidly, as is evident from the following table. Assets [Thousands of dollars] Date June 30, 1938 --------------------------June 30, 1939--------------------------------June 30, 1940 --------------------------------June 30, 1941 ------- -----------------June 30, 1942 ----------- -----------------June 30, 1943------- -------------------- All member savings and loan associations $3, 704,259 3,935,641 4,232,681 4,626, 920 4,885,049 5.249,414 All State / All Federal chartered insured asso- associations iations $769 827 899 654 983,367 1, 131,625 1,255, 307 1,454, 920 $1, 210, 744 1,439,988 1,725, 817 2.028,138 2,205, 921 2,426, 079 Uninsured associationsmember associations $2,113, 806 1,943,049 1,957,681 1,292, 245 1,170,926 1,061,147 Estimated. NOTE -Figures for State-chartered insured associations m this and the following tables include a few in sured associations which are not members of the Federal Home Loan Bank System On June 30, 1943, there were 4 of these associations with total assets of $5,665,000 During the fiscal year 1943 the total assets of all member associa tions increased by $364,365,000; the increase was $220,158,000 for Fed eral savings and loan associations and $199,613,000 for the insured State-chartered savings and loan associations. An-outstanding trend in recent\ years has been the rapid decrease ,in the number and re sources of that group of savings and loan associations which are not members of the Federal Home Loan Bank System. Membership of savings and loan associations in the Federal Home Loan Bank System, after an initial period of rapid increase, reached its 8 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION high point in 1938. Since that time, despite the increase in total assets, the number of member associations has decreased slowly because of miergers and consolidations. This is illustrated by the following table: Number All member All Statechartered savings and loan insured associations associations Date June June June June June June 30, 30, 30, 30, 30, 30, 1938---------------------------.---------3, 909 1939 ...------------------------------------.......... 3,897 1940---------.. ------------.....---------------3,865 1941----------..----.... ----------------------3,798 1942----------------.......... --------------------3,772 1943-------------------------------------3,729 681 790 816 861 910 960 All Fed- Uninsured nonmember eral eaassoassoci ciations ations 1,337 1,380 1,421 1,452 1,464 1,468 5,651 4,474 4,007 3,341 3,101 2,757 I Estimated. On June 30, 1943, the number of member associations was 3,729, as compared with 3,772 a year previous. The net decrease of 43 resulted from 53 admissions to membership and 96 terminations. Of the terminations, 44 were caused by merger, consolidation, or sale of assets to other member institutions, actions which did not result in the com plete withdrawal of the assets held by these institutions. On June 30, 1943, 37 applications for membership were pending as against 56 on June 30, 1942. In contrast to the slow decrease in the number of member associa tions, State-chartered insured savings and loan associations continued during the 1943 fiscal year the steady growth in number which was characteristic of recent years. The increase of 50 insured State chartered associations during the reporting period resulted from the granting of insurance to 53 associations and the termination of insur ance of 3 insured institutions. The number of Federal savings and loan associations increased slightly. Such associations increased by 4 during the 1943 fiscal year, compared with 12 the previous year and 31 2 years before. The net increase of 4 was the result of 23 additions and 19 terminations. Of the 23 additions, 2 were newly organized associations and 21 were converted State associations. The 19 terminations occurred as the result of 17 mergers, 1 involuntary liquidation, and 1 instance of dissolution and sale of assets. Nonmember institutions are decreasing rapidly in number as well as in total resources. There has been little net change in the average size of these nonmember institutions over the last 5 years, as shown in the following table: Average size of associations Date June 30, June 30, June 30, June30, June 30, June 30, 1938 -_1939 - --------------------------1940 1941 -11942 1943--_ -- 'Estimated. All member All Statesavings and chartered in- All Federal loan associa- sured associa- associations tions tions $947, 623 1, 009,916 1,095,131 1, 218, 252 1, 295,082 1, 407, 727 $1, 130, 436 1,138, 803 1, 205, 207 1, 314, 315 1, 379, 458 1,515, 542 $905, 568 1,043,470 1,214, 509 1,396, 789 1, 506, 777 1, 652, 642 Uninsured nonmembr associations $374, 059 434, 298 488, 565 386, 784 377, 596 384,892 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 9 Because of the increase in total resources of member institutions since June 30, 1938, and the slow decrease in numbers, the average size of member institutions increased by 48.6 percent. The growth and increasing importance of the System, therefore, appear largely due to the fact that the individual member institutions are growing rapidly in size and financial strength. The Congress, in providing for the establishment of Federal savings and loan associations, contemplated, first, that these associations would provide adequate thrift and home-financing facilities for locali ties which lacked such facilities and, second, anticipated that a group of home-financing institutions, operating with the highest standards and practices, would be developed under Federal charter. The aver age size of the Federal savings and loan associations is growing more rapidly than that of other member associations. In 1938 the Federal savings and loan associations, with an average size of $905,568 (see table) were smaller than either the State-chartered insured associa tions (average size of $1,130,436), or all member associations of the System (average size of $947,623). In contrast, on June 30, 1943, the average size of Federal savings and loan associations was $1,652,642, or more than the average for either State-chartered insured associa tions ($1,515,542) or for all member associations ($1,407,727). The increase in total assets of savings and loan associations resulted from the continued large flow of private share capital to such associa tions. During the 1943 fiscal year new share investments and re purchases of share capital proceeded at the rate indicated in the fol lowing table. Of the flow of new share investments to savings and loan associations, a smaller proportion is offset by repurchases by Federal associations than by either the State-chartered insured or all member associations. [Thousands of dollars] Ratio of re New share invest- ments All member savings and loan associations . ...------------. $1,221,468 349, 843 All State-chartered insured associations --------- ------663,428 All Federal associations- ..--------------------------178, 552 Uninsured nonmember associations ------------------ Repur- chases mets $721, 918 211, 733 345,861 133,888 Net in- crease $499, 550 138,110 317, 567 44,664 purchases new in to vestments Percent 59.1 60. 5 52.1 75.0 1 Estimated. As a result of this new private share capital, a high rate of repay ment of outstanding mortgages, and the difficulty of finding suitable investments, member associations during the 1943 fiscal year retired a substantial amount of their Federal Home Loan Bank advances, and Government share investments. By authorizations of Congress in 1933, 1934, and 1935, the United States Treasury invested $49,300,000 and the Home Owners' Loan Corporation invested $223,856,710 in savings and loan associations in order to increase the funds available for home financing. During the reporting period the outstanding balance of these investments was reduced from $186,512,410 to $119,887,410, a decrease of $66,625,000. Outstanding advances from the Federal Home Loan Banks decreased from $192,644,936 on June 30, 1942, to $90,191,577 a year later, a decline of $102,453,359. 10 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION QPERATIQNS IN A WARTIME ECONOMY Lending operations.-The war has had ani important influence on the lending operations of savings and loan associations. The con struction limitation _order of the War Production Board, effective on April 8, 1942, greatly reduced new construction after that date. Most residential construction since then 4as been confined to war housing required by workers migrating to war-production centers and defense areas. This situation naturally resulted in a rapid decrease in construction loans. During the fiscal year 1943, the first entire annual period in which the limitation was effective, construction loans by member savings and loan associations totaled $112,308,000, as against $311, 039,000 during 1942 and $389,559,000 during 1941. Loans of this type were 63.9 percent less during the fiscal year 1943 than during the previous year. Reconditioning loans likewise decreased, undoubtedly by reason of the same restrictions. During 1943 loans for recon ditioning purposes amounted to $29,070,000, as compared with $43,503,000 the year before. New loans made by member associations, by purpose Purpose of loan Cdnstructin.... ...------------------. ------------------... Home purchase ...-------------------------------------. Refinancing ----------------------------------------Recohditioning -------------------------------------Other purposes . .....--------------------------------------Total.--------------------------------- ------- July 1, 1941, to June 30, 1942 July 1, 1942, to June 30, 1943 Percent change $311, 039, 000 477, 193, 000 152, 561, 000 43, 503, 000 79, 149, 000 $112, 308, 000 545, 580, 000 148, 017, 000 29,070, 000 60, 559, 000 -63 +14 -3.0 -33 -23 9 3 1, 063, 445, 000 895, 534, 000 1-15 8 2 5 The large decrease in construction loans and smpller decreases in loans for refinancing, reconditioning, and other purposes were offset in part by the increase in loans made to finance the purchase of homes. Loans for this purpose aggregated $545,580,000 during 1943, as com pared with $477,193,000 during 1942 and $388,376,000 during 1941. The growth in loans for home purchase was the natural accompani ment of the purchase of homes by war workers and others with rising incomes. As a result of the increase in loans for home purchase, at a time when loans for other purposes were decreasing, such loans acc9unted for 60.9 percent of total loans by member institutions in the fiscal year 1943, as compared with 44.9 percent in 1942, and 35.8 percent in 1941. The changes in the purposes for which loans were made during the last few years are shown in exhibit 9. Mortgage loans are still made in substantial volume. However, in contrast with conditions existing a few years ago, present lending is not resulting in any addition to the total outstanding mortgage debt. During the calendar year 1940, when $3,270,000,000 was loaned on one- to four-family dwellings by all types of lending insti tutions, there was-a net increase of $27 in outstanding mortgages for every $100 of new loans. -In 1941 new loans increased to $3,768,-, 000,000, and there was a net increase of $26 in outstanding loans for every $100 of new loans. However, in 1942, despite the fact that total new loans of $3,082,000,000 were not much below the total REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 11 amount loaned during 1940 there was a decrease of $6 in outstanding loans for each $100 of new loans made during the year. Undoubtedly, the two most important reasons for this sharp reversal were (1) the fact that mortgages ar3 now being repaid at a rapid rate because of higher incomes and (2) the shift in mortgage lending from construction loans to loans for home purchase. New loans made for home purchase, which represented such a large pro portion of the total during 1942, are frequently offset in large part by the cancelation of existing mortgages. The same is true of re financing mortgages. Reduction in the outstanding total of mortgage loans, together with the continued flow of savings funds toward financial institutions, has resulted in a competitive market for mortgage loans. With lend ing institutions competing for good loans in order to invest their funds, there is danger that lending standards will be lowered. For this reason it is more than ever important that lending institutions at the present time place emphasis on accurate appraisals and careful analysis of risk in making loans. 1 Service to the public.-The increase in the private share capital of savings and loan associations and the stagnation in their total of outstanding mortgage loans, both of which have already been dis cussed, represent important investment problems for savings and loan associations. Funds now being received by these associations are, of course, invested largely in United States bonds in furtherance of the war effort. Insured savings and loan associations increased their holdings of such bonds from $70,852,000 on June 30, 1942, to $376, 177,000 on June 30, 1943. Increasedstrength of savings and loan associations.-Savingsand loan associations arenow in a strong position. By the end of 1942 the assets of reporting member savings and loan associations of the Federal Home Loan Bank System passed the $5,000,000,000 mark for the first time. Liquid assets increased markedly during 1942. Cash increased approximately $58,000,000 to a total of more than $336,000,000, while United States Government obligations increased approximately $185,000,000 to a total of about $260,000,000. As a result, cash and Government securities held by member associations on December 31, 1942, were 14.5 percent of total private repurchasable capital, as com pared with 9.4 percent for the previous year and 8.5 percent for 1940. The strength of member associations of the System was also increased by the repayment of borrowed funds and by the disposition of the real-estate "overhang" discussed previously. In addition, the growth in average size, of member associations is making it possible for an increasing number of them to 'obtain full-time experienced manage ment and to operate in ground-floor quarters of a type that will promote the prestige of the System and increase public confidence. These conditions are all improving the ability of the member asso ciations and of the Federal Home Loan Bank System to meet post-war problems. With the disappearance of the real-estate overhang, and the increase in resources, liquidity, and borrowing power, the ability of the savings and loan associations to serve the public is growing rapidly. 1 For a more extensive discussion of this subject, see the article, Lending Policies in a Competitive Market on page 323 of the August 1943 issue of the Federal Home Loan Bank Review. 64952-44- 3 12 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION FINANCIAL OPERATIONS Balance sheet.-The continued financial growth of member savings and loan associations is reflected in the consolidated balance sheet as of, the close of the calendar years 1941 and 1942, contained in exhibit 10. From a study of this balance sheet, it will be noted that the total assets of member savings and loan associations increased from $4,797,758,000 on December 31, 1941, to $5,025,451,000 at the end of 1942. During the same period the assets of all State-chartered insured associations increased from 24.7 percent of the total for all member associations to 26.7 percent; the assets of Federal savings and loan associations in creased from 45.1 percent of the total to 45.7 percent. The greater proportion of assets held by State-chartered insured savings and loan associations is due not only to the growth in size of the individual asso ciations, but also to the insurance of previously uninsured associations. First-mortgage loans, including interest and advances, held by all member savings and loan associations grew from $3,788,190,000 on December 31, 1941, to $3,863,832,000 a year later, a growth of 2 percent. The rate of growth of first-mortgage loans held by the Fed eral savings and loan associations was approximately the same. However, first mortgage loans held by all State-chartered insured associations increased from $921,661,000 to $1,010,969,000, or 9.7 percent during the year. Real estate owned by all member associations declined from $189,429,000 to $124,752,000 during the calendar year, a decrease of 34.2 percent. Real estate owned by State-chartered insured asso ciations and by Federal savings and loan associations declined by 30.8 and 28.8 percent, respectively. Growth in liquidity is indicated by the fact that the cash held by all member savings and loan associations increased from $278,696,000 to $336,281,000, or 20.7 percent. Cash held by Federal savings and loan associations advanced 19 percent, while the greatest percentage increase was experienced by cash holdings of all State-chartered insured associations-33.5 percent. Holdings of United States Gov ernment obligations by member associations increased severalfold during the year. For all member associations the growth was from $75,244,000 to $259,678,000, or 245 percent. For State-chartered insured associations the increase was 268 percent, while the most rapid growth was that of Federal savings and loan associations, whose holdings of United States Government obligations rose 378 percent. On the capital and liability side of the ledger the private repurchas able shares of member savings and loan associations increased 10 per cent, compared with an increase of 13 percent for Federal savings and loan associations and 19 percent for State-chartered insured associa tions. Advances from Federal home-loan banks and other borrowed money decreased from $239,226,000 for all member savings and loan associations on December 31, 1941, to $142,682,000 a year later, a drop of 40.4 percent. Advances and borrowings of Federal savings and loan associations arid of insured associations decreased by com parable percentages during the year. General reserves and undivided profits and surplus held by all member savings and loan associations went from $327,594,000 6n December 31, 1941, to $368,400,000 a year later. This represented an increase from 6.8 percent of total assets to 7.3 percent of total assets REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 13 during the calendar year. The growth was more rapid ,for Federal savings and loan associations and for State-chartered insured associa tions. The general reserves and undivided profits of Federal savings and loan associations increased from 5.1 percent of total assets on December 31, 1941, to 5.8 percent of total assets on December 31, 1942. For State-chartered insured associations, the similar increase was from 7.6 to 8.1 percent during the calendar year. Statement of operations.