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HOUSING AMD HOME FINANCE AGENCY HOME LOAN BANK BOARD FINAL REPORT to The Congress of the United States relating to the HOME OWNERS' LOAN CORPORATION T ! Q 3 3 ~1SSL-\ Washington, D. C. td^52j March 1, 1952 To the Congress of the United States: In accordance with Section 20 of the Federal Home Loan Bank Act, as a m e n d e d , we submit herewith final report relating to the operations and liquidation of the Home Owners' Loan Corporation. Respectfully William K. Divers, Chairman dams, Member Kenneth G. Heisler, Member HOME LOAN BANK BOARD HOME LOAN BANK BOARD HOUSING AND HOME FINANCE AGENCY WASHINGTON 20, D. C 101 INDIANA AVENUE, N. W. FEDERAL HOME LOAN BANK SYSTEM FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION HOME OWNERS' LOAN CORPORATION March 21, 1952 Reference Library Federal Reserve Bank of New York Federal Reserve P. 0. Station New York k5» New York Gentlemen: In accordance with your request of March 19 > 1952, we are pleased to enclose copy of the final report relating to the operations and liquidation of the Home Owners1 Loan Corporation. Very truly yours, Thaddeus Corcoran Enclosure CONTENTS HOME OWNERS' LOAN CORPORATION FINAL REPORT Highlights-—Introduction PART I - HISTORY AND ORGANIZATION — r Creation and Purpose-'• Instrumentality of the United States authorized by Home Owners' Loan Act of 1933, approved June 13, 1933 Directed by Federal Home Loan Bank Board Capital funds authorized - capital stock - HOLC guaranteed bonds Charter issued, and by-laws, rules and regulations, and authority for appointment of officers adopted Prime purpose - emergency relief and refinancing of distressed home mortgages, etc. Organization Board of Directors Officers Home Office -Washington, D. C. - New York, N. Y. Field Offices - Regional - State - District Organizational Chart - PART II - FUNCTIONS AND OPERATIONS—Functions Mortgage loans Capital stock - FS&LIC -Investment in savings and loan associations Homes Use Conversion Program - Lanham Act Operations Lending Operations Authorized for 3 years, June 13, 1933 - June 12, 1936 Loan applications Conducted in State and District Offices Processing applications and closing loans Loan Committee Disbursement of loans Control and identification of closed loans Closed loan defined Wholesale Department - Operations in institutions in receivership, conservation, other legal custody Classification of mortgages and other recipients of proceeds of loan disbursements General effects and benefits from loan closing operations Loan Servicing Operations Closed loan files, accounting, billing, collection, and related servicing activities controlled and supervised at Regional Offices Delinquent accounts Tax and insurance accounts — : Mead - B a r r y Act - maturities extended iii 1 4 4 4 4 4 5 5 6 6 6 6 7 12 13 13 13 13 14 15 17 17 17 17 17 18 18 18 19 19 19 20 20 21 21 21 21 22 Loan interest rate reduced to 4 1/2% per annum Effect of servicing activities, maturity extensions, reduction of interest, etc., on delinquency status of accounts Foreclosures • Forebearance Foreclosure activity - authorizations - withdrawals - results Authority vested in Regional Manager Legal Department control and direction of foreclosure operations — Property Management Control of acquired properties Appraisal and analysis - determination of value, marketability, rental price, sales price, etc. Appraisals made or directed by Appraisal Section Appraisal activities Reconditioning- controlled and directed by Reconditioning Section-Reconditioning activities Brokers - Corporation policy regarding sales, rental and management of acquired properties through contract brokers Contract sales brokers - approved sales brokers 'Properties listed for sale - Corporation policy respecting number assigned to a broker Sales commissions and over-ride commissions Corporation policy respecting orderly disposal versus "dumping" of acquired properties Summary of property acquisition and sales Contract management brokers Responsibility for collection and trans mitt al of rents, maintenance and report of rental properties, etc. Surety bonds - contract management and sales brokers Payment basis for contract management brokers Approximate number of contract brokers Properties available for rental and amount of rents collected Aggregate sales commissions paid ' 'Condensed summary analysis of capitalization, realization by sale, property loss by sale of acquired properties Net income - rental-management operations--. PART III - REALIZATION AND LIQUIDATION--HOLC Bonds - aggregate amount issued and use made thereof U. S. Treasury as agent for issuance and redemption of HOLC Bonds, payment of bond interest, etc. Funds provided for redemption of bonds and payment of bond interest HOLC Bonds issued, retired and outstanding HOLC capital stock liability liquidated Mortgage loans and vendee accounts - realization by payment-in-full, and acceleration of maturity by sale or assignment Mortgage loans and vendee accounts - accelerated realization by sale or assignment to financial institutions after June 1949 Statement, in summary and in detail by states, showing results of statewide contract sale or assignment program, including percentages and amounts of premiums Statement showing amounts of major elements involved in capitalization, realization, and liquidation of HOLC and the surplus resultant therefromPART IV - SUMMARIZATION PART V - LIST OF SCHEDULES NOS. 1 - 14 - ii 22 22 23 23 23 23 23 24 24 24 24 24 25 25 25 25 25 25 26 26 27 27 27 27 27 27 27 28 28 29 29 29 29 30 31 31 31 33 34 36 39 HIGHLIGHTS HOME OWNERS1 LOAN CORPORATION 1933 - 1951 These HIGHLIGHTS present briefly the operations of the Home Owners' Loan Corporation, and its final liquidation in 1951. CREATION - ORGANIZATION - The Corporation was created under authority of the Home Owners' Loan Act of 1933, approved June 13, 1933: "To provide emergency relief with respect to home mortgage indebtedness, to refinance home mortgages, to extend relief to the owners of homes occupied by them and who are unable to amortize their debt elsewhere * **, and for other purposes. " Direction of the Corporation was by a Board of Directors. From June 13, 1933 to February 23, 1942, the members of the Federal Home Loan Bank Board constituted the Board of Directors. During the period February 24, 1942 to July 26, 1947 these powers were vested in the Federal Home Loan Bank Commissioner, and effective July 27, 1947 the functions of the Board of Directors were transferred to the Home Loan Bank Board. The Corporation's by-laws provided for general officers and for the proper delegation of authority. The peak number of 20, 811 employees was reached in November,. 1934, 2, 762 in the Home Office and 18, 049 in field offices. OFFICES - The Home Office of the Corporation was originally in Washington, D, C , occupying its own building at 101 Indiana Avenue, N. W. The Home Office and operations were transferred to New York in September 1941 to make available office space in Washington for emergency defense agencies. As the work-load in the field offices diminished the activities were consolidated into the New York Home Office, which was finally closed on May 31, 1951 and the concluding operations conducted in the Home Loan Bank Board offices in Washington. The peak number of offices, reached in November 1934, was 458 field offices, including 11 Regional Offices, 54 State, Division and Territorial Offices, 208 District Offices and 185 Sub-District Offices. CAPITAL STOCK - The HOL Act authorized the Board to determine the amount of capital stock, but not to exceed $200, 000, 000 and to be subscribed for by the Secretary of the Treasury. 2, 000, 000 shares at $100 par were issued between June 20, 1933 and August 7, 1934. All of the capital stock was retired between March 6, 1950 and December 29, 1950. BONDS - The Corporation was authorized to issue bonds in an aggregate amount not to exceed $4, 750, 000, 000, exclusive of bonds for refunding; this authority was used to the extent of $3,489, 453, 550. Bonds amounting to $2, 688, 215, 850 were exchanged for mortgages; $ 100, 000, 000 were used in payment for capital stock of the Federal Savings and Loan Insurance Corporation and $701, 237, 700 were sold to provide working capital. In addition to the above, the Corporation issued bonds for refunding purposes totaling $5, 013, 865, 325. Total issues aggregated $8, 503, 318, 875, in 21 series. By the end of January 1950 the Corporation had deposited with the Treasurer of the United States the necessary funds for redemption of all bonds and payment of accrued interest. iii CAPITAL STOCK - FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION Title IV of the National Housing Act, approved June 27, 1934, created the Federal Savings and Loan Insurance Corporation. This Act provided that the Corporation have capital stock of $ 100, 000, 000, the total amount to be subscribed by the HOLC, and payment to be in bonds of the HOLC. This stock was held by the HOLC until June 30, 1948, when it was transferred to the Secretary of the Treasury pursuant to the Government Corporations Appropriation Act, 1949. HOLC bonds of $125,181, 749. 98 were cancelled by the Treasury to cover the $100, 000, 000 par value of the stock, and accrued dividends of $25, 181, 749. 98. Dividends of $3, 035, 326. 09 had previously been paid by the FS&LIC; thus total dividends received from this source amounted to $28, 217, 076. 07. INVESTMENTS - SAVINGS AND LOAN ASSOCIATIONS - Under amendment to HOL Act approved May 28, 1935, the Corporation was authorized to make investments in any institution which was a member of a Federal Home Loan Bank, or whose accounts were insured by the FS&LIC, and without discrimination in favor of Federally chartered associations. These investments were made in 1365 institutions in the aggregate amount of $223, 856, 710. The entire amount has been repaid, and without net loss; dividends amounting to $44, 745,479. 