-A consolidated statement of operations for all reporting member associations, State-chartered insured asso ciations, and Federal associations is presented in exhibit 11. For the 3,722 reporting member savings and loan associations, gross oper ating income totaled $255,328,422. Of this, 88.55 percent was ob tained as interest from mortgage loans. For State-chartered insured associations the percentage was 85.57, while 90.65 percent of the gross income of Federal savings and loan associations was obtained as interest from mortgages. Of net income received, 70.65 percent was paid out as dividends by the reporting member associations. State-chartered insured associa tions paid 71.26 percent of net income as dividends' and Federal asso ciations paid 68.70 percent, the smallest percentage of net income as dividends. Approximately three-tenths of net income was trans ferred to reserves and undivided profits. IIL FEDERAL HOME LOAN BANK ADMINISTRATION Under the provisions of the First-War Powers Act, 1941, the Presi dent of the United States, by Executive Order No. 9070, dated February 24, 1942, placed all Government agencies relating to urban housing under a newly created National Housing Agency, under the direction of an Administrator. The Federal Hom'e Loan Bank Administration is one of the three pfincipal units designated by the President's Executive Order to comprise the National Housing Agency. Pursuant to the terms of this Executive Order, the Federal Home Loan Bank Administration, under the direction of a Commissioner, con tinues to exercise the functions, powers, and duties which the Federal Home Loan Bank Act, as amended, conferred upon the former Federal Home Loan Bank Board. The major components of the Federal Home Loan Bank Adminis tration are the Federal Home Loan Bank System, the Federal Savings and Loan Insurance Corporation, and the Home Owners' Loan Cor poration. Functions relating to the United States Housing Corpora tion, which was formed during the last war for the purpose of housing workers in congested war-industry areas, have been administered in the Federal Home Loan Bank Administration since 1942. In the performance of its functions, the Federal Home Loan Bank Administration receives recommendations from the Federal Savings and Loan Advisory Council, which is authorized to confer with it on general business conditions and on special conditions affecting the Federal Home Loan Banks and their members and the Federal Savings and Loan Insurance Corporation. Two meetings of this Council. which was created by an amendment to the Federal Home Loan Bank Act, were held during the fiscal year. A list of the members of the Council as of June 30, 1943, is contained in exhibit 12. ADMINISTRATIVE EXPENSES OF THE FEDERAL HOME LOAN BANK ADMINISTRATION The Federal Home Loan Bank Administration obtains its operating funds by assessments upon the Federal Home Loan Banks, charges made for services rendered to the Federal Savings and Loan Insurance Corporation and the Home Owners' Loan Corporation, as well as from fees received for the examination of home-financing institutions. Expenses of the Administration's Examining Division, which con stitute the major portion of the Administration's authorized operating budget, are reimbursed by the institutions examined. During the fiscal year 1943 total receipts of the Federal Home Loan Bank Ad ministration amounted to $1,357,747, as compared with $1,608,790 for the previous fiscal year. In addition, a cash balance of $353,374 was carried over at the beginning of the fiscal year 1943. Adminis trative disbursements during the same two periods aggregated 14 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 15 $1,302,002 (1943) and $1,495,375 (1942), respectively. The cash balance as of June 30, 1943, amounted to $409,119. Exhibit 13 presents detailed information with respect to administrative receipts and disbursements for the last 2 fiscal years. The personnel of the Federal Home Loan Bank Administration (Federal Home Loan Bank System) totaled 319 at the close of the reporting period. Of this total 233 employees constituted the staff of the Examining Division. Exhibit 14 contains a summary of personnel, by departments, as of June 30, 1942, and June 30, 1943. IV. FEDERAL HOME LOAN BANK SYSTEM The Federal Home Loan Bank System entered upon the second decade of its existence during the fiscal year 1943. The number and assets of member institutions at the close of the previous and present fiscal years are reflected by Federal Home Loan Bank Districts and by States in exhibit 15. The following tabulation reflects the total number and approximate assets of member institutions of the Federal Home Loan Bank System as of June 30, 1942, and June 30, 1943: Number and assets of member institutions of the Federal Home Loan Bank System, June 30, 1942, and June 30, 1943 [Dollar amounts in millions] June 30, 1942 Number Savings and loan associations: Federal associations - -_. --State-chartered insured member asso ciations -----.--.. .. Uninsured member associations ----. Assets . June 30, 1943 Number Assets Net change Number Assets 1, 464 $2, 206 1,468 $2, 426 +4 +$220 906 1,402 1, 250 1,429 956 1,305 1, 449 1, 374 +50 -97 +199 -55 All member associations... -------.. 3, 772 Other member institutions: Savings banks------------------------17 Insurance companies- ...----------------.. 26 4,885 3, 729 5, 249 -43 +364 341. 418 22 23 429 367 +5 -3 +88 -51 5, 644 3, 774 6, 045 -41 +401 All member institutions- .. .... 3,815 • Lending activity of Regional Banks.-FederalHome Loan bank ad vances outstanding on June 30, 1943, aggregated $90,191,577, or 53 percent less than the total advances of $192,644,936 outstanding at the close of the previous year. Advances made by the Federal Home Loan Banks to member institutions during the fiscal year 1943 aggre gated $96,346,313, the smallest amount advanced during any year since 1939. On the other hand, repayments reached a new peak of $198,799,672. From the beginning of operations through June 30, 1943, the Federal Home Loan Banks have made total advances of $1,025,280,215, of which $935,088,638 was repaid. Advances outstanding to members which, as already indicated, totaled $192,644,936 on June 30, 1942, declined thereafter to March 31, 1943, when such advances reached $78,606,524, the lowest amount outstanding at the end of any month since May 1935. The increase during April 1943 of $8,762,476 in advances outstanding was almost offset by a decline of $8,137,641 during the month of May. An increase of $10,970,217 during June resulted in outstanding advances as of June 30, 1943, totaling $90,191,577. The ratio of short-term advances of 1 year or less to total advances outstanding continued to increase during the fiscal year 1943. On June 30, 1943, short-term advances represented 51.3 percent of total advances outstanding, as compared with 41.6 percent at the close of the previous fiscal year. Lower interest rates charged by several of 16 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 17 the Federal Home Loan Banks on short-term advances, together with a reducedo demand for long-term money on the part of member insti tutions, may be considered as the principal reasons for this trend. There was but little change in the ratio between secured and unsectired advances during the fiscal year 1943. Exhibit 16 contains detailed information reflecting the various changes in advances made by the Federal Home Loan Banks during the fiscal year 1943, together with a summary of lending activity in previous years. As of June 30, 1943, no borrowers from the Federal Home Loan Banks were more than 30 days delinquent on such indebtedness. As of that date, one member borrower in liquidation was indebted to a Federal Home Loan Bank in the amount of $6,427, the entire amount of which was represented by unmatured principal installments. This indebtedness was amply secured by home mortgages pledged with the lending Bank, the estimated value of which was $22,083, and a statu tory lien on such borrowing member's stock in the Federal Home Loan Bank having a paid-in value of $3,000. As in previous years, the indebtedness to the Federal Home Loan Banks of Federal savings and loan associations constituted the larger part of the Banks' outstanding advances. On June 30, 1943, 386 Federal associations accounted for advances of $56,600,000, or 62.7 percent of the outstanding advances of the Banks on that date. As of the same date the outstanding advances to 254 insured State chartered members totaled $22,500,000, while the outstanding ad Svances to uninsured State-chartered member institutions totaled $11,100,000. During the fiscal year 1943 a majority of the Banks amended their effective interest rates on advances to members and modified the limitations placed upon advances. In general, the changes which were made resulted in decreases of one-half of 1 percent in the interest rates affected. Rates of interest on advances to members are estab lished by the board of directors of each Bank, within the range estab lished by the Federal Home Loan Bank Administration, which at present permits a maximum of 3 percent. Exhibit 17 reflects the effective interest rates charged on advances by each of the Federal Home Loan Banks as of July 1, 1943. Members' deposits.-Total deposits of members in the Federal Home Loan Banks increased to the extent of $1,500,000 during the fiscal year 1943. During this period members' time deposits increased $5,000,000, which increase, however, was offset by a decrease of $3,500,000 in 'demand deposits. This shift from demand to time deposits may be attributed to a lack of demand upon the members for home loans, thus enabling them to place excess funds on a time deposit basis with the Federal Home Loan Banks. The fact that mem bers' deposits did not reflect a greater increase during the year may be attributed to their large purchases of Government securities and the retirement of investments made by the United States Treasury and the Home Owners' Loan Corporation in the shares of member insti tutions. Interest may be paid by the Federal Home Loan Banks on time deposits remaining for 30 days or more, at rates established by the board of directors of each Bank, within ranges fixed by the Federal Home Loan Bank Administration, which permit the payment of interest on such deposits up to 2 percent per annum. As of June 30, 1943, 11 of the Federal Home Loan Banks were paying interest on members' time deposits at the rate of one-half of 1 percent per annum. 18 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION Debenture financing.-At the beginning of the fiscal year 1943 cthe total amount of consolidated Federal Home Loan Bank debentures outstanding aggregated $91,500,000. As of June 30, 1943, the con solidated debentures outstanding totaled $35,000,000. Up to the close of the year covered by this report a ready market has been found for the sale of consolidated Federal Home Loan Bank debentures and no difficulty has been encountered in thus financing the cash require ments of the 12 Federal Home Loan Banks. Consolidated Federal Home Loan Bank Debentures, which represent the joint and several obligations of all Federal Home Loan Banks, are not guaranteed by the United States Government either as to principal or interest. It is the policy of the Federal Home Loan Bank Administration to issue such debentures only when the cash available in the 12 Federal Home Loan Banks is deemed insufficient to meet their anticipated requirements. From the beginning of operations to the close of the current fiscal year, the total debentures issued aggregated $363,200,000, of which $328,200,000 was retired and/or refunded at maturity, resulting in the balance of $35,000,000 outstanding, as above indicated. Financial statements.-A statement reflecting the condition of the 12 Federal Home Loan Banks, on an individual and consolidated basis, will be found in exhibit 18. The primary change reflected in such statement may be said to be the net repayment of advances by mem bers aggregating $102,453,359, hereinbefore referred to. The funds thus made available as the result of these repayments, together with available cash on hand at the beginning of the fiscal year 1943, en abled the Federal Home Loan Banks to reduce their outstanding deben ture liability to the extent of $56,500,000, and to make a net invest ment of approximately $85,600,000 in Government securities during the fiscal year 1943. These changes' primarily accounted for the decline in cash of the Federal Home Loan Banks from $47,300,000 on June 30, 1942, to $14,800,000 on June 30, 1943. The Federal Home Loan Banks increased their investments in obligations of, or guaranteed by, the United States from $69,367,915 on June 30, 1942, to $154,931,939 on June 30, 1943. There was an increase of $3,929,200 in stock in the Federal Home Loan Banks owned by member institutions during the fiscal year 1943, which compares favorably with the increase of $4,249,450 reflected during the preceding fiscal year. The amount of stock in the Federal Home Loan Banks owned by the United States (Recon struction Finance Corporation) remains unchanged at $124,741,000. The Federal Home Loan Bank Act provides that after the amount of capital of a Federal Home Loan Bank paid in by members equals the amount paid in by the Secretary of the Treasury * * * such bank shall apply annually to the payment and retirement of the shares of the capital stock held by theUnited States, 50 per centum of all sums thereafter paid in as capital until all such capital stock held by the United States is retired at par. The increase in stock owned by member institutions in one of the Federal Home Loan Banks would indicate that, if the previous trend of purchases of stock by members continues, that Federal Home Loan Bank will soon be in position to begin retiring the stock owned by the Reconstruction Finance Corporation in such bank, pursuant to the above-quoted provision in the act. The following tabulation reflects the capital stock structure of the 12 Federal Home Loan Banks as of June 30, 1943: REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 19 CAPITAL Capital stock (par): Members (fully paid) -----------------Members (partially paid) --Total ----------------------------------Less unpaid subscriptions - --------------------- $54, 627, 157, 54, 784, 64, 54, 720, 300.00 600. 00 900. 00 050. 00 850. 00 U. S. Government, now owned by Reconstruction Finance Corporation (fully paid)-------------------124, 741, 000. 00 Total paid in on capital stock179, 461, 850. 00 Surplus: Reserve as required under sec. 16 of the Act---------------Reserve for contingencies ----------------------Total surplus ------Undivided profits Total surplus and undivided profits ---------Total capital --------------------------- 7, 292, 2, 170, 9, 462, 6, 680, 16, 143, 016. 39 531. 03 547. 42 848. 96 396. 38 195, 605, 246. 38 A comparison of, reserves and undivided profits of the Federal Home Loan Banks as of June 30, 1942, and June 30, 1943, is reflected in the following tabulation: June 30, 1942 -------------------------Reserve required by see. 16 of Act---------Reserve for contingencies-------------------------------------------------------------..-------------------------Undivided profits---.. Total..--- ---------------...------------------------. June 30, 1943 $6, 505, 036 53 1, 792, 157 47 5, 808, 727 26 $7, 292,016. 39 2,170, 531 03 6, 680, 848.96 14,105, 921. 26 16,143, 396. 38 The Federal Home Loan Banks have consistently maintained higher reserves and undistributed earnings than required by statute. As of June 30, 1943, the total earned surplus was 221 percent of the legal reserve requirements. An analysis of the surplus and undivided profits of the Federal home-loan banks for the period covered by this report is presented in exhibit 19. A statement of profit and loss of the Federal Home Loan Banks for the fiscal year 1943 will be found in exhibit 20. The consolidated gross income of the Banks during the year aggregated $5,823,440, as compared with $6,559,202 for the previous fiscal year. This decline of $735,762 was largely the result of repayment of advances during the fiscal year 1943. Operating expenses of the 12 Banks declined from $2,212,090 during the previous fiscal year to $2,052,912 during the 1943 fiscal year. The net income of the Federal Home Loan Banks for the fiscal year 1943 aggregated $3,669,550, a decrease of 14.4 percent from the net income of $4,285,630 reported during the pre ceding fiscal year. Dividends declared by the Federal Home Loan Banks during the year covered by this report aggregated $1,897,436. Of this amount $1,339,582 was paid to the Reconstruction Finance Corporation and $557,854 to member institutions. The total amount of dividends paid )during the current year, $1,897,436, represents a reduction of 14.3 percent as compared with the amount of dividends ($2,213,701) declared by the Banks during the preceding fiscal year, From the beginning of operations through June 30, 1943, the 12 Fed eral Home Loan Banks have declared dividends totaling $20,310,127, of which $15,527,075 was paid on stock subscribed by the United States Government and $4,783.,052 was applicable to stock owned by the member institutions. 64952-44- 4 V. FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION The Federal Savings and Loan Insurance Corporation was created in 1934 by title IV of the National Housing Act, with the primary objective of safeguarding small savings in order to restore and main tain public confidence in thrift and home-financing institutions, to facilitate and stabilize home-mortgage lending by reviving and main taining the flow of private money into savings and loan associations, and to bring about a greater degree of stability in savings and loan operations by spreading the risk of loss according to accepted insurance principles. During the existence of the Corporation of almost a decade, the wisdom of the Congress in providing for insurance of accounts of investors in savings and loan associations has b3come increasingly evident. The gratifying growth of the number of insured institutions and of their resources testifies to the public acceptance of the principle of insurance of accounts. Insured institutions.-The number of savings and loan associations insured by the Federal Savings and Loan Insurance Corporation increased from 2,374 to 2,428 during the fiscal year 1943. Total assets of insured institutions increased from $3,461,228,000 to $3,880, 999,000 during the same period. Detailed information showing the progress in the number and assets of insured associations by F3 deral Home Loan Bank Districts and by States is presented in exhibit 21. Operations of insured savings and loan associations have been dis cussed previously in chapter II. Operations of the Insurance Corporation.-Thestatement of condi tion of the Federal Savings and Loan .Insurance Corporation as of June 30, 1943, is given in exhibit 22. Total assets on that date were $143,249,154, as compared with $134,371,152 a year previous. Re serves and surplus on June 30, 1943, amounted to $41,406,963, as compared with $32,665,905 on June 30, 1942. Included in reserves and surplus as of June. 30, 1943, is a special reserve for contingencies, in the amount of $24,000,000, which is equivalent to the amount of cumulative dividends since June 30, 1935, on the capital stock of the Corporation. The Corporation, since its inception, has followed the practice of building its surplus and reserves as rapidly as possible, recognizing that any insuring operation Tequires an adequate cushion against future losses. The insured liability of the Insurance Corporation, representing the total of all insured accounts up to $5,000 each, plus all creditor obligations of insured associations, totaled $3,237,364,000 on June 30, 1943, as compared with $2,772,012,000 at the close of the 1942 fiscal year. In terms of the relationship of liability to resources of the Corporation, there was on June 30, 1943, for each dollar of capital, reserves, and surplus of the Corporation, a potential liability of $22.89. Income of the Federal Savings and Loan Insurance Corporation is derived from annual premiums paid by insured institutions, from admission fees paid by associations newly entering the System, and 20 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 21 from interest on investments. All income over and above expenses is allocated to reserves, and losses of the Corporation in connection with insurance settl3ment cases are charged to these reserve accounts. Premium income earned during the fiscal year 1943 totaled $4,000,101, as compared with $3,534,952 for the preceding reporting period. The annual premium paid by an insured institution equals one-eighth of 1 percent of all accounts of its insured members plus its creditor obligations. Admission fees, charged on the basis of 4 cents for each $100 of the total amount of the institution's accounts of an insurable type plus all obligations to its creditors, totaled $37,151 during the 1943 fiscal year as compared with $27,502 in the preceding period. The Insurance Corporation's investment income from July 1, 1942, to June 30, 1943, amounted to $3,556,881. Profits from the sale of securities totaled $2,061,498. This figure is larger than normal because of the fact that, during the fiscal year 1943, the Insurance Corporation deemed it advisable to dispose of certain securities having an early call date and invest the proceeds in United States Treasury bonds running for a longer term. Including miscellaneous items, the aggregate income of the Corporation totaled $9,655,650 during the reporting period, an increase of $2,480,650 when compared with the preceding year. The Corporation's administrative expenses amounted to $293,448 during the period under review. Nonadministrative expenses totaled -$38,641. After deduction of these administrative and nonadminis trative expenses from gross income, the net income of the Corporation during the 1943 fiscal year amounted to $9,323,561, as against $6,817,203 the year previous. A detailed statement of income and expense for the fiscal year 1943 will be found in exhibit 23. Total personnel actively employed by the Corporation on June 30, 1943, numbered 67. The Corporation is able to operate efficiently with this small staff because, under a cooperative arrangement, it is able to utilize the various service divisions of the Federal Home Loan Bank Administration on a reimbursable basis and does not have to maintain such departments of its own. At the present time the Corporation is able to maintain its administrative expenses at a figure lower than the interest income from its invested reserves. Insurance settlements.-Congress established the Federal Savings and Loan Insurance Corporation to bring about a greater degree of stability in savings and loan operations by spreading the loss risk according to accepted insurance principles. It was to be expected that- a certain number of problem cases would develop, for in any insuring operation losses are as much a part of normal operations as premium ircome. During 9 years of operation 36 insured associations have experi enced difficulties requiring corrective action by the Insurance Cor poration. In 2 of these cases the Corporation determined after careful study that no financial assistance was necessary. These associations have continued normal operations. In 25 of the remain ing 34 cases the Corporation made net cash disbursements aggregating $4,819,028.15 to prevent default. Recoveries received through June 30, 1943, in the amount of $102,373.52, have been deducted from gross disbiffsements to arrive at the foregoing figure for net cash disburse ments. Additional contingent commitments to 4 of these associations 22 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION were still outstanding on June 30, 1943, in the amount of $208,489.11. Of the 25 associations which had received cofitributions from the Corporation as of June 30, 1943, 17 have continued operations as separate units; 5 have merged with other insured institutions; and 3 have subsequently liquidated voluntarily, paying all investors in full. Seven institutions have been declared in default and placed in liquidation. Also, at the close of the fiscal year 1943 the Insurance Corporation was studying one association to determine whether or not some form of corrective action should be taken and had made a commitment of $158,455.65 to another association to prevent a declara tion of default. It is estimated that the final losses which will be sustained from the contributions and commitments made by the Insurance Corporation on or before June 30, 1943, and from insured associations placed in liquidation before thtat date, will total $5,940,771.85. Analysis of the difficulties encountered by the 34 associations with which the Corporation has dealt indicates that adverse econjomic conditions, coupled with weak management, are by far the most important causes of institutional difficulties. These 2 factors were responsible for losses in 22 of the 34 cases. Outright dishonesty on the part of .association employees or breach of trust, on the part of management accounted for the difficulties experienced by the re maining 12 institutions. Upon receipt by the Corporation of information that an insured institution is threatened with default, the Corporation makes a preliminary analysis of the condition of the association and of the various factors-which caused the problems of the association. If, thereafter, the case is certified to the Corporation as an insurance case, the Corporation, after further consideration of. information concerning the association, determines either that it will propose to prevent a declaration of default of the institution, or that it will not interpose to prevent liquidation. Under the statute the Insurance Corporation has authority- to prevent the default of an insured insti tution or to restore an insured institution in default to normal opera tions by means of a loan, contribution, or purchase of assets. The Corporation had not at the close of the fiscal year 1943 made a loan to prevent default of an insured institution nor had it purchased assets from an insured institution. It is possible that one or both of these methods of preventing default or removing impairment of insured institutions may be employed in connection with future loss cases. Whenever an insured association is declared in default and is placed in liquidation, the Corporation makes prompt determination of the insured members of the association and makes available to each in sured member, upon surrender and transfer to the Corporation of his insured account, at his option, either (1) a new insured account in an insured institution not in default, in an amount equal to the insured account so transferred, or (2) the amount of his account which is insured, as follows: 10 percent in cash, 45 percent in negotiable non interest-bearing debentures of the Corporation due within 1 year from the date of the default, and 45 percent in such debentures due within 3 years from the date of default. Practically all the insured investors in each of the seven insured associations which have been placed in liquidation have elected to REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 23 accept the first method of settlement, i. e., a new account in a nor mally operating insured association. To date, less than one-fifth of 1 percent of the claims settled have been paid by the cash and deben ture method. As of June 30, 1943, 99.69 percent of'the estimated dollar amount of the insured claims of all insured associations placed in liquidation had been settled. This involved issuance by other insured institutions of new share accounts amounting to approxi mately $6,672,000, and payment by cash and debentures in the amount of $13,200. During the fiscal year 1943 the Corporation extended financial aid in the form of contributions, or payments made on con tingent 'commitments previously authorized, in the total amount of $638,466.82. Operations of insured institutions in default.-No insured association was placed in receivership during tle fiscal year 1943. Of seven insured associations previously placed in receivership one was ter minated during the reporting period, leaving six in receivership on June 30, 1943. Four of these six associations are Federal savings and loan associations for which the Insurance Corporation is acting as receiver. The other two are State-chartered associations in liquida tion under a State Building and Loan Department. The Corporation, through its subrogation of insured claims, has a major claim to the proceeds from the assets of all irisured institutions in liquidation and takes an active interest in the liquidation of State-chartered institutions. Comparative statements of condition and operation for the associa tions in receivership on June 30, 1943, are shown in exhibit 24. The liquidations are progressing favorably. As shown by the comparative statements, partial liquidating dividends were declared in five receiver ships to June 30, 1943. A final liquidating dividend of 47.6 percent was declared in the liquidation of one very small receivership con summated prior to such date, which represents the total recovery by the Corporation in this case. It is estimated that the Corporation, in the six cases still in liquidation will recover an amount aggregating approximately 89 percent of the funds disbursed in the payment of insurance to insured members thereof. VI. HOME OWNERS' LOAN CORPORATION GENERAL OPERATIONS During the 3 years from June 13, 1933, through June 12, 1936, the Home Owners' Loan Corporation refinanced the mortgage loans of 1,017,821 individuals, all of whom were in financial .distress and in danger of losing their homes. Mortgage loans made by the Corpo ration originally totaled $3,093,451,321. In servicing these loans it was found necessary to advance supplementary amounts, primarily to make funds available to pay delinquent taxes. The Corporation also found it necessary to foreclose on some of the properties, thus increasing the Corporation's investment through the capitalization of delinquent interest and taxes, foreclosure and acquisition costs, and reconditioning expenses. These advances and capitalizations through June 30, 1943, aggregated $390,596,585. Accordingly, the gross cu mulative investment resulting from the Corporation's lending program to aid American home owners reached a total of $3,484,047,906 at the end of the 1943 fiscal year. Since June 12, 1936, the major responsibility of the Home Owners' Loan Corporation has been to liquidate its affairs as orderly and as economically as possible. The success of the Corporation's efforts to carry out this liquidation as promptly as possible may be noted from the following facts: Before the end of the fiscal year 1943 the Home Owners' Loan Cor poration had completed more than half its liquidation. The total balance of mortgage loans, vendee accounts, and property accounts was reduced from $1,938,195,197 at the beginning of the 1943 fiscal year to $1,632,451,939 at the end of the year, a decline of $305,743,258, or 15.8 percent. The decrease from the cumulative gross investment of $3,484,047,906 to $1,632,451,939 on June 30, 1943, means that the liquidation of the Corporation was 53.1 percent completed at the end of the reporting period. The reduction in operating assets, is sum marized in the following table: Original amount loaned------------------------------------ $3, 093, 451, 321 Subsequent advances to borrowers, net additions included in 390, 596, 585 capitalized value ,of properties, etc_ ----------------------Original loans plus advances, capitalized additions, etc . 3, 484, 047, 906 Outstanding on June 30, 1943: Mortgage loans and advances----------$1, 081, 052, 506 Vendee accounts, advances, and unposted 360, 100, 605 advances -------------------------Property acquired and in process of acqui 191, 298, 828 sition-----------------------------Total outstanding------------------------------ 1, 632, 451, 939 Net reduction in operating assets------------------ 1, 851, 595, 967 24 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 25 Investments by the Home Owners' Loan Corporation in the share capital of savings and loan associations were reduced rapidly during the 1943 fiscal year. In 1935 Congress' authorized these investments to stimulate the home-mortgage market. The cumulative invest ment by the Corporation in savings and loan associations through June 30, 1943, was $223,856,710. Of this investment, $115,453,300 has been retired, reducing the net investment on June 30, 1943, to $108,403,410. 'More than half of the retirement was effected during the 1943 fiscal year alone. Liquidation of debtor and property accounts and retirement of investments in savings and loan associations have permitted the Corporation to reduce its bonded indebtedness. Outstanding bonds of the Corporation decreased from a peak of $3,047,046,575 on May 31, 1936, to $1,735,509,700 on June 30, 1943. The Home Owners' Loan Act of 1933, as amended, requires that all payments upon prin cipal of loans made by the Corporation shall, under regulations made by the Corporation, be applied to the retirement of the bonds of the Corporation. Certain other receipts, such as amounts received by the Corporation as a result of the repurchase of shares purchased by it in savings and loan associations, are also applied to bond retire ment. The total applicable to the retirement of bonds through June 30, 1943, was $1,762,151,899. Funds in this amount have been deposited with the Treasurer of the United States and have been used to retire bonds or are available for future retirements, as shown ,in the following table: Disposition of funds allocated (through June 80, 1943) to bond-retirementfund Applied to retirement of bonds----------------------------Deposited for matitred bonds on which interest has ceased-.. Available for future retirement of unmatured bonds ---------Gross amount deposited in bond-retirement fund-..