03 were r e ceived from these investments. LENDING OPERATIONS - 1, 017, 821 loans were made during the statutory lending period - June 13,1933 through June 12,1936 - in the amount of $3, 093, 451, 321 (highest average loan in the District of Columbia $5, 819; lowest in Idaho $1, 744, average $3, 039); this amount was disbursed in bonds and cash to institutions, individuals, and for purposes summarized as follows: (In millions of dollars) Commercial Banks $525.0 Estates, Trusts, etc. $110.0 Mutual Savings Banks 410.0 Individuals 575.0 Building and Loan Associations 770.0 Taxes and Assessments 230. 0 Insurance Companies 165.0 Repairs and Reconditioning 70.0 Mortgage Finance Companies 195.0 Miscellaneous Loan Expense 43.5 Wholesale Department - This department was organized in October 1933 to negotiate with regulatory authorities in the refunding of mortgages held by receivers and conservators of institutions in liquidation. Its purpose was to prevent foreclosures which otherwise might have been necessary in liquidating the assets of institutions in legal custody and to relieve distress by accelerating the return of funds to depositors and creditors. The department operated for approximately 18 months closing 137, 318 loans in the amount of $389, 527, 917, of which $340, 620, 596 was paid to institutions in legal custody; this represents 13. 5% of all original loans closed. LOAN SERVICE OPERATIONS - Initially, loan service operations were conducted from the Home Office at Washington, D. C., and as Regional Offices were established these activities were decentralized to a Loan Service Division in Regional Offices where servicing was by correspondence and, in seriously delinquent cases, through personal contact by field representatives. A major element contributing to delinquency was failure of the home owner to pay taxes; this situation was ameliorated by the Corporation making provision for accumulation of funds through monthly billings for accrual in borrowers 1 "tax and insurance" accounts. Agreements for this purpose were made with approximately 500, 000 iv. borrowers. Advances for taxes for the account of borrowers amounted to $171,173,035.44. Every possible forebearance was exercised before foreclosure was authorized; in 70% of the cases action was withheld until the account was a year or more delinquent. The peak number of foreclosures was reached in June 1936, when for three months approximately 8000 foreclosures per month were authorized. The Mead-Barry Act, approved August 11, 1939, (amending HOL Act) authorized extension of the period for amortization of loans from the original maximum of 15 years to a Tnaximnw of 25 years, where circumstances justified. 249, 904 extensions were granted. Effective October 16, 1939, the Corporation commenced accepting interest at the rate of 4-1/2% instead of at th.e 5% contract rate. These advantages to the borrower, and increased wages and opportunities for employment through advancement of the national economy, created a marked decrease in delinquencies and by June 30, 1941, 96. 5% of all accounts were in satisfactory liquidating status. PROPERTY MANAGEMENT - Approximately 253, 000 authorizations for foreclosure were issued, of which 201, 942 were processed to foreclosure, the Corporation acquiring 198,141 properties. 74 additional properties were acquired, bringing total acquisitions to 198, 215, of which number 198, 200 were sold and 15 rendered worthless by flood, tornado, or other disaster. Properties acquired by the Corporation were taken under control of a Property Management Division in Regional Offices. Peak periods of property acquisitions were in 1937, 1938 and 1939, when acquisitions amounted to 39, 534, 55,190 and 41,743,respectively. Peak sales periods were 1939, 1940, 1941 and 1942 when sales numbered 37, 771, 49, 716, 34,745 and 30, 857, respectively. The peak point in property management operation involved more than 103, 000 properties, including more than 20, 000 in process of acquiring title. 3000 contract management and sales brokers were engaged for the purpose of collecting rents, maintenance, m?Tiagf»m«nif and sale of properties. Rents collected amounted to $138, 645, 668.78 while expenses were $112, 826, 733.45, including $ 13, 396, 904.32 paid for rental commissions. Net operating income from management and rentals was $25, 818, 935.33. The original amount of loans on acquired properties was $797, 061, 136. 55; additions and credits increased the capital value to $1, 025, 921, 422.11. These properties were sold for $737, 755, 535.47; after deducting sales expense of $48, 410, 154. 03 the loss on properties sold was $336, 548, 215. 74. Appraisal and ReconrtitTonfng - Appraisals were made by salaried and approved fee appraisers. The Ccrparaitiam tmidleirtaak a -wast m-service program for training and qualifying appraisers ami sMejr ^5™^^^l^a^l examination 1300 qualified for positions as salaried apparaiseirs ami 27CD® were approved as qualified fee appraisers. By June 30, 1934, 5,172, S03 gffimTTTisaTig were concluded. RecomiEiftiomng was comxtaettedifoyttfie lfo»»«)iri«Tfifflfi[T«Tm^g Section in Regional Offices where plans, -"speoiriifraiii MM*^. amj cmstt estimates were developed; the r e w conditioning work was performed under contracts, after competitive bidding, and supervised and controlled by the Corporation's salaried and fee personnel. More than 867, 000 reconditioning contracts were entered into. ACCELERATION OF PAYMENTS - During 1944 the mortgage portfolio of 255 accounts in Hawaii was sold. A premium of $2, 623. 24 was received. In March 1948 the Corporation initiated two programs to accelerate maturity of accounts, planned as follows: (a) home owners with loan balances up to $300 were urged by letter to pay their accounts in full; and (b) where aggregate loan balances within a State were less than $1, 000, 000, sales of accounts, after informal bidding, were to financial institutions in localities served by such institutions. In June 1949 a further program was inaugurated for the sale of the remaining loan accounts by public offering on a state-wide basis and, generally, where the aggregate of loan balances exceeded $1, 000, 000. As of June 30, 1949, the Corporation's loan portfolio included 201, 338 accounts with balances of $319, 342, 497.17. Of these 53, 732 were paid in full during course of regular operations; 141, 869 were delivered to assignees under state-wide contracts, and 5, 737 delivered to other assignees. Premiums were received under 27 of the state-wide contracts; under two contracts loans were sold at par, and in Maine and Puerto Rico the loans were disposed of at a discount after no bids were received at par. Premiums amounted to $2, 239, 025. 87 and discounts $ 19, 533. 97. Including premium from the sale of Hawaii loans ($2, 623. 24) the net over-all premium from sale of all accounts totaled $2, 222,115.14. INCOME AND EXPENSE - The gross income of the Corporation was $1,417, 134,829.51 of which $1,192,016,622. 53 was interest received on loans to borrowers and $74, 380, 281. 62 from investments. Expenses aggregating $1, 065, 052, 680. 77 included the larger items of bond interest of $655,209,292.74 and employees salaries of $ 224, 752, 775. 25. Net income before losses was $352,082, 148.74. LOSSES - RESERVES - The Corporation provided a reserve for losses on mortgage loans, interest and property, fidelity and casualties, fire and other hazards amounting to $351, 990, 459. 06. Losses charged to this reserve were $337, 893, 825. 16, leaving an excess reserve of $14, 096, 633. 90 credited to surplus. PAYMENTS INTO THE TREASURY OF THE UNITED STATES - SURPLUS - By June 1949 the cumulative surplus or net earnings was $1, 468,117. 82; this was increased to $14, 065, 441. 76 at June 30, 1951. By November 30, 1951 the surplus was $ 14, 068, 588. 64. Pursuant to the Independent Offices Appropriation Act, 1952, $75, 000 of these surplus funds were made available to the Home Loan Bank Board to take care of such matters as may arise following the close of the Corporation's operations. A total of $ 13, 993, 588. 64 of the cumulative surplus funds of the Corporation has been paid into the Treasury of the United States. These payments were in May 1951 - $13, 800, 000, and in December 1951 - $193, 588. 64, thus accounting for the Corporation's net earnings of $14, 068, 588. 64. vx Final Report to The Congress of The United States Relating to the Operations, Realization, and Liquidation of The Home Owners1 Loan Corporation Introduction This report covers the operations and liquidation of the Home Owners1 Loan Corporation. It summarizes and reviews the cumulative results of operation to June 30, 1951 from the date of inception, June 14, 1933, when the Corporation was created by the Federal Home Loan Bank Board pursuant to the authorization and direction therefor contained in the Home Owners' Loan Act of 1933, approved June 13, 1933. All assets of the Corporation have been realized. Its bond issues have been called or have matured and all have been redeemed except a relatively small amount of called or matured outstanding bonds for which funds for the r e demption thereof have been deposited in the Treasury of the United States. Its capital stock has been retired by repurchase at par value from the Secretary of the Treasury and the amount thereof has been paid into the Treasury of the United States and the receipts for the capital stock have been canceled. Its surplus or accumulated funds have been paid into the Treasury of the United States. The prime purpose for which Home Owners' Loan Corporation was created is succinctly stated in the title of the Home Owners' Loan Act, viz., "An Act To provide emergency relief with respect to home mortgage indebtedness, to refinance home mortgages, to extend relief to the owners of homes occupied by them and who are unable to amortize their debt elsewhere, ***, and for other purposes. " The scope of the authority of the Corporation to provide such emergency relief is covered by sub-sections (d), (e), (f), (g) and (m) of Section 4 of the Act, under which the Corporation was authorized for a period of three years after June 13, 1933, the date of enactment of the Act, to acquire and carry, as first liens, distressed home mortgages and other obligations and liens in existence on the date of the Act which could not be financed otherwise and which were secured by real estate, held in fee simple or on a leasehold under a long-term lease, upon which there was a dwelling for not more than four families used by the owner as his home or held by him as a homestead and having a value not exceeding $20, 000. 