---. Balance due retirement fund for June 1943 deposited in July 1943 -----------------------------------------.. $1, 753, 830, 905 6, 027, 900 100, 867 1, 759, 959, 672 2, 192, 227 Total applicable to bond retirement.------------------1, 762, 151, 899 The Corporation's major bond repayments during the 1943 fiscal year were made on the Q series of outstanding bonds. This was a 1-percent series issued in the total amount of $560,000,000. The series Q bonds were redeemable at the option of the Home Owners' Loan Corporation and bore a maturity date of July 1, 1943. During the fiscal year 1943, $364,000,000 of these bonds were redeemed by the Corporation. The remaining $196,000,000 still outstanding on July 1, 1943, were extended for 1 year to July 1, 1944. Because of the redemption of 1-percent bonds during the reporting period, the average interest rate on the outstanding bonds of the Corporation (exclusive of bonds on which interest had ceased) increased from 1.928 percent on June 30, 1942, to 2.118 percent on June 30, 1943. This increase in the interest rate during the fiscal year 1943 was more than offset during the next fiscal period by the refunding at a lower interest rate of a large bond issue which was callable in 1944. The Corporation has reduced personnel and administrative ex penses. During the 1943 fiscal year, personnel was reduced from 5,228 to 3,446. Administrative expenses during the 1943 fiscal year were $10,711,749, as compared with $15,498,908 during the previous 26 REPORT OF FEDERAL HOME LOAN-BANK ADMINISTRATION year, a decline of 30.9 percent. Twenty field stations and the last remaining State office were closed during the reporting period. The Corporation on June 30, 1943, had 8 regional offices and 19 field stations. These stations are established strategically at points of loan, concentration where their presence permits economies in travel time and expense which more than offset the small cost of operating the field stations. Collection facilities are maintained in only 7 of the field stations. STATUS OF ACCOUNTS During its 3 years of lending operations, the Home Owners' Loan Corporation made 1,017,821 mortgage loans. Because of divisions of property, partial sales of properties owned, and other reasons, the number of accounts was increased to a total of 1,019,725 as of June 30, 1943. On that date, these accounts were divided as follows: Accounts terminated ------------------------------------------Original mortgage loans ----------------------------------Vendee accounts --------------Properties owned ---------------Properties in process of acquisition Total------------------------------------------------- 256, 091 597, 455 139, 238 24,935 1, 106 1,019,725 From a study of this table, it is obvious that these accounts fall into three major groups-those which have been terminated, those which represent outstanding debtor accounts, and those which represent property owned. These will be discussed separately in the three following sections: Accounts terminated.-Of the 1,019'725 accounts, 256,091, or ap proximately one-fourth, have been terminated. Payment in full of mortgage loans caused 227,261 terminations, payment in full of vendee accounts totaled 17,975, cash sales of acquired properties accounted for 11,449 terminations, charge-offs accounted for 224, and 82 accounts were terminated through consolidations. Mortgage and vendee accounts.-On June 30, 1943, the Corporation had 736,693 mortgage and vendee accounts. Of these, 228,266 had been extended in accordance with the Mead-Barry Act of 1939, which provided for extensions of amortization periods, in justifiable cases, up to 25 years from the date of execution of the mortgage held by the Corporation. The Home Owners' Loan Corporation, from the beginning of its operations, adopted the practice of servicing its loans individually, thus permitting the Corporation to discover causes of trouble and to take action to avoid foreclosure. This service is now especially im portant because, in view of the loss of thousands of the Corporation's best mortgages, by payment in full or refinancing, it is important to maintain or improve the quality of the remaining mortgages if eventual losses are to be kept low. As part of this servicing program the Corporation holds funds to pay taxes and insurance, collected from borrowers on a systematic monthly installment basis. This procedure assists borrowers to avoid tax difficulties and has also resulted in economies in the Corporation's administrative expenses by eliminating the necessity for searching tax records to determine whether delinquencies exist. During the 1943 fiscal year the proportion of such accounts was increased from 53.3 to 56.2 percent of outstanding loan accounts. REPORT OF FEDERAL HOME LOAN BANIK ADMINISTRATION 27 Properties acquired, including those subject to redemption.-From the time it commenced operations until June 30, 1943, the Home Owners' Loan Corporation acquired, as a result of foreclosures, aban donments, etc., 195,643 properties. In addition, on June 30, 1943, 1,107 properties were acquired but were still subject to redemption. Of the total acquisitions, 193,025 were of properties covered by original mortgage loans. Of the 1,017,821 original mortgagors, all of. whonm faced loss of their properties under the conditions prevailing from 1933 to 1936, 824,795, or 81 percent, were saved from foreclosure through the operations of the Home Owners' Loan Corporation. Net property acquisitions during the fiscal year 1943 were 2,118, compared with 5,408 during the fiscal year 1942. The rapid decline during recent years in the property acquisitions of the Home Owners' Loan Corporation is evidence of the stronger financial position of the majority of the Corporation's borrowers. Property accounts.-Efforts of the Home Owners' Loan Corporation to dispose of foreclosed properties met with further success during the fiscal year 1943 despite the fact that most of the remaining properties were located in sections receiving relatively little benefit from war conditions. On June 30, 1943, the Corporation owned or was acquiring title to 26,041 properties. This compared with 37,998 on June 30, 1942, and 49,419 on June 30, 1941. The Corporation was therefore reducing its properties by approximately 1,000 a month. From the commencement of operations until June 30, 1943, the Corporation acquired and had available for sale a total of 195,643 properties, of which 87.2 percent had been sold. This does not include 1,107 properties acquired, but still subject to redemption. If these properties are included, the Corporation had sold 86.7 percent of all properties acquired. On June 30, 1943, the combined capital value of properties which the Corporation owned or of which the Corporation was in process of acquiring title was $191,298,828, as compared with $262,307,276 on June 30, 1942, and $318,734,001 on, June 30, 1941. Sale of Corporation-owned properties through June 30, 1943, had resulted in a total cumulative loss, including brokers' commissions and selling costs, of $254,041,277, Other losses, which included principal and interest losses on mortgage loans and vendee accounts, properties charged off, fire and other hazards, and fidelity and casualty losses, amounted to $1,039,356. This increased total losses from all sources, cumulative through June 30, 1943, to $255,080,636. During the same period, cumulative net income before provision for losses totaled $189,838,206. After deducting this, the Corpora tion's losses in excess of its earnings as of June 30, 1943, were $65,242,430. The loss figure given above on properties sold includes brokers' commissions, selling costs, and the difference between the actual sales prices and the capitalized value shown on the Corpora tion's books. Capitalized value includes the unpaid principal value of the foreclosed loan, delinquent interest and taxes, foreclosure acquisitions, and reconditioning expenses. In other words, a large part of the book losses reflects the cost of leniency to borrowers who eventually had to be foreclosed. The Home Owners' Loan Corporation endeavors to sell its acquired properties as promptly as possible. Pending sale, most of these 64952-44---5 28 REPORT OF FEDERAL -HOME LOAN BANK ADMINISTRATION properties are rented. On June 30, 1943, properties owned by the Corporation contained 36,846 rental units. Of these, 3,408 units were not available for rental because these were in process of repair, held vacant for sale, or adversely occupied. The remaining 33,438 units were available for rental, and of these 31,110, or 93 percent, were rented. During the 1943 fiscal year the Corporation's gross operating income from the rental of properties was $16,768,486. Gross expenses for rented and unrented properties, not including interest and adminis tive expenses, was $11,550,908. During the year, therefore, the Corporation's net operating income from property was $5,217,578. On a cumulative basis from the beginning of operations until June 30, 1943, net operating income from properties owned by the Cor poration was $24,574,178. Reconditioning.-Reconditioning activities of the Corporation are undertaken to restore its properties and properties on which it has mortgages to a condition of normal habitability. Because of the decrease in property acquisitions and in its real-estate* accounts, the Corporation has been able to reduce its reconditioning operations. This is shown by the following table, which indicates the number and total cost of reconditioning operations completed during each of the last 3 fiscal years. Fiscal year 1941. 1942 . 1943 . ... Numberof cases -----.....---.... ......... ...... ... ..... ..------------------------------------------------------------.......------------------------------------------------------------- 35,982 21,687 10,836 Total cost $11,653,483 9,174,051 4,369,428 Appraisals.-Pronouncedchanges in property valuations uinder war conditions require the Corporation to continue making appraisals of its properties and to review appraisals previously made. However, the decrease in the real-estate account and in acquisitions has permitted a reduction in the number of appraisals. Appraisals and reviews completed during the 1943 fiscal year total 28,513, compared with 37,125 in 1942 and 60,264 in 1941. Appraisals and reviews completed between the beginning of liquidation on June 12, 1936, and June 3.0, 1943, totaled 504,110. FINANCIAL STATEMENTS The balance sheet of the Home Owners' Loan Corporation for June 30, 1943, is given in exhibit 25 of this report. Progress of liquidation is reflected by the fact that total assets have decreased 15.6 percent during the 1943 fiscal year. The largest declines occurred in the mortgage loan, property, and investment accounts. On the liability side of the balance sheet there was a decline in bonded indebtedness. Statements of income and expense for the fiscal year 1943 are shown in exhibit 26, and for the period from the beginning of operations through June 30, 1943, are shown in exhibit 27. . For the fiscal year 1943 operating and other income total $92,861,703. Total expenses, including interest on bonded indebtedness, amounted to $60,762,889, leaving a net income before provision for losses of $32,098,813. After allowance for the reserves necessary to meet estimated future losses, REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 29 the Corporation's deficit for the fiscal year 1943 amounted to $8,127,841. In comparison, operating and other income for the fiscal year 1942 amounted to-$106,359,213. Total expenses, including interest on bonded indebtedness, for the fiscal year 1942 amounted to $83,875,427, leaving a net income for 1942, before provision for losses, of $22,483,786. The Corporation's deficit for the fiscal year 1942 after allowance for the reserves necessary to meet estimated future losses amounted to $17,850,866, as compared with the 1943 deficit of $8,127,841. WAR-HOUSING ACTIVITIES Because of its extensive experience in reconditioning properties, the Home Owners' Loan Corporation was directed by the National Hous ing Agency to operate the publicly financed part of the conversion program of the Homes Use Service. The Corporation acted simply to supervise the program and all of the Corporation's expenses were reimbursed to it. After the close of the 1944 fiscal year the operation of the program was transferred to the Federal Public Housing Authority. This conversion program was announced in October 1942 and con version activities were started shortly thereafter. The results achieved under this program are summarized in the following para graphs: Programming.-ThroughJune 30, 1943, 54,873 units had been pro grammed for publicly financed conversion by the National Housing Agency. .These units were scattered over 201 areas in 42 States. Applications for conversion.-A total of 30,485 applications for conversion were received by the Home Owners' Loan Corporation during the fiscal year 1943.. From these, 3,726 leases have been executed for properties that will make available 16,600 units. Appli cations pending disposition in the various stages total 6,779, and the remaining 19,980 cases have been rejected or withdrawn. Pos session has been secured in 2,996 of the properties leased, and 730 are awaiting possession. Production.-Therewere 2,117 conversion contracts awarded during the fiscal year 1943, covering the construction of 8,949 housing units. Of these, 7,828 have been completed. Cost.-The average cost per unit, estimated at the time of appli cation, is approximately $1,520. A recent comparison with actual costs indicates that this is a fairly accurate figure. Some increase in cost is expected in the future because of the addition of repairs and equipment not contemplated in the original estimates. VII. UNITED STATES HOUSING CORPORATION Under Executive Order No. 9070 of February 24, 1942, functions relating to the United States Housing Corporation are now being administered in the Federal Home Loan Bank Administration. The United States Housing Corporation, which is in liquidation, was created in 1918 during World War I for the purpose of providing housing for workers in congested war-production centers. Congress was requested to authorize the Federal Home Loan Bank Adminis tration to use $173,000 of the special deposit account held with the Treasurer of the United States in the name of the Corporation to wind up the affairs of the Corporation. This request was granted on July 2, 1942. With few exceptions, all of the Corporation's properties are involved in litigation which has delayed the completion of its liquidation. In the meantime, appropriate steps have been taken to protect the Corporation's investment in these properties. The Corporation's income and expense statement for the period March 1, 1942, to June 30, 1943, is as follows: $187, 771 Income from rents, stipulation payments, and miscellaneous items ---Operating expenses --------------------------------------25, 756 ---4, 792 ------------------------------Losses from liquidation __ Net income for period- --------------------------------- 157, 223 The Corporation had for disposal on February 28, 1942, a total of 518 parcels of real estate, including 60 vacant lots. Of these parcels, 18, including 2 vacant lots, were disposed of during the period March 1, 1942, to June 30, 1943, leaving a total of 500 properties on hand on June 30, 1943, for liquidation. 