00. The liens so acquired were r e quired to be secured by duly recorded home mortgages amortized by monthly payments sufficient to retire the interest and principal of the loans within a period of 15 years. Quarterly, semiannual or annual payments were permissible, in the judgment of the Corporation. The "Mead -Barry Act, " approved August 11, 1939, authorized the Corporation in its judgment to extend the time for payment of any delinquent installment, or to extend and revise the terms of any mortgage to provide for amortization by monthly payments within a maximum period of 25 years instead of the original maximum of 15 years. This change was not effective until more than three years after expiration of authority for the making of the original loans. In addition to the foregoing general limitations, the Act conditioned the types of loans which the Corporation could make, e. g.: (Section 4(d) Loans) Where the lien holder would accept the Corporation's bonds in exchange for his lien, the loan could be up to 80% of the Corporation's appraised value of the real estate, but in no case in excess of $ 14, 000. 00. The amount of the loan in such case would include the face value of the bonds plus accrued interest and cash advances to pay taxes and assessments, on the real estate, to provide necessary maintenance and repairs, and to meet the incidental expenses of the transaction including not in excess of $50 to the lien holder as the difference between the face value of the bonds plus accrued interest and the purchase price of the mortgage, obligation or lien. The interest charge on loans of this type would be at a rate not exceeding five per centum per annum on the unpaid balance of the obligation; (Section 4(f) Loans) Where the lien holder would not accept the Corporation's bonds in exchange for his lien and the Corporation found that the home owner could not obtain a loan from ordinary lending agencies, the loan could be up to 40% of the Corporation's appraised value of the real estate. The amount of the loan in such cases would include the amount of cash, advanced to the home owner as the purchase price of the mortgage, obligation or lien plus cash advances to pay taxes and assessments on the real estate, to provide necessary maintenance and repairs, and to meet the incidental expenses of the transaction. The interest charge on such loans would be at a rate not exceeding six per centum per annum on the unpaid balance of the obligation; (Section 4(e) Loans) Where the property was not otherwise encumbered, loans in cash could be made up to 50% of the Corporation's appraised value of the real estate to pay taxes and assessments, to provide necessary maintenance and repairs, and to meet the incidental expenses of the transaction. The interest charge on such loans would be at a rate not exceeding five per centum per annum on the unpaid balance of the obligation; (Section 4(g) Loans) The Corporation was authorized to exchange bonds and to advance cash to redeem or recover homes lost by the owners by foreclosure or forced sale by a trustee under a deed of trust or under power of attorney, or by voluntary surrender to the mortgagee subsequent to January 1, 1930. In such cases, the loan could be up to 80% of the Corporation's appraised value of the real estate, but in no case in excess of $14, 000. 00. The amount of the loan would include the face value of the bonds exchanged to the title holder for his investment, plus accrued interest on the bonds and cash advances to pay taxes and assessments on the real estate, to provide necessary maintenance and repairs, and to meet the incidental expenses of the transaction including not in excess of $ 50 to the title holder as the difference between the face value of the bonds plus accrued interest and the purchase price of the title holder's investment. The interest charge on loans of • this type would be at a rate not exceeding five per centum per annum on the unpaid balance of the obligation; (Section 4(m) Advances) In all cases where the Corporation was authorized to advance cash to provide for necessary maintenance and to make necessary r e pairs it was further authorized to advance cash or exchange bonds for the rehabilitation, modernization, rebuilding, and enlargement of the homes financed; and in all cases where the Corporation had acquired a home mortgage or other obligation or lien it also was further authorized to advance cash or exchange bonds to provide for the maintenance, repair, rehabilitation, modernization, rebuilding, and enlargement of. the homes financed and to take an additional lien, mortgage, or conveyance to secure such additional advance or to take a new home mortgage for the whole indebtedness. The total indebtedness, including Section 4(m) advances, could not exceed the respective amounts or percentages of value of the real estate prescribed for the various types of loans authorized by the Act. The authority for -2 - these advances was not included in the original Act but was added thereto by an amendment approved April 27, 1934 together with the provision that not to exceed $200, 000, 000 (subsequently increased to $400, 000, 000) of the proceeds derived, from the sale of bonds of the Corporation could be used for such advances. The following schedule shows the number of loan accounts and the amount of original loans acquired during the three-year period, June 13, 1933 to June 12, 1936, when the Corporation, under the aforenoted provisions of the Act, was authorized to acquire such loans. Sec. "Sec. Sec. Sec. 4(d) loans 4(e) loans 4(f) loans 4(m) loans Number of Loan Accounts Amount of Original Loans 1, 006, 516 8, 991 2,314 (*) $3,080,840,545 6,477,280 3, 184, 826 2, 948, 670 1,017, 821 $3,093,451,321 * Supplemental loans on 8590 original loans included in the other classifications of loan accounts. The annual reports to the Congress submitted by the Federal Home Loan Bank Board, the Federal Home Loan Bank Commissioner, the Home Loan Bank Board, and the annual reports on the audit of the Home Owners' Loan Corporation, prepared by the Corporation Audits Division, General Accounting Office, and submitted by the Comptroller General, contain detailed information pertaining to the organization, policies, operations, working methods, and the liquidating activities of the Corporation, together with pertinent charts, schedules, and exhibits which are not presented in the same format in this report. - 3- PART I - HISTORY AND ORGANIZATION Creation and Purpose The Home Owners' Loan Act of 1933 authorized and directed the Federal Home Loan Bank Board to create a corporation to be known as the Home Owners' Loan Corporation, an instrumentality of the United States, with authority to sue and to be sued in any Federal or State court of competent jurisdiction. The Act specified that the Corporation would be under the direction of the Board and operated by it under bylaws, rules and regulations prescribed by the Board for the accomplishment of the purposes and intent of the Act. The Act directed the Board to determine the minimum amount of capital stock of the Corporation. It authorized an aggregate of $200, 000, 000 and specified that all of it be subscribed for by the Secretary of the Treasury on behalf of the United States, the stock ownership of the United States to be evidenced by receipts which the Corporation was directed to issue to the Secretary of the Treasury. The Corporation was authorized and directed to retire and cancel its capital stock as rapidly as its resources would permit and to pay into the Treasury of the United States the reasonable value thereof as determined by the Board. Capital Stock Authorized - $200, 000, 000 Receipt No. Date 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 6/20/33 9/13/33 10/11/33 10/26/33 11/6/33 11/22/33 12/22/33 1/5/34 1/20/34 2/6/34 2/27/34 3/21/34 4/3/34 4/27/34 5/5/34 5/17/34 6/18/34 6/27/34 7/17/34 8/7/34 Totals Issues Shares at $100 Par Number Amount 10,000 10,000 10,000 10,000 50, 000 50, 000 50, 000 50,000 50, 000 100,000 100, 000 100,000 100,000 100, 000 150,000 200, 000 200,000 200, 000 200,000 260, 000 2, 000, 000 $ 1, 000, 000 1, 000, 000 1, 000, 000 1, 000, 000 5, 000, 000 5, 000, 000 5, 000, 000 5, 000, 000 5, 000, 000 10,000,000 10, 000, 000 10,000,000 10, 000, 000 10,000,000 15,000,000 20, 000, 000 20, 000, 000 20, 000, 000 20, 000, 000 26, 000, 000 $200,000,000 Retirements Amount Paid Date 12/29/50 12/29/50 12/29/50 12/29/50 12/22/50 12/11/50 11/30/50 11/13/50 6/28/50 10/30/50 9/29/50 8/31/50 8/11/50 7/21/50 6/28/50 6/2/50 5/3/50 4/10/50 3/24/50 3/6/50 $ 1, 000, 000 1, 000, 000 1, 000, 000 1, 000, 000 5, 000, 000 5, 00.0, 000 5, 000, 000 5, 000, 000 5, 000, 000 10, 000, 000 10, 000, 000 10,000,000 10, 000, 000 10,000,000 15, 000,000 20, 000, 000 20, 000, 000 20, 000, 000 20, 000, 000 26, 000, 000 $200,000,000 The Act authorized the Corporation to issue bonds in an aggregate amount of $ 2, 000, 000, 000 bearing interest at a rate not in excess of 4 per centum per annum - 4- and unconditionally guaranteed as to interest only by the United States. The Corporation was authorized to sell its bonds to obtain funds for carrying out the purposes of the Act or to exchange them for home mortgages and other obligations and liens secured by real estate and falling within the purview and limitations of the Act. Amendments to the Act guaranteed bonds issued subsequent to April 27, 1934 as to principal and interest and increased the Corporation's bond authority to an aggregate of $4,750,000,000. The Congress thus having directed creation of the Home Owners' Loan Corporation and having authorized the means and manner for its initial financing, the Board immediately after approval on June 13, 1933 of the HOL Act of 1933 took the necessary steps to bring the Corporation into being and start functioning. On June 14, 1933 the Federal Home Loan Bank Board chartered the Home Owners' Loan Corporation capitalized at $200, 000, 000 and with authority to issue bonds in accordance with the terms of the Act. The charter established the home offices in Washington, D. C., authorized establishment of other offices or agencies as might be necessary, and extended full power to perform all functions authorized by the Act, including the authority to sue or be sued and the usual powers and immunities pertinent to corporate instrumentalities of the United States. Likewise, the first bylaws of the Corporation were adopted on June 14, 1933 placing its direction in a Board of Directors, which in accordance with the Act was composed of the members of the Federal Home Loan Bank Board. The bylaws, among other things, specified the titles of officers of the Corporation, provided for appointment of such officers by election of and for terms at the pleasure of the Board, defined the authority and responsibility of such officers, designated the authority through which employment of necessary personnel, contracts of the Corporation and other necessary expenses would be approved, allowed and disbursed. The initial loan regulations of the Corporation were adopted by the Board on June 15, 1933 and numerous forms necessary for the control, recordation, facilitation, etc. of the ensuing operations of the Corporation were approved. Among the officers of the Corporation designated in the bylaws for appointment by the Board were State Managers, one for each State. The District of Columbia and Hawaii were accorded State status for management and operational purposes. During 1934 Puerto Rico was accorded State status. There thus was required initial appointment of 51 officers of State Manager status. The first such appointments were approved on June 22, 1933. By the end of June 1933, 18 State Managers had been appointed. During July 1933 appointment of 28 additional State Managers was approved. The appointment of State Managers for all of the States and the District of Columbia was completed by August 10, 1933. The manager for Hawaii was appointed during October 1933 and for Puerto Rico during October 1934. In the meantime, coincident with adoption of the bylaws or shortly thereafter, the Board had appointed a General Manager and the other executive officers of the Corporation, together with subordinate employees necessary to initiate the functioning of the Corporation. Thus, within three months after the chartering of the Corporation the cadre around which it was to be built had been established. Its organization had taken definite form and it had begun to function toward accomplishment of the purposes for which it was created. - 5- Organization Pursuant to the provisions of the Home Owners' Loan Act of 1933, the Board of Directors of the Home Owners' Loan Corporation was composed of the five members of the Federal Home Loan Bank Board. Reorganization Plan No. 1 of 1939, effective July .1, 1939, created a Federal Loan Agency, headed by an Administrator, to supervise the administration and to be responsible' for the coordination of the functions and activities of several Government agencies, including the Federal Home Loan Bank Board and the Home Owners' Loan Corporation. Executive Order No. 9070, dated February 24, 1942, created a National Housing Agency, headed by an Administrator, and consolidated the functions, duties and powers of a number of agencies into the National Housing Agency. A unit to be known as the Federal Home Loan Bank Administration, headed by a Commissioner, was ordered to administer the functions, powers, and duties of the Federal Home Loan Bank Board and its members. By the same Executive Order, the Chairman of the Federal Home Loan Bank Board became the Federal Home Loan Bank Commissioner, the offices of the other members of the Board were vacated, and the functions, powers, and duties of the Home Owners' Loan Corporation and of the other constituent units of the Federal Home Loan Bank Board were ordered to be administered by the Federal Home Loan Bank Administration. Section 17 of Executive Order No. 9070 provided that it would he effective as of the date of the order and remain in force and effect so long as Title I of the First War Powers Act, 1941, remains in force. . Reorganization Plan No. 3 of 1947, effective July 27, 1947, created a permanent Housing and Home Finance Agency, headed by an Administrator with responsibility for general supervision and coordination of the functions of the constituent agencies affected by the Plan. Among these agencies is the Home Loan Bank Board, consisting of three members appointed by the President, by and with the advice and consent of the Senate. Under the Plan, there were transferred to the Home Loan Bank Board the functions (1) of the Federal Home Loan Bank Board, (2) of the Board of Directors of the Home Owners' Loan Corporation, (3) of the Board of Trustees of the Federal Savings and Loan Insurance Corporation, (4) of any member or members of any of said Boards, and (5) with respect to the dissolution of the United States Housing Corporation. The bylaws of the Corporation, consistent with the Home Owners' Loan Act of 1933, as amended, placed the direction of the Corporation in its Board of Directors under the bylaws, as amended from time to time, and under the rules and regulations prescribed by the Board pursuant to the Act. The bylaws, as amended, provided that the general officers of the Corporation would consist of a General Manager, Secretary, General Counsel, Comptroller, Treasurer, and an Auditor. Provision also was made for appointment of deputy, assistant, or associate general officers and of such additional general officers as might be deemed necessary. There also was provision for the appointment of Regional and Assistant Regional Managers, Counsel, and Treasurers, and for State and Assistant State Managers and Counsel. There, thus, was provided a well integrated flexible operating organizational structure under direction of the Board. The principal office (Home Office) of the Corporation initially at Washington, D. C. was removed to New York, N. Y. in September 1941, in order to free office space in Washington, D. C. for housing the - 6 - then rapidly expanding emergency defense agencies. The Home Office remained in New York, N. Y. until May 31, 1951, when it was closed, after final disposition of its loans, realization of its assets, and release of its remaining employees. Executive direction of the Corporation was exercised from the Home Office where all of the policies of the Corporation were determined, all corporate action was authorized, and control maintained of accounts, finances, operations, employment, budget, etc. For administrative purposes, the United States was divided into six National districts, each embracing a number of contiguous States, and each supervised by an Assistant General Manager at the Home Office of the Corporation. During 1934, eleven Regional Offices were established embracing, in all, the 48 States, the District of Columbia and the Territories of Hawaii and Puerto Rico. Each Region embraced two or more contiguous States. Two Regions were embraced within the boundaries of each of five of the national districts. The eleventh Region embraced all of the sixth national district. In establishing the Regionr and the city in which any Regional Office was located, consideration was given to the volume of business, geographical location and size of the States, convenience and facility for handling loans, location of Federal Reserve Bank facilities, and efficiency to be gained by closer contact with and supervision and control of field office operations. Each Region was identified by the numerical designation of the national district within which it fell and by an alphabetical suffix in those cases where the national district embraced two Regions. The Regional Manager and other Regional executives, under executive direction and supervision from the Home Office of the Corporation, had immediate direction of and responsibility for operation of the Regional Office and the activities within the Region conducted from the Regional Office. The State Offices and State organizations within a Region were under general supervision of and direction by the Regional Office and relationships between the State Office and the Home Office of the Corporation were channeled through the Regional Office. The following schedule shows the identification and location of the Regional Offices. Region No. Regional Office Region No. Regional Office 1-A Boston, Mass. 4-A Chicago, 111. 1-B New York, N. Y. 4-B Detroit, Mich. 2-A Baltimore, Md. 5-A Omaha, Neb. 2-B Cincinnati, Ohio 5-B Dallas, Texas 3-A Atlanta, Ga. 6 San Francisco, Calif. 