30 LIST OF EXHIBITS THE YEAR IN RETROSPECT Page 1. Estimated number of new nonfarm dwelling units, by source of funds and type of structure, July 1940 to June 1943-_ 2. Indices of total building cost, and of cost of materials and labor used in construction of standard six-room frame house, fiscal years 1942 and 1943 ------------ -_--3. Nonfarm real-estate foreclosures, by Federal Home Loan Bank Districts and by States, fiscal years 1942 and 1943_ 4. Selected figures on residential real estate owned by financial institutions, December 31, 1941, and December 31, 1942 5. Estimated volume of mortgage loans originated on non farm one- to four-family dwellings, by type of lender, 1930-42 ---------------------------------------6. Estimated recordings of nonfarm mortgages of $20,000 or less, by type of mortgagee, fiscal year 1943-----------7. Estimated balance of outstanding mortgage loans on non farm one- to four-family dwellings, 1930-42 ----------8. Changes in selected types of individual long-term savings, December 31, 1935, to December 31, 1942---------SAVINGS 33 33 34 35 35 36 38 38 AND LOAN ASSOCIATIONS 9. New loans made by member associations, by purpose, fiscal years 1941, 1942, and 1943--------------------10. Combined statement of condition for all reporting savings and loan members of the Federal Home Loan Bank System, by type of association, as of December 31, 1941, and December 31, 1942----------------------------11. Consolidated, statement of operations for 3,722 reporting member savings and loan associations of the Federal \ Home Loan Bank System, by type, for the year ended December 1942- --------------------------------- 39 39 41 FEDERAL HOME LOAN BANK ADMINISTRATION 12. Members of the Federal Savings and Loan Advisory Council as of June 30, 1943 13. Statement of receipts and disbursements of the Adminis tration during the fiscal years 1942 and 1943 ---------14. Comparative statement reflecting, by offices, the number of Administration employees as of the close of the fiscal years 1942 and 1943--------------- ---------------- 31 44 44 45 32 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION FEDERAL HOME LOAN BANK SYSTEM Page 15. Number and estimated assets of member institutions, June -30, 1942, and June 30, 1943 ------------------------16. Advances and repayments for the periods indicated, and the balance of advances outstanding at the close of such periods ----------------------------------------17. Interest rates charged member institutions on advances, as of July 1, 1943-------------------------- --------18. Federal Home Loan Banks-Statement of, condition as of June 30, 1943 ------------------------------------19. Federal Home Loan Banks-Analysis of surplus and un divided profits for the fiscal year ended June 30, 1943--20. Federal Home Loan Banks-Statement of profit, and loss for the fiscal year ended June 30, 1943---------------54 FEDERAL SAVINGS AND LOAN INSURANCE 45 46 47 48 52 CORPORATION 21. Number and assets of all insured associations, by Federal Home Loan Bank Districts and by States, June 30,1943 _ 22. Statement of condition as of June 30, 1943 -------------23. Income and expense statement for the period July 1, 1942, 58 60 through June 30, 1943---------------------------- 61 24. Statements of condition and operation for insured institu tions in receivership, June 30, 1943------------------ 62 HOME OWNERS' LOAN CORPORATION 25. Balance sheet as of June 30, 1943---------------------26. Statement of income and expense for the fiscal year 1943 27. Statement of incomeand expense from the beginning of operations, June 13, 1933, to June 30, 1943---------- 65 66 67 EXHIBITS EXHIBIT 1.-Estimated number of new nonfarm dwelling units, by source of funds and type of structure, July 1940 to June 1943 Private Period Total non- Fiscal year 1941, total- -- ----- Third quarter, 1940------ -- ---------------Fourth quarter, 1940-..--------First quarter, 1941------------------Second quarter, 1941----------------- 2-family 1 28, 424 60, 317 ' 106, 672 7, 451 6, 166 6,195 8, 612 12, 607 14, 144 15, 966 17, 600 17, 738 34, 379 22, 297 32, 258 3 43, 714 3 154,139 502, 487 171, 600 58, 100 145,100 223,100 133, 103, 100, 164, 3 430,409 3 23, 838 400 600 500 600 161, 586 106, 327 3 94, 804 3 67, 692 8, 013 5, 573 3 5, 288 4, 964 -------- 3391, 700 3 155, 525 Third quarter, 1942-- ----------------... 94, 600 53,132 396, 900 Fourth quarter, 1942---------..........------First quarter, 1943------------------3 118, 200 82, 000 Second quarter, 1943- .-------..... ---------.... ... 336, 695 3 26, 969 3 38, 729 Fiscal year 1942, total---------- -------- Third quarter, 1941----------------- 211, 135, Fourth quarter, 1941---------.. ----------------3 138, First quarter, 1942--------.... 166, Second quarter, 1942- .---- ----------Fiscal year 1943, total----------...... famly 804 411 642 630 697, 900 3652,100 Public I 1-family / 13, 10, 10, 3 8, 474 842 933 465 28, 327 12, 858 3 27, 475 85, 479 3i14,905 3 24, 385 8196, 885 3, 235 37, 521 33,976 2, 689 5,005 34,488 4, 527 7, 849 330, 712 3 51, 741 3 84, 015 3 30,417 1 Includes 1- and 2-family dwellings with stores. multifamily dwellings with stores. *2Includes 3 Revised. Source: Division of Construction and Public Employment, Employment and Occupational Outlook Branch, Bureau of Labor Statistics, U. S. Department of Labor. EXHIBIT 2.-Indices of total building cost, and of cost of materials and labor used sn construction of standard 6-room frame house [Average month 1935-39= 100] Period Materials Labor Total Fiscal year 1942. 1941-July-----------......... 110.7 August--------112 6 September-..... 114. 4 October-----.. ---.. 116 0 November-...... 116 9 December- .... 117. 7 1942-January-........ 118 6 February----...... 119.3 March-----.......---120 0 April ..---------.. 120 5 May-----........... 121.0 June...........-----121.3 119 3 120 0 120 7 123 3 123. 9 124. 2 124. 5 125.0 126 0 125. 9 126.4 127.8 113.6 115 1 116 5 118 5 119 2 119 9 120-6 121 2 122 0 122 3 122 8 123 5 Period Fiscal year 1943: 1942-July-------.........----.. August-------..... September --..... October . -November...... December ....-----1943-January ...-----February---March--------April---------May--------... -June ....-----------..... Materials Labor 121 2 121 2 121 5 121.6 121. 5 121.4 121 5 121.9 122.0 121.,8 122 2 123.0 128 5 129 4 130. 2 130 2 130 2 130. 7 130 9 132 5 133.0 133. 4 134 3 134.3 Source: Division of Operating Statistics, FederalHome Loan Bank Administration. 33 Total 123.7 124.0 124. 4 124. 5 124 4 124. 5 124.7 125.5 125.7 125 7 126 2 126.8 34 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION EXHIBIT 3..-Nonfarm real-estateforeclosures, by Federal Home Loan Bank Distuicts and by States Bank District and State United States ...- Number, year ending June 30- Percent -_ change 1942 1943 49, 890 33,402 5, 748 3, 511 -38 9 Connecticut-------- 921 557 3, 698 196 287 89 556 463 2, 098 171 183 40 -39 -16. -43 -12 -36 -55.1 6 9 3 8 2 11, 151 8, 340 -25.2 2, 343 8,808 1, 592 6, 748 -32 1 -23.4 No. 2-New York----. New Jersey--------New York .------- No. 3-Pittsburgh...Delaware----------Pennsylvania- -West Virginia ----- -33.0 No. 7-Chicago-..--- . 8, 176 5, 724 -30.0 190 7, 449 537 86 5, 142 496 -54 7 -31.0 -7.6 5, 686 4, 017 -29.4 Illinois ....----Wisconsin --------No. 8-Des Moines--- Iowa ----.. Minnesota----Missouri -- _-North Dakota-South Dakota ---No. 9-Little RockArkansas------.. .-Louisiana- _-Mississippi ----New Mexico-------Texas ----No. 10-Topeka---.. No. 4-Winston-Salem--. Alabama----------District of Columbia Florida..-----Georgia- ___-_--Maryland-...----_North Carolina----South Carolina----Virginia ....--------- 545, 141 1, 159 646 1, 009 881 339 966 529 77 727 492 613 614 188 777 -2.9 -45.4 -37 -23 -39 -30.3 -44 -19. 3 8 2 5 6 4,762 2,920 -38. 7 Kentucky-....- ____ Ohio ----Tennessee....------- 712 2,662 1, 388 421 1,683 816 -40.9 -36 8 -41.2 No. 6-Indianapolis ....---- 1, 524 853 -44 667 857 426 427 -36.1 -50. 2 No. 5-Cincinnati----- Indiana..--- ------. Michigan------------..... Number, year endming June 30- Percent change 1942 No. 1-Boston ......... Maine-------------Massachusetts-----New Hampshire-Rhode Island---Vermont-----------.. Bank District and State 0 Colorado--..---Kansas -----..... Nebraska------Oklahoma-----..-No. 11-P6rtland ..... Idaho --------------.... Montana ------Oregon.... . ...... Utah-------Washington _---Wyoming--------.. No. 12-Los Angeles.... Arizona-.--...---C alihfornia-------Nevada ------------ 3, 062 1, 897 -38.0 1, 934 1, 128 1, 242 655 -35. 8 -41.9 3,159 1, 948 -38.3 348 508 210 1,951 180 172 345 1, 161 90 142 -39.7 -32. 1 -40.5 -50 0 -17.4 1,851 1,165 -37.1 199 405 282 73 892 113 275 146 31 600 . -43 2 -32.1 -48.2 -57.5 -32.7 1, 855 1, 179 283 564 472 198 270 426 285 -30.0 -52. 1 -20.5 -39.6 639 340 -46.8 44 92 153 76 235 39 24 39 96 32 128 21 -45.5 -57.6 -37.3 -57.9 -45 5 -46 2 2, 277 1, 508 -33.8 90 2, 184 3 48 1, 456 4 -46.7 -33.3 +33.3 536 Source: Division of Operating Statistics, Federal Home Loan Bank Administration. 1943 -36.4 35 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION EXHIBIT 4.-Selected figures on residential real estate owned by financial institutions, Dec. 31, 1941, and Dec. 31, 1942 [Amounts in thousands of dollars] December 31--- Type of institution Savings and loan associations 1Mutual savings banks 4 ----Commercial banks 5--------- ------ ---. - 1941 1942 Amount 2 $327,620 8 $203,819 $123,801 37.8 300,000 127,000 200,000 85,000 100,000 42,000 33.3 33.1 1, 112,557 783,881 328,676 29.5 274, 608 221, 512 53,096 19.3 1, 387,165 1, 005,393 381, 772 27.5 -------2 Life-insurance companies 6--------Total, private----------- ------- - Home Owners' Loan Corporations 7--- 2 357, 937 --. ------------------- 2 --.......---- Grand total--------...................------------------------... Decrease during 1942 - --- 295,062 Percent 62,875 17.6 1 Estimate based on reports of operating associations' received by the Federal Home Loan Bank Administration. 2 Revised. 3 Preliminary. 4 Estimate based on Month's Work and reports of the Comptroller of the Currency and of the Federal Deposit Insurance Corporation. 6 Based on reports of the Comptroller of the Currency and of the Federal Deposit Insurance Corporation. Excludes trust departments, but includes an allowance for investments and other assets indirectly repre senting bank premises or other real estate. 8Estimate of the Federal Home Loan Bank Administration based on a questionnaire survey of the largest life-insurance companies. Excludes company-built housing projects. 7Capital value. EXHIBIT 5.-Estimated volume of mortgage loans originated on nonfarm 1- to family dwellings, by type of lender 4 [Millions of dollars] Type of lender 1930 1931 11932 1933 1934 1935, 1936 1937 1938 1939 1940 1941 1942 Savings and loan associa -- $1,262 $892 $543 $414 $451 $564 $755 $897 $798 $986 $1,200 $1,379 $1,051 tions--------------400 169 54 10 16 77 140 232 242 274 324 1371 374 Insurance companies ------.. 484 350 150 99 80 80 100 120 105 112 133 171 130 Mutual savings banks -- . Commercial banks and their 689 798 606 trust departments----670 364 170 110 110 264 430 500 560 610 Home Owners' Loan Cor poration ----.----.---... 132 2, 263 583 128 27 - 81 151 1 143 63 40 Individuals and others i2 720 400 175 100 150 443 605 723 669 740 781 1 986 881 Total---........-----.-----...... 3,536 2,175 1,092 865 3, 070 2, 011 2, 158 2, 499 2, 455 2,873 13,270 13, 768 3,082 I Revised. 2 Includes fiduciaries, mortgage, title, and real estate companies, construction companies, philanthropic and educational institutions, fraternal organizations, State and local governments, etc. Source: Division of Operating Statistics, Federal Home Loan Bank Administration. 36- REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 4 0 0 0 r- 4- 0 '0 c-4 0'- 0000t cc 'Moo 1 ~ t4cz0 C000000 11T400000 0I 0--'C2 X00400440 00 X004040( 0-00 C9old tl I f0 0MC 400-00000 V;q- 00 fX~000 22 0 ~0 S 00 00C- c0 00444 z 9~ ce __--__ __ -11 11 cq (m Il to t -tq' W- mot0-?-qC 40 0 o' 00000-00- Ii0 0000040440 00C)00 1_ t00q o 00- 00 0 40000 c 0't2, 476 t 04 0' 0004044 _1_1_111 ~ _ 000000C1 o c-d D00 m-000040 ,I00 t - t m'- 0 4 00b000040 0000000000000,0 1 _ q 00 e "-'I00000i :o000 0N-00 0-0 04 It 0 000000t"ti 0C) 000 - 00 00M0 z4 1000 0 00ff rd 00 0 4+ ~z -~ 2 f 0 00 to 0 CO 00000000N-00 c q 000 0400000 "14cMt - 00 00 N m00 00 00 z) 5_ 5 C _ 00 000 00000 __ 00 00 C0 _ 0000C) _____ : 0 00 .:q-U0440 -i ' 0 400 00 ;5 _ __ 0 40 0 00.40 4 :0 00 00000 -0000c 00 00 40 4tq00 o000 0 0 ' 0000000400-00 li 00,a 004 ____K 0 4(0000000000 0 00 00000 00c 00 m 00C4 )00 000000004000 00 -i --00-00- 0ot004 I __ 0I000000co0 C_0-0M40 400000 - 00to 4 t'00N )N 40' C C)In O 00W= qC 44a4C444U)40 0000 _ -)( o 00m0CO 0X0 001 000000-0000 10010N400 4 00 . 0.0..440.000. 4 0 000,040 00-00 ___ C 00 000X c0-o000-0000 _00 0004 M 442 00 00 001 o__N_ t-__ 06 00 +Z 00 0'X - 00m 0000 t 0000 1 C C- O-(0-)IOZo00 000 m0 00_4 C 000000)100 0000t0, t000000000000 0 0 q0 c ___ 000010 00-00000-0-00) 0 004 dq0 4 -, 00 00 00 __ -4000 00 -I00004 00 - 00000-' zNmd C OU.00o- C00-000 zf -00w1 .:0000 00 ___cc 0 0000r4IP cC,= 00d 000) 00o 00000 r-i 0f000 00 00000 U C 400Mt - q - O 10410z0000 000X10 00c00-0to0t-000-001to 4- "i 00D T4 0'm -0 00 0000 = q 000000011010 4Q. I-4Z et cqC 00- c r-; Z 0 MI 00 ZI 0'0-d00 M , ) 00Q M000 -z-_-_-- 0- -_-_--_- m004000004011000000000L40000m0= -0 IN0C.040M0LO0co10 E4 I 000 0000_-4 Of00 22 000 t .14C>I r 0000 +.D o :v:) :: I C) : rd .,..4-sce 222 IrI n2 41 Qo ro ocq 20 _f 0000 0 000UDx >I-C ommxw - -- o 0-0000 O 10000t400 r_4O r_000 10C) 71 i i 04000-04 0 000 00 00 m 00 00 N4t0c0000000000000000 000000C) = =0 11400 m c o m$ O~ O: t m "4It5- q c riI 00-00 C4 4 4 4 40t4 t XO i 4 4 2m ~ ~ ~~ Tm 'Tl t00 .I 4 4 44o4 (:o.1 ~ -NC0 (4 4 NC)t 44C cq:-N::--:v00 222 N 0 '2 4r_ 44 . 22cdo k 00 4ot-0 4000) 5oio: Nm oC)lz 0U,:) C)?--i w -Tiqoz, t-oo 00 4 00w 000400 000 I 0 Z0 t t zzfI 0 _4C>c 3,7 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION Cl-Clml Clml<= Cl Cl Cl Cl 0Cl) 1Cl 0Cl Cl Cl) Cl Xcc) Cl4 1C)0 000 Cl) cl 00 -ClCl1Cl Clo ce40544cf: Cl Cl ccC) lCl Cl C 00 Cl0000ll Cl=rcl C CIOC 0 Cl1 I Cl C-ClCl0C -CID l Cl 0010Cl Cl Clti q Cl00 lll -l C C Cl)CCll00 C- 00 l~0C-l -zilOt IO ]COClf C -ldq t-L 00oz, 0C)w1.1 -0Cllql Clql mlICl C )oC ) LOl a) mlC~l C -11 ClCC Cl 00 Cl 4Cl l U2 00 r44444 cy:) t-:, C9wm47 CI C-CdCqC Cl Icl w0 L 00 0 C 0-00 M I-X0clc r--4 X-Cl X0N N m cll00C M C I-co Lo C-Cl - 10 koC r-4 C)NaM tCl oo - - OC)lN lN-4()0Ct - Cl x0 C t-CNll00 tNlOl Cl tC--I .0O C3 U0 .-0 0000 l .:q -oN ClC)-l00 00 0Cl ClC o X tl- C Cl r-4 4 m N 0Q0 0 Ol N cy*Cl -Clx l00x - I cdq 000Itqm00 0 0 N mlt-0 CNl .d4COlr-4 C) I ti ClmClC) -lG .4 C Cl )w l0Cl-VCl - 0 C llr-l -4r r-4 C)lC4 lC cc0000 rlC~ (-Cll C C Cl CL mClql ClW-l1114 Cl C0lf00lC: C C 00N Cl cq 00ClC 0 lllll e0 q, C mo-m--4r' lo 0 InI'N D=q 0llll j -, eC 0 C C1, C C11O M C ~C X0 Cl tCA Clz) C6 Cl - I C)Cl T~cq l C~~~~ l CC l ll l C rll0 -il cc)0000 C)00Cl CILOct-o :)-4 "ti ClC(c l 4 $ 4 -, o MQ,& Cl4C -1 N C Cl Cl D coCl Cl C C' C ~lClC C~ -rq lr-i --,1ccI O 10l CC ClCO -Cqll' 00 C t- -4 C-clcl-- Cl -0 ZiC)l "l Clll= IZ0-=CqC 0lcq l00clcl H 00 l o 0 Cl 10 Cl 00cl 0VDCt 0 qcl (D 0 C)l tCl 14 0 C C lC -V 0Cl Inl00lrilX0 (>C ) mlto 06,clCll Cl4 ClClcr0Cler Cl X0 Cl CliC) NCLO0:) N l C)t- Cl00.7mC- Cl -qCC00 lC000 c oclcl O(or-q1 l cmc. l -Clolm00 C4C-100rl CC C)l C00CZ c~c-60 ,-x64,6 0 Cl00 t:c l C C bb b0 rd ra Idq l C Cl tq C 'l ' ' ' ' Cl Cl ' ' 'l 'C'C (M'' .-4 ClClil c ClC14 Cl0 Cl l Cl oo Cl tCl IN0 col 00 Cl Cl Cl00 'o 'cl C-Cl Cl Cl -cl CC Cl CD -Cl l -CLO 1:14 0 ll ll C00 Cl l Clq q l Cll'Z4 lq r-4C-Cll l Cl -q10N Cl4lt Clto Cl-l el -l44 C Ol o Cl00 Cl Cl rl, 0Cll Cl corl4Cl C ll Clm 0MCl 00 Cl Cl00Cl-: l -4Cl0Cq XCl0l lCm 00C%00C4lV4 mr Cl C:) -ClmlQll l lolml l L C 004C' lC-Cl 0 0 lll Cl Cl r-40 Cl l l Cl Cl CY l 4 .1 o CleCl4C C00CmlCl0lC Cl I c cl CD 00Cltoll ClCxo.4 -ClmlC) - l ) Cl Cle~l00 l Cl clclU clcl00 C C C00 Cl q cl ClMl MC l X0lC-Clt00l 0Cl N0lCNtlC00 ClCCl toC-C)0l 7-l l-Cl Cl= C eDll CoCl 00CLO Cl6 Cl Cl lCl C Cl -ooClml Cl= t-Cl0l Cl i "lC l Cl4 oe C CDl000C 00Cl7l Cl4 Cl C rlq 4a 4 -Cl0l0lM : ClDtll ClCl00Ct- d o lC4c -Cl r ClrCl o Cl(o l-,ZlN t4U-)_i C-l UCl00CXl l Cl Cl C) Cl 00ClCl4 t- CX C4 ClI l NCl 4C 4 m00 C C l l t Cl0 =ll000Cl coC4l ICl 00ClX0C-0G co0 C00 t-Cr-l l 04 C k Ct.Cl 0 00 00 ClolC l C0-i Cl C-Cl l l 0lll Il Cr- Cl _CCl l toCl oo C 00Cl d -qC4Cl m C00C )lCC tClql( l lClCl lol0l00 (= oo m Cl 4ICl)INl l A14 Cl 4ta4 a,' co 4 Cl NCl (00 Cl Cl -l Cl00CllCl( Cl M l0l.Cl mCql tm0000 c cl l lm CC~ q Cc l N Cl oCl kDCl00C1l404Cm Cqd -Cl= C- w Cl lld m l 0w oo Cl.)l ClCD -Cl C C "4l '4lClC lCl- Cl aw Cl w C Cl-lrl00Cl l mll 0 00-C An0 Cl cl j,. 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'00 0 P0L0 IO0 m Cl Cl Cl6 C a( P z c z 02 .) 38 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION EXHIBIT 7.-Estimated balance of outstanding mortgage loans on nonfarm 1- to 4-family dwellings 1 [Millions of dollars] Type of mortgagee 1930 Savings and loan associations-------------$6, 402 Insurance companies----------. ---------1, 732 Mutual savings banks------------------3, 300 Colmimercial banks ----------2,425 Home Owners' Loan Corporation ------------.... __,_ Individuals and others------- ------------ 7,400 Total---------------------- ----- 21, 259 Type of mortgagee 1931 1932 $5, 890 $5, 148 $4, 437 1, 775 1, 724 1, 599 3, 375 3, 375 3, 200 2, 145 1,995 1,810 -_____,_-----132 --------------------------- 1934 1935 $3, 710 -1, 379 3, 000 1,189 2, 379 $3, 293 1,281 2, 850 1,189 2,897 1936 $3, 237 1, 245 2, 750 1, 230 2, 763 7, 500 7,000 6,700 6, 200 6,000 6,000 20,685 19,242 17,878 17,857 17,510 17,225 1937 1938 1939 1940 1941 $3, 555 1, 320 2, 670 1, 600 2,169 6, 332 $3,758 1, 490 2, 680 1, 810 2, 038 6, 440 $4,084 2$4, 552 1, 758 2 1, 976 2, 700 2, 730' 2, 095 2,470 1, 956 1, 777 6, 510 6, 590 $4, 565 2, 255 2, 700 2, 480 1, 567 6, 350 17, 646 18, 216 19,103 220, 095 19, 917 Savings and loan associations -------------------$3,420 Insurance companies--------------------- ------ 1, 246 Mutual savings banks-----------------------2, 700 Commercial b'anks----------------------------1, 400 Home Owners' Loan Corporation-----------------2, 398 Individuals and others ------------------------6,180 Total.-- 1933 17, 344 1942 1For detailed explanation of preparation of these estimates, see footnotes to exhibit 10 of Ninth Annual Report of Federal Home Loan Bank Board. Revised. Source: Division of Operating Statistics, Federal Home Loan Bank Administration. EXHIBIT 8.-Changes in selected types of indivzdual long-term savzngs Dec. 31, 1935, to Dec. 31, 1942 [In millions of dollars] Percent 1935 Total-----------Life insurance companies 1 Mutual savings banks 2.. Insured commercial banks 3 Savings and loan associa tions 4 --------Postal savings 6 -------2V percent postal savings --bonds? United States savings bonds 8------ 1936 1937 1938 1939 1940 1941 1942 $43, 536 $46,428 $49, 109 $51,144 $54,190 $57,633 $61, 540 $70,461 change, 1941-42' +14.5 17, 542 9,829 10, 575 19,133 10,013 11,491 20, 510 10,126 12,100 21, 858 10, 235 12,196 23, 381 10,481 12, 622 25, 025 10, 618 13,062 26, 877 10,490 13,261 29, 043 10, 621 13,820 +8.1 +1.2 +4.2 4,104 1, 229 3, 926 1, 291 4,011 1, 303 4,035 1, 286 4, 092 1, 315 4, 304 1, 342 4, 685 1, 392 5 4, 950 1, 417 +5.7 +1.8 104 99 95 92 90 87 85 84 -1.2 153 475 964 1, 442 2, 209 3,195 4, 750 10, 526 +121.6 1Estimated accumulated savings in, United States life insurance companies. Represents reserves plus unpaid dividends and surplus to policyholders, except that deduction is made of policy notes and loans and net deferred and unpaid premiums. Source: The Spectator. 