3-B Memphis, Tenn. Regional offices were maintained only so long as the number of active open loan accounts and other work-load factors were great enough to sustain an efficient economical operation. As those conditions diminished in any Region, the activities thereof were transferred to and consolidated with those of another Region. — 1~ Boston closed into ti it Baltimore 11 " Detroit 11 " Atlanta II II Cincinnati " " Omaha it II San Francisco " " Memphis it II Dallas it II Chicago " " New York New York ii it Chicago New York it II Chicago it New York n II ti II Home Office October 1938 April 1942 May 1942 October 1945 September 1946 September 1946 December 1946 December 1946 February 1947 October 1947 December 1947 Initially, a State Office was established in each of the 48 States, in the District of Columbia and in the Territories of Hawaii and Puerto Rico. This was accomplished within 60 days after June 13, 1933 for all except Hawaii and Puerto Rico where the Territorial Offices were established during October 1933 and October 1934 respectively. The State Offices in six States (Maine, Nebraska, New Jersey, Oklahoma, and Wisconsin) were removed from the cities in which originally established to cities where, the loan potential was greater and which embraced the greatest financial and business facilities in the State. The State Offices for California and Texas were abolished and in lieu thereof Division Offices were established. These were autonomous offices and were accorded all of the authorities and responsibilities of State Offices. Two such offices were established in California and three in Texas. There thus was a total of 54 offices with State Office status, 46 State Offices, 5 Autonomous Division or Branch Offices, and 3 Territorial Offices including the District of Columbia Office as follows: 1. .2. 3. 4. 5. 6. 7. 8, 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. State Offices Alabama—Birmingham Arizona--Phoenix Arkansas—Little Rock California: So. Calif. Div.--Los Angeles No. Calif. Div. --San Francisco Colorado—Denver Connecticut--New Haven Delaware—Wilmington Florida--Jacksonville Ge orgia- -Atlanta Idaho--Boise Illinois--Chicago Indiana- -Indianapolis Iowa—Des Moines Kansas--Topeka Kentucky—Louisville Louisiana—New Orleans Maine--Portland Maryland—Baltimore State Offices New Hampshire—Manchester New Jersey--Newark New Mexico—Albuquerque New York—New York City N. Carolina—Greensboro N. Dakota--Fargo Ohio—Columbus Oklahoma--Oklahoma City Oregon--Portland Pennsylvania--Philadelphia Rhode Island--Providence S. Carolina--Columbia S. Dakota—Sioux Falls Tennessee--Nashville Texas: Div. No. 1—Dallas Div. No. 2—Houston Div. No. 3—San Antonio 42. Utah—Salt Lake City 43. Vermont--Rutland 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. - 8- State Offices (con't.) 19. 20. 21. 22. 23. 24. 25. 26. State Offices (con't.) 44. 45. 46. 47. 48. 49. 50. 51. Massachusetts—Boston Michigan--Detroit Minnesota--St. Paul Mississippi--Jackson Missouri—St. Louis Montana—Great Falls Nebraska—Omaha Nevada—Reno Virginia—Richmond Washington--Seattle West Virginia—Charleston Wisconsin—Milwaukee Wyoming—Casper Dist. of Columbia—Washington Hawaii—Honolulu Puerto Rico—San Juan State Managers were appointed and State Offices were established and in operation about a year to a year and a half prior to establishment of Regional Offices, during which period State Managers and other State Office executives were under executive direction and supervision from the Home Office. Coincident with establishment of a Regional Office, the Regional Manager and his staff became responsible for executive direction and supervision of the State Manager and State executives of the various' States within the Region and the relationships between the State Offices and the Home Office thereafter channeled through the Regional Office. The State Manager exercised immediate control, direction, and supervision of the State Office and its. activities and was responsible for executive direction and supervision of the District, Sub-District, Branch and all other offices within the State subordinate to the State Office. The peak number of offices maintained by the Corpbratidn was reached in November 1934 when 458 offices were operating in the field, including 11 Regional Offices, 46 State Offices, 5 Autonomous Division Offices, 3 Territorial Offices, including the District of Columbia, 208 District Offices, and 185 Sub-District and Branch Offices. At the same time the Corporation reached its peak of employment with a personnel complement of 20, 811, of whom 2, 762 were employed in the Home Office and 18, 049 in the field offices. The number of offices in operation remained relatively constant during and for a short time after the three-year loan refinancing period. However, as availability of eligible loan applications diminished. District Offices were abolished or reduced in status to Sub-District or Branch Offices which then began functioning as Loan Service Offices or stations for the servicing of accounts and in some instances with Collection Office facilities for receipt of amortization and other payments tendered in person by the borrower. Thus, at June 30, 1937 there were 410 field offices in operation, including 11 Regional Offices, 54 State, Divisional and Territorial Offices, 95 District Offices and 250 Sub-District, Branch, etc. Offices. As in the case of the Regional Offices heretofore commented on. State Offices, District Offices and the other subordinate field offices were maintained only so long as they were required for an efficient and economical operation. As the need diminished, the offices were closed. The following chart indicates the rapidity of such closings after June 1937: - 9- Offices 1937 1938 1939 1940 1941 1942 Regional State, etc. District Sub-District, etc. Total 11 11 10 10 10 8 54 53 52 33 21 11 95 56 4 1 250 242 110 54 47 39 410 362 176 98 78 58 Offices 1943 1944 1945 1946 1947 1948 Regional State, etc. District Sub-District, etc. Total 8 8 8 7 2 - - - - - - - - - - - - 19 8 5 5 1 27 16 13 12 - 3 . None The offices of the Corporation were staffed with a nucleus of locally hired competent employees as rapidly as possible after initial approval and appointment of the managing executives and establishment of the offices. Thereafter, the force was expanded,, trained, and reduced relative to the activities and work-load. As heretofore stated the peak number of 20, 811 employees was reached during November 1934. The following table indicates, by fiscal years, the average employment during the fiscal year and the gross salaries and compensation. Fiscal Year Average Employment (Man-year basis) Salaries 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 7,766.6 19,522.4 19,054.8 15,643.2 14, 476. 5 11,510.6 10,423.3 8, 599.4 6,304.4 4,210.9 3,018.1 2,021.5 1,515.3 1,078.8 683.7 501.0 475.7 212.6 $11,469,365 27,870,181 29,699,803 25,354,930 24,796,180 21,279,026 19,676,184 16, 622,982 12,766,473 9,825,978 7, 598, 528 5,167,463 3, 901, 783 3, 060, 837 1,936,686 1,605,574 1,499,100 855,079 All of the then remaining active employees of the Corporation were separated under the reduction in force procedures or by transfer to other agencies, by resignation, or by retirement during fiscal year 1951. - 10 - The accompanying organizational chart depicts the principal lines of authority descending from the Board through the General Manager and Assistant General Managers to the Regional and State organizations in the field. It also depicts major staff and operating departments or divisions under the Board, the General Manager, the Regional Managers and the State Managers. - 11 - C O R P O R A T I O N LOAN O W N E R S H O M E Compoalt Functional Organization Chart FEDERAL HOME LOAK BANK BOARD ( J a m 13. 1933 - February 2 8 , I » W ) FEDERAL HOME LOAM BARK ADHIHISTRATIOK (February 2H, I 9 « 2 - J u l y 26, 1947) HOME LOAN BANK HOARD ( J u l y 17, l«»7) Financial Adviser Public Relation Research and Stitlatlca Budget Secretary Personnel General Counsel Auditor HOME OHMERS' IO»» CORPORATION Created pursuant to Home Omars' Loan Act of IS33, approved June 13, 1933, and as emended. 80ARD OF DIRECTORS June 13, 1933 to Fetruary 23, 1942 - The wallers of the Federal KOM Lou Bank Beard <IU>.L.«tt of l » » i February 2», I9U to July 26, 1917 - Federal How Loan Bank Conlaaloner, Federal How Loan tank Administration (Executive Order No. 9070, February 21, I9W) July 27, 19*7 • The aeabers of t i n K m lean Bank Board (Reorganization Plan Do. 3 of 1917) General Counsel fienoral Manager Deputy General Hanacers (6) lean Service I I Assletsnteeneral| Hana8ers (6) | Auditor j Co.ptroller Property Hanegeaent Appraisal ( Reconditioning general Administration Regional rknaiers (II) Chief Accountant Treasurer 1 | Counsel 1 Loan Service 1 Property Hanegeaent Appraisal t 1 Reconditioning] Accountant Treasurer I Personnel I I Auditor State Manajers (51) (States-US, Autonomous DivisionsCalifornia 2 - Tiiaa 3, T e r r i torial 2 - Hawaii t Puerto Rico, end District of Colur.bl.-I) Counsel loan Service Property Management Appraisal Reconditioning Disbursing Officer Accountant Pereonnei District Hanagirs Counsel Fee Attorneys I Loan Closers T i t l e Insii rancel 1 Abstracting ting I I Local Appraisers Sub-Diatrict and Branch Managera -12 - I I | | Fee I t r a M f Insurance! Appraisers | | Credit | I PART II - FUNCTIONS AND OPERATIONS Functions The primary function of the Corporation was to provide direct and immediate relief for individual distressed home owners. This was to be accomplished within a period of three years ending June 12, 1936 and in compliance with the Home Owners* Loan Act of 1933, as amended. To be eligible for consideration for such relief, all applications for refinancing home properties were subjected to the following legal tests: (1) The property must be real estate in fee simple or held under a lease for not less than ninety-nine years, which was renewable, or held under a lease having not less than fifty years to run from the date the mortgage was executed. (2) The property must have located thereon a dwelling or dwellings for not more than four families. (3) The property must be used by the owner as his home or held by him as his homestead. (4) The property value must not exceed $20, 000 as appraised by the-Corporation. (5) No loan could be made for an amount exceeding $ 14, 000, or eighty per ' centum of the Corporation's appraisal of the property offered, whichever the smaller. (6) The applicant must have been in involuntary default on June 13, 1933 with respect to the indebtedness on his home and unable to carry or r e fund his mortgage indebtedness except where it was specifically shown to the satisfaction of the Corporation that a default after June 13, 1933 was due to unemployment or economic conditions or misfortune beyond the control of the applicant. The Corporation was authorized to perform other important functions unrelated to its basic lending activities. Title IV of the National Housing Act, approved June 27, 1934, created the Federal Savings and Loan Insurance Corporation, a constituent unit of the Federal Home Loan Bank Board, and directed that the total amount of its capital stock of $100, 000, 000 be subscribed for by the Home Owners' Loan Corporation and payment made therefore in bonds of the Home Owners1 Loan Corporation. The Act specified that the Home Owners' Loan Corporation would be entitled to receive dividends on such stock out of net earnings of the Insurance Corporation at a rate equal to the interest on the aforesaid bonds, the dividends to be cumulative. Accordingly HOLC acquired the capital stock of FS&LIC by issuance of $100, 000, 000 face amount of its Series A, 3 per cent bonds. FS&LIC paid dividends of $3, 035, 326. 09, at the rate of 3 per cent per annum, through June 30, 1935. As of June 30, 1948, the capital stock of FS&LIC was transferred to the Secretary of the Treasury pursuant to the following provisions of the Government Corpora - 13 - tions Appropriation Act, 1949: "*** all right, title, and interest of the Home Owners' Loan Corporation in the capital stock of the Federal Savings and Loan Insurance Corporation is hereby transferred to the Secretary of the Treasury and the Secretary of the Treasury is authorized and directed to cancel bonds of the Home Owners' Loan Corporation in an amount equal to the par value of the stock of the Federal Savings and Loan Insurance Corporation so transferred, plus accrued dividends thereon which notwithstanding any other provision of law, shall be computed at a rate approximating the average interest cost incurred by the Home Owners' Loan Corporation on its total borrowings during each r e spective fiscal year." Accrued dividends, under the above provisions, were determined to be $25, 181, 749. 98 and the Secretary of the Treasury canceled HOLC bonds in the amount of $125,181, 749. 98, accrued dividends plus $100, 000, 000 par value of FS&LIC capital stock, thus closing out the investment of Home Owners' Loan Corporation. Section 4(n), added to the Home Owners' Loan Act of 1933, as amended, by an amendment approved May 28, 1935, authorized the Corporation to purchase fullpaid-income shares of Federal Savings and Loan Associations after funds available to the Secretary of the Treasury for that purpose had been exhausted. Purchases by the Corporation were subject to the same terms and conditions as were applicable by law to such purchases by the Secretary of the Treasury and the total amount of shares in any one association held by the Corporation and the Secretary could not exceed the total amount which the Secretary of the Treasury was authorized to hold in any one association. This amendment also authorized the Corporation to purchase shares, certificates of deposit, and investment certificates in any institution which was a member of a Federal. Home Loan Bank or whose accounts were insured under title IV of the National Housing Act. The amendment further authorized $300, 000, 000 of the total authorized bond issue of the Corporation available for these investments, without discrimination in favor of Federally chartered associations. The Corporation's total capital investment, under the foregoing provisions, was $223, 856, 710, of which $223, 611, 710 was recovered through timely repurchases of the Corporation's investments by the institutions and $214, 541. 08 was received as the Corporation's pro rata share of liquidating dividends paid out by the receivers or conservators of distressed institutions. A loss of $30,458. 92 was charged off. In addition to the aforenoted liquidating dividends, the Corporation received liquidating dividends of $31, 080.61 in excess of its investment in three distressed institutions, which were treated as earned dividends on investments in savings and loan associations. - 14 - Investments - Savings and Loan Associations Federally Chartered (•deduct) Gross Purchases Conversions: State to Federal Federal to State Total $171,339,800.00 $52,516,910.00 $223,856,710.00 7, 165, 900. 00 105,000.00* Total 7,165, 900. 00* 105.000.00 $178,400,700.00 $45,456,010.00 $223, 856, 710. 00 Liquidation: Repurchases Net Liquidating Dividends Loss Charged Off Total State Chartered (*deducfl $178, 155, 700. 00 $45, 456, 010. 00 $223, 611, 710. 00 214,541.08 214,541.08 30, 458. 92 30, 458. 92 1 _ (2) $178, 400, 700. 00 $45,456,010.00 $223,856,710.00 Dividends - Savings and Loan Associations Federal State Total From Active Associations $ 35, 939, 995. 83 $ 8, 774, 402. 59 $ 44, 714, 398. 42 Liquidating Dividends in excess of capital investment received from receivers or conservators 30, 518. 70 561.91 (1) 31,080.61 Total $ 35, 970, 514. 53 $ 8,774,964.50 $ 44, 745, 479. 03 (1) Excess dividends from liquidation or conservation of three associations $ 31,080.61 (2) Loss on capital investment in one liquidated association $ 30,458.92 Net gain from liquidation or conservation of associations $ 621.69 Executive Order No. 9070, dated February 24, 1942, placed certain functions, powers, and duties relating to defense housing in the National Housing Agency. Among these were those pertinent to the Federal Works Administrator under the act of October 14, 1940, the Lanham Act, as amended. The Administrator, National Housing Agency, designated and directed Home Owners1 Loan Corporation, effective October 1, 1942, to act for the National Housing Agency, in conversion by the Government under the Lanham Act, as amended, of existing structures into accommodations for war workers in localities in which the war need for such accomodations had been determined by the Office of the Administrator and in accordance with - 15 - specific assignments by the Office of the Administrator. Lanham Act funds were made available to the Corporation. Upon receipt of assignments underthie program, Home Owners'Loan Corporation acting for the National Housing Agency, determined what properties could be converted at reasonable cost, acquired eligible properties for the United States of America by lease, converted such leased properties, and operated and managed them. The major portion of the leased properties had been converted and the dwelling units thus made available were rented or were available for rental occupancy by the close of fiscal year 1944. As of close of business July 31, 1944 the responsibility for operation and management of converted properties and all records pertaining thereto were transferred to the Federal Public Housing Authority. Home Owners' Loan Corporation continued processing of the uncompleted property conversions, the costs of which thereafter were certified for disbursement by Federal Public Housing Authority from funds made available by the Administrator, National Housing Agency. Upon completion of each such conversion and certification by Home Owners' Loan Corporation as to availability of the dwelling units therein for occupancy, Federal Public Housing Authority became responsible for its operation and management. All of the assigned conversions were completed by June 30, 1945 and effective July 1, 1945 Federal Public Housing Authority was designated and directed to process and conduct any further conversions in addition to the operating and management activities previously transferred to it. , The following tabulation summarizes the results of the publicly financed Homes Use Conversion Program conducted by Home Owners' Loan Corporation acting for the National Housing Agency: No. of cases assigned to HOLC by NHA No. of preliminary reconditioning inspections made by HOLC No. of cases rejected after inspection No. of cases submitted for negotiation of lease No. of negotiable lease cases rejected because of legal or other objection No. of cases where leases were negotiated and conversion contracts awarded and completed Direct cost of conversions: Original and supplemental contracts Other direct conversion costs Total Less contributions by Lessors 23, 831 21, 127 6,411 17,420 8, 554 8,866 $78, 051,336 3, 715,602 $81,766,938 1,637,418 $80,129, 520 No. of dwelling units made available Average cost per dwelling unit 47( 811 $ - 16 - \t 676 Operations As tersely defined in the title of the Home Owners1 Loan Act of 1933, as amended, the prime purpose for which Home Owners' Loan Corporation was created and the principal operations it performed were to provide emergency relief with respect to home mortgage indebtedness, to refinance home mortgages, and to extend relief to the owners of homes occupied by them and who were unable to amortize their debt elsewhere. Broadly, these operations involved making loans secured by mortgages to distressed home owners, servicing and collection of loans, foreclosure and acquisition of the security property where necessary to protect the Government's interest, and management and sale of properties acquired through foreclosure and other processes. Lending Operations The time during which the Corporation was authorized to acquire distressed home mortgages and other obligations and liens, in existence on the date (June 13, 1933) of the Act and secured by real estate, was the three year period, June 13, 1933 to June 12, 1936. The date until which distressed home owners could file applications for such loans was fixed as June 27, 1935 by an amendment of the HOL Act of 1933, as amended, approved May 28, 1935 which in pertinent part amended Section 4(c) as follows: "In order to provide for applications heretofore filed, for applications filed within thirty days after this amendment