2 Deposits. Source: The Month's Work, published by the National Association of Mutual Savings Banks. 3 Deposits evidenced by savings passbooks for insured commercial banks. Source: Federal Deposit Insurance Corporation. 4 Estimated private investments in savings and loan associations, including deposits and investment securities. Series revised to exclude shares pledged against mortgage loans. Source: Federal Home Loan Bank Administration. 5 Preliminary. 6 Due depositors; outstanding principal and accrued interest on certificates of deposits, outstanding savings, stamps, and unclaimed deposits. Source. Post Office Department. 7 Excludes such bonds held by the Postal Savings System. Source: Treasury Daily Statement /and Post Office Department. 8 Current redemption value; from May 1, 1941; includes War Savings bonds, series E. REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 39 EXHIBIT 9.-New loans made by member associations,by purpose [Thousands of dollars] Fiscal year 1941 ------- ----- Fiscal year 1942 Home purchase Refinancing Reconditioning Other $1, 084, 866 $389, 559 $388, 376 $168, 201 $49, 396 $89, 334 283, 670 248, 014 228, 565 324, 617 106, 948 43, 800 91, 198 79, 091 112, 322 95,381 84, 653 80, 723' 127, 619 39. 132 39, 110 46, 159 14, 153 11,627 9, 515 14, 101 23, 388 21, 404 20,126 24,416 1, 063, 445 311, 039 477, 193 152, 561 43, 503 79, 149 333, 463 281, 379 206, 667 241, 936 116,481 87, 222 58, 924 48, 412 138, 334 123, 426 88, 454 126, 979 42, 088 38,614 33,675 38, 184 14, 184 11,613 8, 125 9, 581 22, 376 20, 504 17, 489 18, 780 895,534 112, 308 545, 580 148, 017 29,070 60, 559 239, 077 201, 228 181, 486 273, 743 39, 233 135, 807 118, 594 108, 828 182, 351 38, 631 35, 048 33, 755 40, 583 9,695 7, 282 5,315 6, 778 15,711 14, 293 13, 882 16, 673 September 1940-------------December 1940 ----------------March 1941 ----------June 1941 September 1941-------------December 1941--------------------------March 1942 June 1942 -------------------Fiscal year 1943 Construc tion Total Period -------- September 1942-------------December 1942-------------March 1943-------------June 1943-------------------- 26, 011 19, 706 27>358 I I I I 10.-Combined statement of condition for all reporting savings and loan members of the Federal flome Loan Bank System, by type of association, as of Dec. $1, 1942, and Dec. 31, 1941 EXHIBIT [In thousands of dollars] All members Federals Insured State chartered' Uninsured State chartered Balance-sheet items 1941 1942 1941 1942 1941 1942 1941 1942 ASSETS First-mortgage- loans (in cldifing ihterest and ad $3,918,967 $3,989,514 $1,827,901 $1,859,892 $938,858 $1,031,495 $1,152,208$1,98,127 vances)------------------Junior-mortgage loans (in cluding interest and ad 512 2,985 2, 066 570 823 703 1,592 851 vances)-----------------Other loans (including share 4, 144 29, 577 17, 132 8, 396 5, 463 4, 839 15, 718 8,149 loans) _-----.-------57, 792 173, 598 162,348 62,118 58, 895 58, 239 52, 585 46, 317 Real estate sold on contract189, 429 124, 752 36, 910 53,119 36, 737 51,819 84, 491 51,105 Real estate owned---------Federal Home Loan Bank stock --------------------- U. S. Government obliga tions--------------------Other investments (includ ing accrued interest) -----Cash on hand and in banks Office building (net) -------Furjiiu,re, fixtures, and equipment (net)---------Other assets -------Total assets ------ 47, 553 49, 943 23,070 24, 523 11,659 ,12,926 12,824 12,494 75, 244 259, 678 24, 944 119,124 20,424 75,161 29, 876 65, 393 21, 039 278, 696 47, 229 23,112 336, 281 47, 272 3, 114 136, 935 20, 342 4, 054 162, 933 20, 830 7, 285 69, 766 10, 588 93,140 13, 649 10, 640 71,995 13, 514 8, 470 80, 208 12,793 5, 293 8, 148 6,077 2, 988 2,128 3, 422 2, 305 1, 421 2,171 1, 757 1,713 3,849 884 898 3, 258 7, 276 13, 373 4, 797, 758 5,025,451 2,164, 325 2, 296, 441 1, 183, 257 1, 340, 947 1, 450,176 1,388,063 LIABILITIES AND CAPITAL U. S Government invest ment (shares and depos 195, 692 167, 902 159, 266 136, 136 36, 208 31, 605 218 161 its)------------------Private repurchasable shares 3, 416, 075 3, 746, 191 1, 668, 292 1, 884,808 724,945 860,497 1, 022, 838 1,000, 886 130, 777 125, --shares 682 7, 596 5, pledged 705 17, 197 20, 105,984 99, 451 526 Mortgage Deposits and investment 331,926 222 279 201,301 350,955 231,772 130,403 118,904 certificates from Federal Advances 217, 881 131,152 143,588 83, 776 49,273 32, 043 25,020 15,333 Home Loan Banks-----21, 345 11, 530 6, 442 4, 458 5, 545 3, 036 9, 358 4, 036 Other borrowed money- ---66, 786 29, 556 39, 338 15, 782 17, 859 9, 273 9, 589 4, 501 Loans in process----------Advance payments by bor 17,620 22, 4558,415 10, 7781 -----5,546 6,863 3,659 rowers .----4,814 20,8261 21,805 9,737 10, 387 7,269, 4,337 6, 7521 4, 149 Other liabilities - ---- - 40 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION EXHIBIT 10.-Combined statement of condition for all reporting savings and loan members of the Federal Home Loan Bank System, by type of association, as of Dec. 31, 1942, and Dec. 31, 1941-Continued [In thousands of dollars] All members Federals Insured Statechartered Uninsured State chartered Balance-sheet items 1941 1942 1941 1942 1941 1942 1941 1942 LIABILITIES AND CAPITAL continued Capital,' permanent -reserve or guaranty stock---------$26, 519 Deferred credit to future op erations .---------16, 044 Specific reserves ...-----------8,050 General reserves ---------211, 337 Bonus on shares ------------623 Undivided profits and sur plus-----....-------- ------ 116,257 $25, 841--------....... ........-------. $21,967 $21,963 $4, 552 $3, 878 14,894 8,411 246, 836 676 $6,650 3, 793 69, 955 493 $6,020 4, 221 83, 787 532 4, 448 2,079 63, 016 125 4,641 2, 122 77, 033 136 4,946 2, 178 78, 366 5 4, 233 2,068 86, 016 8 121, 565 40, 538 49, 772 26,996 32,168 48, 723 39, 625 Total liabilities and capital ---------..... 4, 797, 758 5, 025, 451 2,164, 325 2,296, 441 1,183, 257 1, 340,947 1, 450,176 1, 388, 063 Reporting associations---...... Number Number Number Number Number Number Number Number 3, 771 3, 737 456 1,464 878 927 1,437 1, 346 41 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 000000000000000U-0000000000 0000000000000000000000 0000000r-m000000 C-m000000000000 0000000000000000w0000000 c64000 . 6 4 4-4 ~00 tC-r 00 %6000-4 00x cS4-4 c5 0 C00 i 0C', . .. O 0C) 00 r-0 i -4 00 (:6 CO00 N000di - W0M00to00f,000000 r40.0Cvi 0 t Qr- 0 04Ci m 00 q MCM 00 *0 00 00 f-0o-qd4to 0000000 C) Mt 00 MM CR4 w 4 'a wc> .:4 ww - N -44 . 0.0. 00000 .. 0.0.. . 00000 M0r-4 0C 00000004 o 00 00 0 000 n-0-00000m0mw0tod4000w0 z N -44N 00000.)W 0-0". -i :4N 00.0. 00. . .. 0.0.. . .C-. C toC r.4 0 C) C 0.4000 7-0c0 03 00 00 00 T-4 00000000ID.4 0 -C wd 00000 4O C-000 C-C- 0 00=-00(00000-00 o 1- 0000CDtr-cim==L V 00 L 00 CO 00~ oo oe 0000 0000Y00 00000000000 00 00 1VN atC-0C-0in 000000 0000 C co t~l q qdT-(0000 40m0N00od4-m 0 acir 6 C 00zX 00 N& 00 c6' o -^4 cc0 l r-00 & 0t - 0-00 00 ~ ~00 C-) 0000000)0 t-Cc0000000 C - 0000 000000000000 m 0 000 00 t0t0c r tI oP 00 .~0.0 000.. ~00 ~. CO 00.. 0000 .~ ~0 0. 00 00 00 00 00 00 00 00 00 00 I. 004 '-4 ca 00 0 0 I000 C00000000 c 42 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 0000 -q00 * 0) 0) 00 C)0000m Lo It C5 00 'Y 11 0 0) 00 0) 0) N000 cc 6 00 PO0D0 0 00 C7;00C0 q t0 I0-0000 00 0) 0 0 t c cq III 0) 0) '.0) 0) 0) 00 0 6s 0) C9 .q 0 1 1 0 0000 '000 0) 00 0 *5 0) > N140) 00100 t- 04000 oooco0 t ce 0)0 &4 an.0 010o I cq r-4 00 0 0 v-4 ) r4 -0)r-4 )N r-4 c C400 0)0 t - M ~ 0000 0 00~4 e 0 q r-0c co 01 CO0 000 )~ 000 0)10 000O0M0 m00 0000 t- q 0 La 0-m00t000 Mt lXC 0000 04 C00 r 00jC011 0 c O 0 q0-qr. r a0-i0 0 ) C 0)0 cl 0) 0) 0 to 00-) 00CIc m m t- 00000 0 -000 c -____-C) 1~0) 0)0) o0 0) 0) 0) 00V 0 0 0 CO qr -,"0i0000 C00 000c00000 (0 00000000I 00 000c0t 0) 0e t-s.00 CYD 00000 ,.d40 0 000 C 14,00 00 0)0) &0) ,c &- 0~ .'0) ~ ~-0) 000.) 0) ,0 0)c 0)0) 0)~) 0 .0'' 0) 0)) 0) 0: 0) 0)) 0)) 0) 0))) -co 00 '.0) 0) hp '.0) 0) ca 0))W) bk 00 Q) x0 0) Z30)0 0) 00 0 0)I, 0) ho I. 0) 0) (W ) P W, 0) £0 ; ;.44 moo00 0)- 0) 0 z 0) 0) 00 ~ ~000)0 ~.,-0) 0 0) 0.0 0)0)0) 0)~Q 0) 0) 0)Z 0) 00 0) 0) 0) 0 H 0 Cd~0 0000)0 REPORT OF FEDERAL HOMCE LOAN BANK ADMINISTRATION 00 1m to N 00 0V- Lo0l:I 00 w 1 00 'o It4Kl 14 6 x oI 00 00PI0 i Cc 2occm *0 1 t r r 22 J N_0-___ - 22)0 00 C0t0-4 2400C - X 140 'e00 2'-=0 00 C -W. N0o0c 2 == ~ M 0o0 I N - 141 000 000 0 000 0 0v1400.00 M o ,' ' - -= qMN0 0 00 f- __cz oc0021t -00 00' 0'- 0 _ oCY.) l 000 00K m00 r-q00 00 m 22 Ce6 00 mVr- t 0 1 t00 C 7--t c00-0 1- "I C 1ZC m.1 c0t0t CIAc 0qt 0200o0 to 20 00 4 0 2::: 4 C-) cc U) 0 a222 0 1~02 ;-4 b.0 2 Ce) ;-42~ 2 (D bDm 2c bp 12 1 14-4 qc 2 22 m2 e2Co P1)+ (a)to 2 0 14:Ce W 4 0 2 43 44 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION EXHIBIT 12.-Federal Home Loan Bank Administration-Members of the Federal Savings and Loan Advisory Council, as of June 30, 1943 Federal Home Loan Bank District Elected or a ointed Name ymond P. Harold--------.------------Elected. Boston---------R---------------------New York------------------------Francis V. D. Lloyd-----------------------Do. Do. Pittsburgh--------------------- James J. O'Malley--- -------------------- Appointed. Winston-Salem- ------------------- Horace S. Haworth- ..---------.. ---------------- Elected. Do--------------------------- J. F. Stevens-----------... Cincinnati-----------------------R. P. Dietzman------------------------- Appointed. Do--------------------------- W. Megrue Brock......------.....------------- -Elected. Indianapolis----------------- ------ Walter Gehrke .......---------------------------Do. Chicago------------------------------- C. W. Reuling----...-------------..------ Appointed. Do---------------- A. G. Erdmann------------------------Elected. Des Moines-----------------------E. A. Purdy--------.........-------------------Appointed. Do--------------------------- C.R Mitchell---------..........---------------Elected. Little Rock----------J. J. Miranne----------------------------Do. Do. -------------- George E. McKinnis----------.... ------------Topeka----------Portland-------------------------T. M. Donahoe---------....-----------------Do. Los Angeles-----------------------David G. Davis ------------------------ Appointed. ------ -------- Elected. Do-------........------------------- C. A. Carden------------..... EXHIBIT 13.-Federal Home Loan Bank Administration--Statementof receipts and disbursements of the Administration during the fiscal years 1942 and 1943 July 1, 1941, to July 1, 1942, to June 30, 1942 June 30, 1943 Balance at beginning of fiscal year -------------------------------- $239, 959.02 $353, 374.06 Receipts: Assessments upon Federal Home Loan Banks -----------------------------300,000 00 300,000.00 Home Owners' Loan Corporation__---------------- -----------18,438.92 0 Federal Savings-and Loan Insurance Corporation --------197, 209.17 103,678 01 Examining receipts .... .. ...---------------------------------------1, 072, 269. 54 918, 321.39 Miscellaneous refunds ---------------------------------------17, 627. 41 27, 991. 37 Reimbursement for conservators' expense-------------------------2,359. 78 3, 600 29 Sale of property-------............-------------------------------------163.10 0 Sale of material------------.......----------.... 9.01. 8.00 Refund from Treasury Department------- -----------------------712.69 0 ' 0 4,148 29 Refund from Federal Loan Agency --------------------------------Total receipts-------------------------------------------1, 608, 789. 60 1,357, 747.35 1, 848, 748 62 1, 711,121.41 --------Total cash and receipts .---...-----------..----------... Disbursements: 1,146, 029. 60 . .. ......------------------------------------------------Salaries 12,823 96 ------------------Supplies and materials--------------------- 95. 73 Newspapers and periodicals---------------------------- --------20,673.34 Communications-------------------------------------------225,551 10 --------------------------------------------------Travel --1,033 50 Transportation of things-----------------------------------16, 380.42 --------------Printing and binding-------------------------25,901.68 Photographing and duplicating--------------------------------28,894 67 Rents------------------------------------------------7,960. 56 Equipment, furniture, and fixtures------------------------------Transferred to administrative expenses: 6,600.00 Federal Loan Agency-------------------------------------0 ------------National Housing Agency-----...-----------------3, 430.00 Treasury Department-------------------------------------- 1,059, 584.99 5,697. 70 117 00 10,732.64 -66,758.35 328.87 7, 632.10 13, 598.10 26,820.48 2, 668.06 0 7,064.00 10, 000.00 Total disbursements----------------------------- ------ 1,495, 374. 56 1, 302, 002. 29 Balance at end of fiscal year ...----------------------------- 353, 374.06 409,119.12 45 REPORT OP FEDERAL HOME LOAN BANK ADMINISTRATION EXHIBIT 14.-Federal Home Loan Bank Administration-Comparativestatement reflecting, by offices, the number of Administration employees as of the close of the fiscal years 1942 and 1943 1942 Offices of the Board Members --..---Office of the Commissioner----------- 1942 1943 1 --... 3 Office of the Governor: 10 Governor's immediate office ... 35 Office of the Comptroller-------.. 29 Office of the Chief Supervisor- ... Review and Analysis Section ..-------------74 Total, Governor's office------..... 3 9 27 23 4 1943 8 Office of the Secretary.....--------------14 --4 .. Office of Public Relations----------8 5 Division of Operating Statistics .. 7 11 Legal Department........---------------9 ---Review Committee- ..-------------Examining Division: Washington office------------...8 Field-----------------------299 63 S---- 8 225 Total, Examining Division--... 307 233 Grand total--------....--------- 431 '319 EXHIBIT 15.-Federal Home Loan Bank System-Number and estimated assets of member institutions, June 30, 1942, and June 30, 1943 Assets of members Number of members [Inthousands of dollars] _______ _________139 1 Bank District and State 1942 United States...........--------............----.. 1943 1942 1943 3, 815 3,774 $5,643, 970 $6, 045, 016 No. 1-Boston......-------......-----...------------ 232 237 902,904 958, 698 Connecticut ------------Maine ------------Massachusetts---New Hampshire Rhode Island--------------------------------------Vermont------- 50 22 130 21 5 4 51 23 132 21 5 5 144,370 20,234 613, 538 77,522 41,641 5,599 162,611 25,077 636,588 81,165 47,129 6,128 No. 2-New York-------------------------------New Jersey---------------- ------- New York---------------------------------No. 3-Pittsburgh -------------Delaware------------------------------------Pennsylvania ---------------West Virginia- ..---...---.......-----------------No. 4--Winston-Salem. -------------... 375 370 493,060 617,595 '245 130 236 134 162,618 330,442 243,269 374, 326 488 477 297, 528 320, 199 7 /454 27 7 443 27 3,269 269, 902 24,357 3,440 292,163 24,596 415 414 738,819 801,848 Alabama -----------------------District of Columbia---..... Florida .------Georgia--Maryland --------------North Carolina-----------------------------------------South Carolina . Virginia---- 28 21 50 56 6" 114 44 39 28 21 50 56 63 113 44 39 23,142 161,881 95, 232 47,068 84, 664 227,280 41,876 57,676 24,961 172,467 103,964 53,606 96.822 240,850 48,611 60, 567 .... 579 564 946, 952 992,895 -----............ Kentucky ----OhioTennessee ...--------------------------------- 87 453 39 78 450 36 101, 232 804,110 41,610 88, 102 864,981 39,812 218 220 315,550 360,448 160 58 162 58 189, 063 126,487 216, 841 143,607 454 455 480,620 500,018 341 343 354,535 374, 669 113 112 126,085 125,349 No. 5-Cincinnati.....------------.... No. 6-Indianapolis--------..... ---------Indiana. Michigan ------------------ ------- No. 7-Chicago---------------------------------Illinois----Wisconsin---- -------------------- ----- 46 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION EXHIBIT 15.-Federal Home Loan Bank System-Number and estimated assets of member institutions, June 30, 1942, and June 30, 4943-Continued NumberAssets Number of members of members [In thousands of dollars] Bank district and State 246 1943 1942 1943 1942 $281, 627 244 $266,326 73 43 104 13 11 56,755 75,474 110,501 12,583 11,013 61,706 85,231 116,293 13,732 4,665 280 392,124 414,491 41 22,227 Arkansas-------------------------------------......... 41 67 101,260 Louisiana ---------------------------------67 27,313 26 26 Mississippi-----------------------------------.. 7,098 New Mexico.................-------------------14 14 132 234,226 Texas...................................--------------------------133 23,103 100,762 29,642 7,909 253,075 No. 8-Des Moines------------------------------................ Iowa ......................---------------------73 42 Minnesota-----------------------------------........................ Missouri.................--.----------------------- ..---106 ---..... -.. 13 North Dakota.......--------12 South Dakota ---------..... --------... .....----- No. 9-Little Rock........ No. 10-Topeka - -------------.. Colorado--------........................