takes effect, and for carrying out the other purposes of this section, the Corporation is authorized to issue bonds in an aggregate amount not to exceed $4, 750, 000, 000 ***"; More than 1, 886, 000 applications for loans aggregating over $6,173,000,000 were filed with the Corporation during the approximate two-year period for filing such applications. Approximately 46 per cent of the applications were ineligible under the Act and regulations and were rejected. Eligible applications were processed during the three-year loan closing period and resulted in a total of 1,026,411 loans (original and supplemental) to 1, 017, 821 distressed home owners whose accounts were set up on the books of the Corporation. Subsequent divisions of security between home owners and other parties acceptable to the Corporation in 127 cases increased the number of original borrowers' loan accounts from 1, 017, 821 to 1, 017, 948. The loan closing operations were conducted in the various State and District Offices under the State Manager, for the particular State, to whom was delegated full authority and responsibility for direction, supervision, and control of these operations and of all offices of the Corporation within the State. The State Manager was authorized to disburse by checks drawn on the Treasurer of the United States and to issue authorizations for delivery of bonds of the Home Owners' Loan Corporation in connection with the closing of loans. Rules and Regulations covering all phases of the lending authority, loan closing processes, office operations, etc., were approved by the Board, compiled in manual form, and distributed as a guide and reference for the State Manager and for all personnel under his jurisdiction. Standardized forms applicable in all States for the great majority of operations and processes were devised, approved and furnished to the State Manager and the use thereof required. The form of mortgage and note or bond and note were pertinent exceptions since they had to meet the legal requirements of the particular State. - 17 - District Offices functioned as branches of the State Office under an Assistant State Manager or a District Manager. Since these offices were located at strategic population centers in the State, applications for loans from home owners in the area usually were presented at the District Office in person. If not, they were routed to the pertinent District Office. Personal interviews were had with each applicant, wherever possible, to completely develop-eligibility of the application. Ineligible applications were rejected. Acceptable applications were recorded for control purposes, a confidential report requested from the mortgagee as to the status of his loan, a character report on the applicant was ordered from an approved credit reporting agency, and a preliminary appraisal of the property was performed and reported upon by an appraiser employed by the Corporation. Thereafter, if it still appeared that an eligible loan could be consummated, an independent appraisal was made by a fee appraiser and, if necessary repairs had been recommended or r e conditioning recommended, an inspection of the property was made and report rendered by a qualified employee of the Corporation, specifications were drawn, competitive bids requested, and the proposed repair or reconditioning contractor selected. At that point a review was made of all appraisals and a recommendation made as to the value of the property to be fixed by the Corporation. The entire file then was assembled and sent to the Loan Committee at the State Office. The Loan Committee consisted of the State Manager, State Appraiser, State Counsel and State Reconditioning Supervisor, or designated representatives thereof. The Loan Committee, after careful analysis of all of the material determined the eligibility of the applicant and the property, and fixed the value of the property as appraised by the Corporation, which then became its maximum loanable value. All interested parties were notified of rejection of any case found ineligible by the Loan Committee. Eligible cases were processed for negotiation with the mortgagee, determination of insurance requirements, unpaid taxes and assessments, outstanding tax liens, and title examination. These operations normally were conducted at the District Offices because of their proximity to the applicant, the mortgagee, the property, county and city public records, and taxing authorities. These activities were performed variously by salaried employees of the Corporation, fee attorneys, title insurance companies, abstractors, tax searchers, and title searchers, as local custom or. the exigencies or economy of the situation determined. When agreement was reached with the mortgagee respecting the amount of the applicant's indebtedness and the amount the mortgagee was agreeable to accept to liquidate the debt and after all title and other objections, defects or encumbrances had been cleared, except those which were to be cleared by disbursement from the loan, a closing date was set and the entire file forwarded to the State Office for preparation of the loan papers, settlement sheet, disbursement vouchers and checks, and authorization for delivery of Home Owners' Loan Corporation bonds. At this point, the loan was assigned the controlling numerical identification with which it thereafter was referenced through all Corporation records, public r e cordings, releases and other legal procedings. After the loan had been numbered, the loan papers prepared and disburse-; ments drawn, the loan file, including all necessary instruments, were forwarded from the State Office to the pertinent District Office for delivery to an approved fee attorney, or other authorized loan closer, who met with the applicant and the mortgagee; paid off the mortgagee, taking his acknowledgment of release - 18 - of interest; had the applicant execute the loan papers; paid off the taxes and other unpaid items included in the loan, taking receipts or releases as were appropriate; and, if not otherwise recorded, filed and paid for recording all releases and the Corporation's mortgage. The closed loan file was returned by the closer to the District Office where it was checked, approved and promptly forwarded to the State Office for re-check as to accuracy and completeness and for clearance of controls and reports prior to its having been forwarded to the Regional Office. The Manual.of Rules and Regulations of the Corporation provided a loan shall not be a closed loan until: (1) The title has been examined and found to be vested in fee simple or by proper leasehold in the applicant, free from any objection, defect or encumbrance, except eligible liens to be refunded by the Corporation, and the title has been approved. (2) A proper bond or note, payable to the Corporation, and the mortgage or deed of trust securing payment thereof have been executed and delivered by the applicant and such mortgage or deed of trust filed for record or recorded in the proper office and the filing or recording fee paid. (3) The title has been run down from date of preliminary examination to the date and hour the mortgage to the Corporation is lodged for record and found to be unchanged. (4) A proper release is of record or has been delivered to the closing agent for recording. (5) A bond authorization and/or cash for the amount of the loan is delivered to the record holders of the liens being refunded. The refunding of mortgages and liens held by receivers and conservators of institutions in liquidation involved a more complicated problem than in the case of operating institutions. The activities of receivers and conservators were limited by the Courts, the Comptroller of the Currency, and various State banking or other regulatory departments. Serious question was raised as to acceptability of Home Owners* Loan Corporation bonds in exchange for mortgages held by such institutions. Late in October 1933 the Financial Adviser to the Board was given responsibility for the organization of a Wholesale Department which would cope with the situation and negotiate with the regulatory authorities governing the institutions in legal custody. The Wholesale Department was formalized and its operations defined in January 1934. The purpose of its activities was to prevent foreclosures which otherwise might have been necessary in liquidating the assets of institutions in legal custody and to relieve distress by accelerating the return of funds to the depositors and creditors of such institutions. For purposes of the Corporation, the Board defined institutions in legal custody as comprising national banks in the custody of the Comptroller of the Currency; state banks in the custody of a properly authorized State department, or of a r e ceiver or other custodian duly appointed by a Court; building and loan associations and similar institutions in the custody of a State department, a Court Receiver, or other Court custodian; and mortgage companies and other mortgage loan institutions in the custody of a State Department or other custodian appointed by the Court. The - 19 - Comptroller of the Currency issued blanket authorization for acceptance of the Corporation's bonds in all cases where the claim of a national bank would be fully liquidated. Where the claim would not be liquidated without adjustment of the debt, authority to accept such adjustment had to be obtained from the Comptroller of the Currency. In dealing with receivers, conservators, agents or trustees, it was necessary in most cases to secure a Court order approving the refunding of the loan. As in the case of loans refunded to operating institutions and individuals, the Corporation's tests for eligibility and the regulations relating thereto were applicable to all loans handled by the Wholesale Department, excepting cases where home mortgages, other obligations and liens existed June 13, 1933, and the same identical debts remained owing but were secured by a new instrument or instruments owned by an institution in legal custody. The operations of the Wholesale Department were completed early in the year 1935. These operations extended to 6, 138 institutions which were in legal custody. During the approximate 18 months of the Wholesale Department's existence 137, 318 loans were closed in the aggregate amount of $389, 527, 917. 