--------------..-------------Kansas .... .-----------.......-..... Nebraska----.......................--------------------------..Oklahoma--...---------------------------No. 11-Portland ------------... Idaho................---------------------------Montana -----------------....... Oregon....------------------.......----------...--.... ... Utah .. ............-----------------........ Washington. ----------------................. Wyoming ...........------------------------------------.. Alaska--------------------------------------No. 12-Los Angeles.......---.........------------------------.. Arizona ----......... .......----------------.. California -------------------... Nevada .......----.....--.--------............--------------Hawaii..........................-----------------.... 281 223 214 196,665 202,654 39 99 32 53 39 92 31 52 36,946 60,429 28,226 71,064 38,274 61,487 29,688 73,205 130 130 180,407 207,901 8 14 27 10 60 10 8 14 26 10 61 10 1 8,863 12,469 37,846 20,037 94,385 6,352 1 9,527 13,177 42,689 23,750 111,452 6,761 455 545 174 169 433,015 386,642 3 164 2 5 3 160 1 5 6,870 419,458 926 5, 761 8,131 370, 523 904 7,084 Source: Division of Operating Statistics, Federal Home Loan Bank Administration. EXHIBIT 16.-FederalHome Loan Banks-Advances and repayments for the periods indicated, and the balance of advances outstanding at the close of such periods Fiscal year: 1933- .---1934 -------1935...------......--------------.. Repayments Advances Period - $48, 894. 602 41 62,871,970 22 36,683,308.61 78,195,224.32 114,287,052 41 105,432,157 95 76,659,074 62 108,009,901 23 142,875, 563 45 155,025,046 83 1942-July August-----------------------------------September-------------------------------October..-------------------------------November------------------------------December ----....----------------.. 7,931,272 79 4,263,924. 36 4, 157, 05Q.91 5,689,951 00 4,011,358 52 18,209,462.95 ----------- 1936- ------------------------------1937 -----------------1938-------------------1939----------------------1940 -----------------1941-4-------1942--..--------------- ------- $1,230,77282 25, 387, 445 72 42, 599,148 52 38,840,900 50 65,817,003.85 76,-264,107 15 103,922,448.88 119,574,417 17 130,375,220 91 132,277, 500 65 Bsandi $47,663,829. 59 85,148, 354 09 79,232, 514.18 118,586,838 00. 167,056,886 56 196,224,937 36 168,961,563.10 157,397,047.16 169,897,389 70 192,644,935 88 1 26,982,912 17 17,656,010 27 19,606, 274.18 19,065,022.42 13,502,695 02 10,882,510.73 173, 160, 144, 131, 121, 129, 593, 296 f0 201, 210. 9 751,987. S2 376, 915. C0 885, 579. 40 212, 531.62 47 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION EXHIBIT 16.-FederalHome Loan Banks-Advances and repayments for the periods indicated, and the balance of advances outstanding at the close of such periods Continued Advances Period 1943-January ------------------February----------------March----. -----April -----------------May -------------------------June Total, fiscal year 1943 -- -96, Grand total through June 30, 1943 .------ $11, 807, 843 1, 239, 791 1, 531, 654 16, 727, 828 2,710,420 18, 065, 755 50 00 47 03 00 32 346, 312 85 1, 025, 280, 214 90 " Repayments Balance out standing $27,621,167 19, 015, 468 18, 548, 659 7, 965, 351 10,858,061 7, 095, 537 $113, 399, 207 95,6 23, 529 78, 606, 524 87, 369, 000. 79, 221, 359 90, 191, 576 79 96 56 86 07 94 198, 799, 671 97 33 37 28 45 38 76 ------ 935, 088, 638.14 -------- EXHIBIT 17.-FederalHome Loan Banks-Interest rates charged member institutions on advances, as of July 1, 1943 1 Federal Home Loan Bank Rate in effect I--- Types of advances I---------- ------- Percent Boston----------Boston .. New York- . Pittsburgh -------- Winston-Salem --Cincinnati --- ----- Indianapolis Chicago ------------ Des Moines..---Little Rock...--Topeka ... ----Portland--- ------- Los Angeles .---- -- 1Y Short-term advances amortized within 1 year, or secured by Government bonds 'On advances for 5 years, for defense-housing purposes, not exceeding 10 2 percent of member's assets, amortized at not less than 5 percent quarterly. 21/ All other advances. Short-term advances amortized within 1 year. 21/o Long-term advances S1> Short-term advances for purchase of Government bonds. Ad vances for 5 years with amortization of 10 percent per annum, payable 2 quarterly, for purpose of retiring Government investments in stock. 3 All other advances. All advances. 2 12 On advances not exceeding 6 months, for purchase of United States securi ties or for the retirement of members' securities owned by the Home Owners' Loan Corporation or the U. S. Treasury. 2Y All other advances. On advances not exceeding 6 months. 11 On advances not exceeding 1 year, but in excess of 6 months. 2 On long-term advances for the first year of the note. 2 On long-term advances beginning with the second year from the date of the note. 2 11, Short-term advances amortized in equal monthly installments. 2 For a 6 months' period ending Dec 31,1943, on 1 year unamortized advances for purpose of repurcha-mg share investments made by the Home Owners' obligations. 2 Loan Corporation or Treasury, or purchase of Treasury 1 24 Short-term advances amortized by not less-than 2 2 percent quarterly. All other advances. 3 2 Advances not exceeding I year. 212 Advances exceeding 1 year. All advances. 2 Do. 212 Advances not exceeding 90 days, when collateralized by Government obli 2 gations (no restrictions on renewals). Advances not exceeding 6 months for purpose of retiring Government in 2 vestments m stock, effective during July only. 3 All other advances. Secured advances not exceeding $50,000 or 10 percent of member's line of 2 credit; whichever is greater, for purchase of Government obligations. 2Y2 All other advances. 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C0 o m c0 Rdq0t4N0 00 0L > 00 000 M-t oo00040q '4 0004 m0 04-0.00440 4-4 00 C) CD0444 t0 - 4'0lN4 00 X00 40000 400 04 0 001 04 000 to 14= S0400 t- C040 0 co co40 C4D 0 0S400 ~0- 40 040 N M4000 0 0- N04004 04440 044 0000 40 000 00 00 4c40404 ,C4 40 r-404 0 0 0 0 t6 4 6 00 00 -'04 '04 0040 00 e 0 04 4 40 CD04c0c040 440)0 >0 a>0400w 00 CD0000040100 c6 C'41 e6 00 0 40 6 000000 m0 400000 0 C006t000C6004 0 0000 0 0 0 C6 00 0 0 t0t 0 4.) 000 4 0 04 czo C4 0000-1 4C) '0406,~ 040404 0 044 00040010 0000040400 -40O C)0 00 400440-40) 00 '04000400400 m Z 04 00 00 40 0400 000 004 D0 40, 0000 00 0 t-04 - 0000044 00 0 ll0)0000 m 4 00 la00C06 04 04 0 040-t 00 0-00 4' 0000m 4 0 40 40t 0w 444 04 o6 04 ~CO '04 v tC 046 0000-0I 000 000000tm000-00 4 004444 4e 0 044c 04 040 -4- C a)0 4 C304 .2 +2 40 4 40 40 cerc 444 4 4 40 00 ca0 ce0 00~ rc5~ 04U ,4 00 00 1 'c o-:v0 04 m m4)o0 .40q P4 0 '4 .q C04) 0a> 0m 40 04c 0 t0e 41 0-40m 1-4 e 10 1 =4U00000 04 4 00 0 04D t00 to 0040 C'04 666C C) 4040CD 0) C04 400 40D L60C0 0 0 00 4 00 0- C0 40 00 40 40 0040 REPORT OF FEDERAL liOME LOAN BANK ADMINISTRATION C00000C 00 C1100 0 0000 - 0 cOl S - 0 0______900) o cc 0 00 000 LO000c0 to Cr) 000 0) 0 0 000 C0 I0- C 0I00 CO 00 t 00 0-000 00C0000 r--4 0 00 0 00 ,) 00000 00 0 r 00 -T 00-0-) 0 1*OCZ00 :0 oo M C11 O 00 0l -t-000t0-0 00 e 6o6'6 001.& 000co 00 00 .-14 0tt c 6 4 0C) 0- d4 000C-1 0000 . - 00 4' 1,- 000 C 00 0) 0 00 0000 0000 0000 00 00 00 00 0m - 0 0CD 0D 0) IN0000 00 "00 (;; 66 0e 00 O00 C> 000 tq00 0 00000to 00 0C0 00 00I 00 00 I- -5 4 t- r00 6 100 (6 100 0(000, I000 00! cli co 4= cy: 00 C14 C) to C)MI ee C) m lltd4 T--q 0 0000 t00 0 0 0 0 00 00 00 C) 0-00C0>rC 00i 0 000 00 00tot- o )0000-00 q00 00 004 00ll t:000 00M )00000 000 m6 0 -- C) 0C00 Cc t,: 4&o 00 =0- 00 0000o t 0 cc0 00000 ' ci 00 0 0 -e)r- 14 0c00 C "4 00-4 00000 to C00 C>00o C0 00 -C,)(5 y) c -0004co0 C0000 I 0 000000) 00co 0t C-00 IN00 00 0 O$li 6 O Oi 00 000 000 ,:ti to 000 00 0f c000000 000000 cooc' 000000 00 e6 r-. 00 00 i00000 00m 00 00 000000C) 71 t 00 00 00-4 00C o- v0q00000 000- 00 0 o C00 0-t C>CID0m5CD0000t t-00 t00 0000- 00 t0 r4o6-tqm 1-4 t' CC00000000 00 0 00tO 00 00 0 '0' 4-4 :000 '0 0 0 '0) 000 '00) ca '00 6 06 00000 00 0)00000 ~ ~0~0 -- 00 000) 4-4-4 00.-o00 o0~0 0) ~ 0~)~ ~ 00~ -.000 0)0. ~ 00~00 -~ 00'0 0 0a 000)0 -i 00000 .0 00000 00 0t 'C WC 0) '0) 0o 4o-4 as c000 C0')0C) 00 0 P4 53 54 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 6 cq C=>I lc Ci C)000 00ico00 00 kciC.0 00= 00006 S b 0000d, m00 0tq ,m m 000 X0m 00- C 0000 or-i r-i- I -) "o0m00009 C) 0 00,1 00C CDC11 0 t 10 C* C00 co 00 00 000 o0 t-00 0000 000 0 0q000 000C> r-: C ( (: 00000 r. 0cc ll000-100 06 ) 0000 t ) C) : r- 00 c t- m l - too 0 '00 o o00 Cl c - (Y 0 1000 0 C)0*) Ccz 0.0 C) C14 00i 001 0: 001 C6ci, C6 r--l 00 X0C11 cy)C> CS 0 01 cir$l~l C 0 0j 0LO '0) E0 0-4 0:00 ''0U): '0)1 '00'T ;-4 C 0), t 0000C0 106 r-.qr.-I oo?C) r '-Iq 00 l 00 elo oo 10 to CT.) O c 00) C100i (M00 000 00 Nc-i 00 r04 00100co Lo ccI "It oi 0o e,1 0 00 cc c"IC l 00=C) oi 00 ot00 r-iI- 000c000 00T"009 (C) 000 0) 0C=0 m00 N14000) 0t- 4.55 . 4DAZ-' V) 0 C) C) 00 4-D(a) (LIO 0 0 0 REPORT OF FED1HPRAt HOME LOAN BANK ADMINISTRATION m C) kc-I C) 0 ,14 m C)0 1:4 C-1 '"q m P--4 .4 IF," r" C "14 cc C%4 cc = LO 00 XO t- 4 oo cli CD C11 00000 *0 cli 00 _; 06 cc m000 m011 CD00 00 00 0000 06 (M eo!a 00 -44m Cv*-, 00 C00 0' -o C 0000 C>0 ce XC) 00 00 0 oici0 oli 0 m00 H0 CCC C' oO 0000 0000) I mLoI0 0-0 000I- I00: 00 cy: 0 0 00 l I0 "0 H 00CT00 0 0000 00 Cl000 ) 00 0- LO 10 to I Cr.) 00m (X C C) C) C C11 00 Cl.or 000-14 0 I- C4 1000100 00 m 00m 0L 000- 0000 000 00 =00 0000 00r 04 -, 0 0 00 r0000 0000 C 00 0011 0c I- 00<= C3 00 ci oCi5,z ci 0000 t 0000 T-40 000 -ci S z C, 55 56 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 00D 00t cc clicli 06 L6 to 1.4cc 00 V-4 CIT I10 00 cq r-4 F-C00,4 F-0 COO CO o o ca 0 o Q -'rl4 mCO 0) CD m r.'0 OCO CO CO CO 000 7-4 CODto CO CD00 t- C) r-4 C'iCC) 0P. 0l) I00to xo 0C) ) 0 C0 m o CO r0 CO -lCO c6o C6 o6 c,4o 0 )O 0 c3q CD 0 cq C r-t C 00 O 0F6 cq CO 0 O 0 -n CO F-4CIDCO 0 COm t- CtOCO Q C> 0Ovi 00 tdi OCO C0 F1 CO mCo OCO m 6 0. z CO C00C5 0 COO CO 4 6 FC! CO C4 F 0 c6 o6 0 - tC C-(D 0 r-4dco C I O(C c k cocO o I P0 4 c 6 6 CO r4 CO CID0 . CO CO 0 -t4 r000i VOF- e00) 0 CO CO0CCO C)-:i(= r4 Ct oyo '. C 4,e CCOI "i t~144 0) rCO coCO Cr4CO 0 0000 co cq COC--4 m cq0 00 0 O CO lC F- CO -4 a; i D 6 0,o6 CO CO,if:) . ;.4 o oo 0 C V-4 c C6 00C00 o F-CO00 r- 00 cil ka O CO " = Q0 c ei616 ccOcoCO0 c mr-4m 0COCOT 0 0 CO0 =co C CScy CO CO 0c o Cr_ -Oil C o CO 0 O ,Irv COO r2 0 0 CO CO 00 0 0 F- 0-0 0 wOC C m0 mOt0 O0a -:vinC = w-4CD 0C 4Q, z r3 t0 I I C o C 0 94 rCO C0 000 t C 00 F- m toC o CO FCO CO CO = OF Ct- F-C) CO CO 0w COS CO -- z 0w COM MCOC m O 0m 0COCO CO CO COCOC2 UZCOco- F-t C COC COCO&6 eCO 0 CO co. ICD 0 ce C 0 t"C rd oC 0 Cc' M H' C= ow r-4I C) 0CO bip C 00 0 CC 0 CO CO 00c$ viOC COcd Cd 00 ca r-I cc A ce r-4 ca A cOC CO CO -7-7 CO C t CO4 He REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION (M t-C)00 4=00000C C66 N0 00 r-0 00 C) ka 00 r 00000a .d4 0 0 (M r , ; c; CYD0rL-o L- (=oC) 65 0 C0 Co o cq 0 02 LO tO 0'-4 & O 000*010 ooCC m 0 ui 6 c 14Ld 70 M0 V04 la C oo 6 to4c6 t6 I- 0LO 0 E-1 00m 0 m o -1 4-a (M 00 00 0- -4 m r- a O4 - Ci. ;t o 0 - 0 m M 1-0 0M0 o0-m o I000 0) C32 m0 "I t- 14co0 0 0 0L 0m o r- -M2 0C 0 L6o C00 ci 0 0 - ooo= 0 o .2t- .00 1 0 t000 0 or-rC) to6,-4oc m q 0c r C0 t 00r4 r k0 0 w 6 0 0000 00 0 00.22 0 0 0 00 0 0 0- 00 0 to I-r-m S0 0 0 x r-4 04 0 00 000 to.000 0 0 0 00 r- 0 0 c- c- r~ k~to 0 N.2 64 0cor-)000 r r- 220 .2 o -i 0 i 0 c t 0 0 0 0 0 w0C) co 0 000 0000 0 0 o or0 C)t- t-cm .22 cc t-o 000= to- - t0 0 o 0L 0to 0 0 cQ 2C22 0) d2 0 oro 0 t- 00 0 Do C000 4 N- 0o D0 m00-00 6C c #oo 0 0 m( 40 6 C5 o6C00 0 w 00 00 0 0 0 000 co 0 roo o ) 10 00) o C)--0to 00 0m 6 (,o -.00 q 00 Co L0 0r-4 I-0 Do '10= 0 ell o Rdq 00N -IC U-0 ro4 q C P4 C4 C0 t- C6 0 o ;o 0 6 co0 " la 0 C4 0 c r4 0 - 0O ) t- 6 c 0 00 0 0 - 00 0D ) m c0c r-q t 0) 00 0 2 ,0 ' 00~ GO 0 83'0 ca~0 -442 2 4-0) Q-0 00 0 4al2C pl.,u A~ 0o 00 rd.0 P4 57 58. REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 5j[5 ~~~~~- (^^ 8 ^ LjQ § ° CO I oo 14o I'l -tv <M S *f *00 o (m co ) 86 P-0 __ 00 1001 0Z 2 0 C)0 I--5 00000000 [ 0 000 t-ot CO 0000^e 00 0 0 0.0-i 0 r-5q * CYD s c^'c;^-"T^'^*'o'' 0000l 0-' T ObCO 000000 00 CO 0 0 016 00 0 00 10 0000000 0 CDCDcS CDCD -0 C C> 00 O 0 C0000000 00 C 00Is 00010-0'0-0 00-0 m m C = 0V--4o ce C6 m to: 14 j6 00 Lo t . 00o00r-- 0 10 ___ - ^ m -4 L0 C6 N§ 10ko X0 00000000000'. " C- Cgl-4'64 W "t 000X 00 1o00 __ -q C _ C 10 - mm( oo[o 0 00 r-4II( oo 0 0 00 0'-0 060 C 6 - M0-0t _____ W c o c 0 _ t 0o m Cotc t w X,. C1 C1.1 Il 0 0 i^______________ Q 0 OS 0 co 0 J o 0 C<n I§'000C 0 ; 0 ~ ~ ~ ~ §Ln _q 2 ^0) 00 00 r 0 rm 00 <N0-CO I C> OS C>T 1=7 C >OC'rC) moo m- =' o-cq C1 OtOl00 CO00 cC01 00 C 00 00 '-. 0 _g1^_ O600100 ll 6 l CO < 1200 r-' k6 C)O(B 0i 00 oicocci& o COIt001 0V1.100 0 0 l~i eco 01 000 00 (00S OOOO.CO 10 ocilcirR&.§4M Ir$ I- 0L 0 00000000 x Wr-- Icm (= tlcc C00 0 ?lO St(OS t mc0000C4C)CI -^ C Itx00000- mC 000N000010 CO0l000 O CO0-.0m N0 r-O' C)'-i CD' C C )O tcd ss ' 10i [ 0: §0 §0t40 00000000 Os'oo^ R^co ; cC 00 00 0 I 0 00 CIA 0 O 0 N 0[0 00 m o tt N 0 20 o C6 "1 qf1 00 11t.C O00 0-000000 > -0 Im ll"q000 00000000. 0O0000CO 00t^COtoCI r1 000000 o6 oo .i dc 00 &o100oo CM o iIo C1.1< 0 S55o^f^ CC C) OO 1_______ 00LCO -! CD oLo 0000 r-0000000c 10 0 " 4C 1 0 CO ko1CC '41:V-.-001 CO14 oilD I0q N .000 C)OC.'') CO CD C)00 00 i. ; 000N2 10011 q 0 r r0000 0 000 d . N X 0-4r 17 o 00C?-C U 1 r-4 a 4 )c "*l10000 -4,-. .- 0~I C.)II000 ; a> C oCO C 0 C0p000 Do C CD 00- 000CD000C 000000C-')c 00 t000C= c 0o 1 r-100i 14r-4 600012 1I 00l mIN o.0 00 C) _^_ D > 00 c000000- III -l) io«OOOm CO O coosos > C -dl DC)000000 c= 11 CCC)000COD OO o-00 N00)00 &4 0 1= ~ 0'oO t-0o. co a>' O'CC CC C o 00 000 NCq'S 000 TrOC t--4C IS11 l0000c O00CO ______ ii__________ 6 eU.C6k 00j006 0000000000000000; § C) C _C__ T) I g 1 =i0600000 " II I 0 00 mC cc a M m _ C-- C -§ IA O OIO -0 010N~~?--4---rm---- I a 4-5 C CO:C00 0 ___ m '-^ N C" 00 §^e 0 1 c -, ". 0 '§^^ C Ci c 0o c t- 0 0 t-:, q vq-1qM a) C "CI' "t 0 ___CO t- g 10 gr- C,-' r00 c 006 S OM 0100 1C v-C4-4 00 0 000XO'0 00 0t0 0 coC 0 00 N r- r-0 0r-00 000000 q04 Q0 0C> > C CC c C Co - Co - Cc'c -t '_____________________ Ia SQI coOq ooIII I'- o L00 ? 000000 W- CO,4^i t^riC CO' ) C)IO mO m'O C.)^ 0 0 0 0 5 CO C-o OSr00 00 0I 00 C=C)f r" 000MtoM"q00 C)l C C CD <= 00r c "40t0 I- 1 , I 0 c C> xt, 1 ^ '^ 02 C11-0 0C000 00 to M 000 0 co to ^ I> 02n m I(0 8 t-: 0 C) cek-li 0 'IF44 000 0 0 00 eo cooo -T T00 r00CS 0 PC4O 0 / C)0 O r-q I 04 tr 0 00000 0i°0 00 0C000 -[100. 0-4 0 0 0 o0 o 00000 Lkoi t00000 c000 000to 02 -t 0+ c t 0 -1Mq cy cc00 n 59 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION S= =(=(=11 ( 140 00 to m I t 06C 0)0e0 ~00 0 Cq 000C1C100 00 0 0000 U- Ccl c%0)0 cc 0I 0- 0 o 11000000X C0 t0cc0r0-4 oo 00 V-11 to X0 C 000 .4 44 00t-00 I- 0f C6 ot 6 ci NN0 0~ 0r - 0 9t 00 0- m m K 00 0000010 0000mCZ N14X0m cc 0 Lo C)CYD - - C400 :, t00-10 mr40I Dm rq 00 m 00 r0- 100 0 0- 11100 0 0 - Cc 0000000001<000 c __ III____,4 1 ot ,, :1 rc 0I- d4 0 r-411 1m1-0 1 0 0- U)0-000010 0SN ci 0 I- 0 00 00I0 0000000 'cj04-0000-C, 0 N00 _ -0 0 _ )_ D _______ t- - O " = Mm : 0 __ ) i mS 0000C 00 0-00000 0- t0 m KD )_nCDK<=_C C_C)C)C -___ I_____ M.-I)00 -- m0c0 n-4 o' D 0 m t 0000r4 - 0000o q10 00000000 0c 0000 j-4COD1100 0 co0000 00 C> 00C) CD1I r-l I-m 0 0$& 0 C0>00D c= o000 0 __ ____ _ ____ _C ggccn____CDCD ) D______ = > C:_CC_ ____ 00 Fo qm r 0 0 m00 :014 400 U0.00t- - - - .zlvi Coe00000 CDCD __ ce X m 00 f014 V-4 Cq10 t-001100 t- 1 O)00m110q 0 00 0 o - C6 ,-600 -- cX0)0 00 c 0qR4t mo 0 000"1400000000 c0 0 t C --d 0000000( 11o 0 c -M,= (=II C ll 0y I0060o11M 0 -4 C) C) C) CY61cyi 00 m ka if.) ,4c I- C) r-i T--q_ C) C:) C) C) t- CYD C) C) CYD r--l C) M (= (= m (= C) m C) C) CDCDC) c i64t6,4' r- co m Ild4N t- - 00 C) C> CID t- 00 X m000 0000 0000 1000000t c 0000000C C C C)000000C (= (= C) CD C) C: C) C) C>C) (=>C) w.tt 0000000 Lac OwC o 0000-00CD 00-0~c~ccv ,4'q -o ,4' m CDr 0606 m X6 L ce.) 441 a3 54 44 rd ca 0 0 0 rd 60 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION EXHIBIT 22.-Federal Savings and Loan Insurance Corporation, Washington, D: C.-Statement of condition, June 30, 1943 ASSETS Cash in U. S. Treasury: Special deposit account----------....-----------.-----------------.......--.... Available for: Administrative expenses: 1942-------. ------------------------------$2,443.91 1943_ -------.... --------4,093.83 Employees' bond allotment account----------------------------------Victory tax account--------------------------------------.. ---Accounts receivable: Insurance premiums: Payments due---------------------------------$13, 740.75 Payments deferred--------------------------- 1, 025, 363. 71 Admission fees due_------------------------------ -----------Due from receiver for institutions in liquidation ---------------------Miscellaneous----------------------------Liquidating dividends receivable on subrogated accounts in insured institutions--------------------------------------------------- $961, 578.82 6, 537. 74 1,196. 10 2,611. 50 1, 039, 104.46 2, 531.04 3, 029.84 6, 825.63 118 44 1, 051, 609. 41 Investments: U. S. Government obligations and securities fully guaranteed by the United States (par value) ----------------137, 062, 500. 00 Net unamortized premium and discount on investments .--------------- 225, 092.33 Accrued interest on investments----------------------------..------------.. Subrogated accounts in insured instititions in liquidation--_-------------- $4, 556, 070 06 Less allowance for losses ------------------------------------------728,903.45 Total assets ..---... 137, 287, 592.33 110, 861.49 , .........------------.---------------.. Deferred income: Unearned insurance premiums--------------------------------. 1,833, 487.08 217.63 Prepaid insurance-premiums--------------------------------------Capital: Capital: Capital stock- p o ...-----------------------------. 100,000,000.00 - - 3, 827, 166. 61 143, 249, 154. 00 LIABILITIES AND CAPITAL 1 Liabilities: Estimated expenses incurred and not billed at close of fiscal year --------$4, 622. 58 Employees' war savings bond allotments-_ -------------------1, 196.10 Victory tax withheld from salaries of employees-------------2, 611.50 Unsettled insurance claims------------- -------------------------55 67 Reserve fund as provided by law. --..---------------- $971, 924. 16 8, 485 85 1,833, 704. 71 17,406,963.44 (The Corporation estimates losses of $2,711.46 on insured accounts aggregating $21,020.71 in institutions in default, pending settlement or not claimed.) Special reserve for contingencies -----------------.------------24, 000, 000.00 141,406,963.44 Total liabilities and capital-- .----. ---------------------- ---- 143, 249,154.00 1A contingent liability of $366,944.76 exists due to commitments in connection with the prevention of default in insured associations. REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION EXHIBIT 61 23.-Federal Savings and Loan Insurance Corporation-Income and expense statement for the period July 1, 1942, through June 30, 1943 Income: $4,000,101.27 Insurance premiums earned ------------------------------------.....----37, 150. 76 Admission fees earned_ Interest earned on U. S. Government obligations and securities fully 3, 556, 880. 66 guaranteed by the United States------------------------------------19.65 --------------------------------------------Miscellaneous ---$7,594,152. 34 Administrative expenses: $175,376.68 Personal services--------------------------3,221.63 ----------Travel 6. 87 -------------------Transportation of things - -3, 527.08 Communication services-------------------------------------271.38 Printing and binding --------------------- 10, 059. 82 Other contractual services--------------------------------Supplies and materials -------------------707. 50 401.40 Equipment -------------------------------------------------Services rendered by Federal Home Loan Bank Administra-, 98,056.84 ---------------------tion -------------- ------1,819.00 Administrator's Office of National Housing Agency_ -------Total administrative expenses ------------------------------Nonadministrative expenses: Personal services-------_ ---------------------------- $31, 957. 68 845.39 Travel ----- -.----------- ------------------------------14.73 Transportation of things --------------------------------311.76 Communication services --------------------------Printing and binding------ -- -------------263.64 5,093.03 Other contractual services----------- --------------------122. 91 Supplies and materials-------------------------------------32.00 Equipment..---.. ---....--------.-----------Total nonadministrative expenses 293, 448. 20 38, 641.14 ------------------------------..----- 332,089. 34 ------------------------. Net income from operations ..-Nonoperating'charges and credits: Profit on sale of securities----------------------------------Commission on sale of securities----------------------------------------- $2, 069, 779.08 8, 281.25 Net income for period ----------------------------------------------Adjustment of net income for prior years ------------------------------------- -------------- ------ 9,323, 560. 83 152 83 ------ 9, 323, 713.66 Net incoime --------.- ...--------------------. ----------------- - 7,262,063.00 2,061,497. 83 -- DISTRIBUTION OF NET INCOME To special reserve for contingencies ---To reserve fund as provided by law Total---------------------------------9, -----------------------------------------------------------------------... 3, 000,000. 00 6,323,713.66 323, 713. 66 62 REiPORT OF FEDERAL HOME LOAN BANKE Co Co0o =o0C C-t 00C CoI 00o~O P- 00oXo g ADMINISTRATION MCI CoLO co Co C4, CCO cq~~~ Co F CO Co CS 00 Co Co Co V1 1 It- 0 C r'co'Co' I 1 100 1'Lez I I 0 co m Cc o ' (o'C r-4C r-C co Co Co Ico &n 00 r" C-1C-1o Mqd l cq CoC -6-D a3CCCc ICo'C14 0-4 14 Co Co ~CE .4e~ 0 0 Co) CO .0oo zo U Co Co 6 CT z0 0 Codco 0o .I Co0 P4 CC C~ Uo Co00 C o o =C)oM~Co-4 I cqC=)oio oCi C CCO-qC) .d4 1 to- cc -Cotq C C6 -4 Co C o odo 0 coCo'cC>Co N Co (co ,'0C Co ) Co -:4 C' o = Cc - 6ccc Coc: d co LOCoI C, o coI ci Co P4 C z CO E-4 -1 E-1 0 P4 0 C E- 0 0 X0C 1*0 ccC tC tOCC sC-CC 4jC 1 10 1 1V 4 CC~oCC4-1 Cm ~ lO C :0.o--W 0 0 2ce m -4 m - Cb ) 63 RowEPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION nz0 Ci m 00 0 0 C) C! C14 :00 M'0000 '000000i '00000 1'00 0 t000 '00C' 000 00 '0 000 0 000" 0'00 000 0 000000c (M 0000 '0 0 006 0 00000 : 0m 00to 00 C1 o0D C) 0000r-00q t-= o5 00-t 000ojC: =0 Icc0-41m0 -q C)0 00c1 00Y000 '00 '0 moC4t-0>00000x0CD 00 0000-i q N00O N 100 000 0 000000 m -- 0000M 0= '00 00 000 '00 00S '00 00d '00 00 I 0-I 0, 0 00 00 k )0 c ZI 00Nt-0000 'e 0I00 0000-C4-, C 00I 00001)e mm C 00 0 O00 00 0:C C)0 ()10 -'C)C m m m 0 '00 ,0M00 -- I-00k000r4 00) 00 00C0 C001 0N 0 0000 r-4000 C) r C>Ce C(D cli 000 C)0 - '00 0 -I O ()00 cq 0000M C) t'- P4 0 ,4'c6 cei 0 00 0 z0 Lo cy:) 0000 cr.)cy:) ko C) ci, C6ce L6C6 N r--iI m0Lo0000o cq 000 ?--Im <= C.0CeD 00 -IqIrD00 r--qC) 00 cli 1- 00 (M 00 (m C) -- qM r--l00 C'IM C) c ,t4C) C) C14 cli 1-400 cli I'll 0000o kO I'l 0C 00 00C 00L 00-i 00N00CY 00000100r--40100C00000000x '00 00 0- '00 0 0 00M000 1000 q000 -0 0 00) o00 co -tq r" t'- N00 X000010CY 0 z E '00000 " .Iq 00'o 00 0 0 c'00 '00t -t-40 I Z00 00L '0 0 00000 00'001 00 00' 0 00000 -) cc 0 0 00-to r I I00I 1'00 '00 '0 111111-lI ''''0 0 00 "0 '00 '00 0 00 00 '- 0 0 __I__.__o 00;00 0) 00 N0(=> 00I Z000000000 00000 0 '00 000 C 0-11 I '010000000-00 :>00 0 M 000 00 -0000I I 00 I C;0-0PIZ t0000-0-1 00)100 '00000 0 '000(2 0-S) '00000coC) -'000 I-00' '00 0 t- ' '0 - 00 'f0C ''000000j t00000r 00-00 C:)I 00N -00 oX 000 .0- 0'4 0 '''' 00 II'00'1 0000 0 00 1 '-00 l 00 -00 ' 0t'00 "'0 , 't, 0 : C C0= I'0000000X '00000 1000 0 00 0 0300 0 1 *0 '00 060.. 0 0 Q0 bb rd *0 C/I0 b0 0020 00d0 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 164 C.0CA I co 00 1 I co CA CDC14 m0 (5 '-q COD o no ko CD om OwCA CA 00 m 1000 wyCc D CCA 06 S A Cq mS0 CqCD 00 CA tic, 00 '-1 AD DO~0 144 00 m Cq C1000 04 CDmD no C) co 00 00e t) bk4 t- DO CAmD 00 CAD mD 00 -0) 4. 0) Q 0) 0 CYD cq 00 .04 0 Q 00 o m lti 0000 CA z0 Q) C CA no CID cq to 06 to w( CO00 0 0 OTOO 00 00 Cy:) t " C14 AmmD CAOM oco CC CY.) 00 CC) t C, o6 CAC:6 CD r-.4 C) X6 Cq cq 00 cli m 00 7-1 Cd ;t4 40 0-) 00 65 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION EXHIBIT 25.--Home Owners' Loan Corporation-Balancesheet as of June 80, 1943 ASSETS Mortgage loans, vendee accounts, and advances, at present face value------------------- $1,441,153,110.68 ---------3,764,871.44 Interest receivable .......--.. .................. .........-------------------------Property: Owned .- -----.--------- .. .------ $187,952,362. 67 -- In process of acquiring title-------------------------------------- 3,346,465.66 ------ 1 191,298,828.33 1,636,216,810.45 51,588,736.90 ....----------------------------------------------------- Less reserve for losses ............ Total .................----------------------------------------------------------- 1,584,628,073.55 Investments, at cost: Federal Savings and Loan Insurance Corporation (entire capital)-.. $100,000,000.00 Savings and loan associations: Federal-chartered--- -------------------- $85,184,450 00 State-chartered--------------------------.23,218,960.00 A 108,403,410. 00 U. S. Treasury bonds (borrowers' special deposits), at face value ... 9,984,000.00 218,387,410 00 Bond retirement fund Cash (including $6,027,900 deposited with U. S. Treasury for retirement of matured 6,128,767.04 bonds) -----------------------------------------------------------/ Cash: Operating funds (includes $2,192,226.96 payable to bond-retirement fund in July 1943, and $14,811,383.90 deposited by borrowers and employees-see contra) ----------- - ----- $39,631,823.49 National Housing Agency-Homes conversion program-Conversion --------------------------------------- 38,497,497.12 fund (see contra) Special funds held by U. S. Treasury for payment of interest coupons .. ---. ....------------------------ --- 1,624,691.36 (see contra) --Fixed assets: -----------Home office land and building, at cost-------------.... Furniture, fixtures, and equipment, at cost ---......---------------------Total-----------------------Less reserve for depreciation----------- ---------------------4,815,098.35 --------------------2,199,145.84 Other assets: Accounts receivable--.. ----------------------------------.....-------------------Less reserve for uncollectible accounts receivable S-394,662.50 Deferred and unapplied charges: Unapplied property costs and expenses----------------------------Miscellaneous------ ------------------- Total assets__-- -. 2,615,952. 51 412,991.27 18,328.77 48.00 161,050. 59 -------- 79,754, 011.97 2,987,819.93 1,827, 278.42 161,098. 59 ------------------------------ 1,892,069,976.16 LIABILITIES AND CAPITAL Bonded indebtedness (guaranteed as to principal and interest by the United States, except $165,125' of unpaid matured 4-percent bonds guaranteed as to interest only) 2Bonds outstanding, not matured ... - - ...---.. Bonds matured, on which interest has ceased ..---------- . $1, 729, 481,800.00 -------- Accounts payable Interest due July 1, 1943, and prior thereto (see contra) ....-------Vouchers payable..---------------------------------------------Insurance premiums -------------------Commissions to sales brokers.....---------..----------------------Special deposits" By borrowers ..-----------..-----------------------By employees _--- - ----------- Victory tax withheld--....----------------Miscellaneous ---.......----..-----.. 6,027,900.00 1, 735, 509,700.00 1, 624, 691.36 4,153. 68 204, 487.97 50, 655.85 24, 610, 329.90 81,032. 50 ----- -Accrued liabilities Accrued interest on bonded indebtedness ----------------------Other accrued liabilities-----------... ------------------------ ------ 104, 021.50 56, 884.37 4, 836, 519.67 190, 310.44 26, 736, 257. 13 5,026,830.11 Liability for special funds held: National Housing Agency-Homes 38,497,497.12 conversion program....------------...............---------------------------------------1 Property owned and property in process of acquiring title are stated at values represented by unpaid balances of loans and advances; unpaid interest to date of foreclosure sale or judgment; foreclosure costs; net charges prior to date of acquisition and permanent additions; imtial repairs and reconditioning subse quent to acquisition. Unpaid interest included in these values amounts to $9,200,360.28. 2 Total bonded indebtedness shown includes unmatured bonds, which are guaranteed as to principal and interest by the United States, as follows: 3-percent bonds due May 1, 1952 .--- -------.-----------------$778, 577,775 1 h-percent bonds due June 1, 1947... ---_-.-------------------------754,904,025 1-percent bonds due July 1, 1944- . . . . . . . ....... . 196,000,000 66 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION EXHIBIT 25.-Home Owners' Loan Corporation-Balance sheet as of June 30, 1943-Continued LIABILITIES AND CAPITAL-Continued Deferred and unapplied credits: Unamortized premium on bonds sold -------------------------------Miscellaneous....-------------------------------------------------Reserves: Fidelity and casualties --Fire and other hazards-------- - ------------------ Capital stock less deficit: Capital stock Authorized, issued, and outstanding -Losses in excess of net earnings - ------Reserve for future losses ---------- ------------- $65, 242, 430 53 452, 337, 090 50 $799, 130 90 2, 331, 728 33 248, 074 28 500, 279 32 - $3,130, 859. 23 748,. 353.60 200, 000, 000 00 117, 579, 521 03 - 82,420, 478.97, .-.-------------------------1,892, 069, 976 16 Total liabilities and capital ----3 The figure shown above reflects the Corporation's actual losses sustained in the sale of its acquired properties; on mortgage loans and other losses; on fire and other hazards; and on fidelity and casualties in excess of its cumulative net earnings. 4 The reserve for losses is being 'accumulated at an annual rate which, on the basis of careful estimates, will approximate the total losses which may be sustained in the liquidation of mortgage loans, interest, and property. The figure shown above reflects the reserves which have been provided to date for such future losses. NOTE.-Except for property transactions which are recorded on a cash basis, major items of income and expense are recorded on an accrual basis. Therefore, no asset value has been recognized with respect to uncollected rentals or prepaid taxes nor liability for accrued taxes. EXHIBIT 26.-Home Owners' Loan Corporation-Statement of income and expense for the fiscal year 1943 Operating and other income: Interest $54,110, 771. 71 Mortgage loans and advances--------------------------------------------------------------------------------------------- 16,429,292 83 Vendee accounts and advances Total -Special investments -------------------------------- 70,540,064 54 29,426. 22 ------------------------------------------ 70, 569, 490 76 Total------------------------------Property income -----------------------------------------------------16, 768, 486.01 4,729, 649.00 Dividends received from savings and loan associations--------------------------794,077 12 Miscellaneous -----------------------------------------------------Total income_ -------------------------- ----------------------- Operating and other expenses Interest on bonded indebtedness------------------------Less amortization of premium on bonds sold------------------------------------------- 92,861,702 89 38, 579, 608 77 203.830. 80 38,375,777.97 Administrative and general expenses: Administrative expenses: 10, 711,748 73 -----------------Current fiscal year-----------------123, 261.45 ------------------------------------- -----First preceding fiscal year 124,458.18 -.------ ------------- ------------All other fiscal years 272, 174.03 --- -. -------,----General expenses--------------- ---11, 550, 908. 39 - ----------------- --------------------------Property expense Total expenses---------------------------- ------- 60, 762,889.49 Net income before provision for losses which may be sustained in the liquidation of ---....------------------- 32,098,813.40 ---------------------------------assets Provision for losses: -------------------- 40,000,000.00 On mortgage loans, interest, and property -------------41,018 51 For fidelity and casualties---------------------------------------184,667 00 For fire and other hazards----------------------------------------------------968. 57 -----------------------------------------For uncollectible accounts receivable 40, 226,654.08 Loss for fiscal year_ -I Net credit. ---- --------------------- 8,127,840 68 REPORT OF FEDERAL HOME LOAN BANK ADMINISTRATION 67 EXHIBIT 27.-Home Owners' Loan Corporation-Statementof income and expense from the beginning of operations, June 13, 1933, to June 30, 1943 Operating and other income: Interest: Mortgage loans and advances---........................-----------------------.... $903,117,575.21 Vendee accounts and advances---------..........-------------- ----- 63, 190, 651.18 966, 308,226.39 231,488. 03 $966, 539, 714.42 Property income ----130,011,165. 30 Dividends received-Federal Savings and Loan Insurance Corporation. ----3,035, 326.09 Dividends received from savings and loan associations------------------40,064,410. 53 Miscellaneous--------------------------------------------------------... 4,356,528.06 Special investments---------..................----------------------------- Total ------------------------------------------------- 1, 144,007, 144.40 Operating and other expense: Interest on bonded indebtedness----------------------------$585,659,863. 44 ....----------------------819, 735. 53 Less amortization of premium on bonds sold-584, 840,127. 91 Amortization of discount on refunded bonds-....-------------------- 7,147, 710. 28 ---------------- 256, 744,113. 54 Administrative and general expense----------.... 105, 436, 987. 00 .... .....--.....----------------------... .........-----------Property expense_ Net income before provision for losses which may be sustained in the liquidation of assets ----------------------------------------------------------Provision for losses: On mortgage loans, interest, and property (computed in accordance with Board Resolution of Nov. 15, 1938)-------...-------------- $306,137,153. 25 1,245,745.03 For fidhlity and casualties-..-------------------------------777, 732. 50 For fire andother hazards------------------------------------968. 57 For uncollectible, accounts receivable ..-------------------------------......-----------Loss for period June 13, 1933, to June 30, 1943 ........ ------------Add unlocated payments-----------------------------$13,455. 65 -----------Less: Unidentified payments Repayments unallocated-unidentified difference - 14,197.04 ---33,780.04 954, 168, 938. 73 189,838,205.67 308 161599 35 118,323,393.68 27.652, 69 6,127.35 Total - -------------------------------------------- 118,329,521.031 Deduct surplus adjustment-reserve against fire and other hazards------------------- 750,000.00 Deficit at June 30, 1943.---------------------------------------------------. 117, 579, 521.03 0
@FedFRASER