00, of which amount $340, 620, 596. 00 was paid to the institutions in legal custody. The loans closed by this Department (137, 318) represent approximately 13. 5% of all original loans closed. In addition to the benefits derived by home owners whose mortgages were refunded, substantial and immediate relief also was afforded the mortgagees who held the refunded mortgages. It is estimated that the amount disbursed in bonds and cash to mortgagees approximated 13% of the estimated total of the 1932 mortgage debt on one to four family non-farm homes. The following tabulation classifies the recipients of the $3, 093, 451, 321. 01 disbursed by Home Owners' Loan Corporation in bonds and cash for acquisition of mortgage loans during the three year period ending June 12, 1936: Disbursements (in millions of dollars) Commercial Banks Mutual Savings Banks Building and Loan Associations Insurance Companies Mortgage Finance Companies Estates, Trusts, etc. Individuals Taxes and Assessments Repairs and Reconditioning Miscellaneous Loan Expense Total amount of closed loans $ 525. 0 410. 0 770. 0 165.0 195.0 110.0 575.0 $2,750.0 230. 0 70. 0 43. 5 $3, 093. 5 The operations of the Corporation in large measure were effective in stopping the abnormal national trends of foreclosures which were occurring at the rate of 1, 000 per day. Liquidity of the institution and individual mortgagees was enhanced by the readily marketable bonds and cash they received in exchange for de - 20 - faulted mortgages. The payment of delinquent taxes, accrued in most cases for several years, relieved many sorely pressed and distressed communities. The mortgage indebtedness of many home owners was compromised and paid off in lesser amounts than they owed by concessions aggregating $200, 000, 000 which the Corporation was able to obtain for them from mortgage holders at the time of refinancing. All of this tended to and had a beneficial effect upon the national economy. The Corporation's mortgages were direct reduction mortgages amortized by monthly payments for the retirement of interest and principal and have become the national pattern for home financing mortgages. From time to time it has been estimated that the Corporation's borrowers saved a billion or more in interest—the difference between the amounts paid under the Corporation's mortgage interest rates and the rates charged in the previous first, second and third mortgages refinanced or compromised by the Corporation. Loan Service Operations Initially, closed loans were forwarded from the State Offices to the Home Office at Washington, D. C. where the accounts were set up and controlled. The loan files, loan accounts and related activities were transferred to the Regional Offices, as they were established during the last half of 1934, after .necessity for decentralization of these activities became apparent. Thereafter, the files of loans closed in each State were forwarded directly from the State Office to the pertinent Regional Office where the accounts were set up, controlled, and reviewed at regular interval's to ascertain the progress of liquidation of loan balances and selection of delinquent accounts for service by correspondence or by personal contact with the borrowers by field representatives. A Loan Service Division was established in each Regional Office and uniform servicing procedures were adopted and incorporated in the Corporation's Manual of Rules and Regulations. Personnel qualified or trained to conduct this operation were supplied to and operated from field offices under supervision of and direction of the Regional Loan Service Division. Service by correspondence was conducted from the Regional Office, augmenting the regular monthly billings. The more seriously delinquent cases and those unresponsive to letter service were referred to field representatives for personal service contact with the home owner to ascertain the conditions which gave rise to the delinquency and, if possible, to suggest or arrange plans to alleviate them. Efforts were made, successfully in many cases, to secure employment for those whose' delinquency was occasioned by unemployment. Eligible public assistance cases were aided in obtaining a shelter allowance which could be applied on.their home loans. Borrowers who were "over-housed" or otherwise burdened with obligations beyond income were assisted in the rental or sale of a portion or all of their property. Where, after analysis, there was a reasonable certainty that rehabilitation, modernization or enlargement of the building would sufficiently increase its income productivity to pay off the loan and the reconditioning expense, and if such reconditioning was requested, an advance was made for reconditioning payable in demand installment or, as in the majority of such cases, in a new monthly amortization payment resultant from a recasting of the total of the loan balance, accrued unpaid interest and the reconditioning advance. One of the most serious conditions contributing to delinquency was failure of the home owner to pay his real estate taxes and assessments. The Corporation paid these items to preserve its first lien on the security property. The payment so advanced was charged to the home owner's loan account which in some cases r e - 21 - suited in the account becoming delinquent. A survey found approximately 40 per cent of HOLC borrowers delinquent in payment of taxes for one or more of the years 1933 to 1937. To ameliorate this situation, to provide a further service to its borrowers, and in the interests of protection of its security, the Corporation offered a plan whereunder borrowers could meet their real estate taxes and property insurance expenses by making uniform monthly payments to the Corporation in addition to their regular loan installments. Service representatives urged home owners to enter into agreement with the Corporation for establishment of a special deposit "tax and insurance account" in which the Corporation would accumulate the monthly "tax and insurance" installment, usually equal to one-twelfth of the borrower's annual tax and insurance expense requirements and which the Corporation would bill monthly with the regular loan installment billing. When a borrower entered into such agreement (it was mandatory in the case of extended loan accounts and vendee (purchasers) accounts) the Corporation made arrangements with the local taxing authorities for the mailing of the borrower 1 s tax bills directly to the Corproation and at the appropriate time it undertook to pay the taxes and purchase property insurance from the accumulated funds deposited therefor by the borrower. If the funds deposited by the borrower were insufficient, the Corporation advanced the difference and charged it to the borrower in his next regular installment billing. Such agreements were entered into with close to 500, 000 borrowers and vendees, and, thereafter, in very large measure obviated serious delinquencies arising through non-payment of taxes. Advances for taxes, including taxes paid at foreclosure, amounted to $171,173, 035.44 most of which (approximately $113, 000, 000) were paid out prior to establishment of "tax and insurance accounts. " The Home Owners' Loan Act of 1933, as amended by the Meade-Barry Act, approved August 11, 1939, authorized the Corporation to extend the period for amortization of its loans from the original maximum of 15 years to a maximum of 25 years from the date of the original loan in cases where, in the1 judgment of the Corporation, the circumstances of the home owner, and the condition of the security justified such extension. The Corporation granted extensions in 249, 904 instances. In each case the account was recast and a new monthly amortization installment developed which would liquidate the loan within its extended maturity. At about the same time the Corporation notified its borrowers that it agreed to accept interest at 4 1/2 per centum per annum instead of the contract rate on all payments due on and after October 16; 1939 so long as the borrower continued to meet his regular payments and kept his account in a current status. Reduction of monthly amortization payment requirements through operation of the Meade-Barry Act, the voluntary acceptance by the Corporation of the reduced rate of interest, and the increased wages and opportunities for employment afforded home owners and their families through advancement of the national economy upon inauguration of the national defense program in fiscal year 1940, created a marked decrease in the percentage of accounts in the various delinquency categories during the ensuing fiscal year. As of June 30, 1941, there were 93. 5 per cent of accounts being paid on schedule or less than three months in arrears as compared with 74.4 per cent at June 30, 1940 while 3 per cent were more than three months in arrears but were liquidating compared with 9. 8 per cent at close of the previous fiscal year. Thus, 96. 5 per cent of accounts at June 30, 1941 were in a satisfactory liquidating status - 22 - as compared with 84.2 per cent at June 30, 1940 and only 3. 5 per cent were in default and not liquidating as compared with 15. 8 per cent one year previous. Insoluble delinquencies thereafter ceased to present a major servicing problem. Foreclosures As a matter of policy consonant with the extension of relief to distressed home owners, the purpose which motivated creation of the Home Owners' Loan Corporation, every possible forebearance was exercised before the Corporation authorized foreclosure. An examination of loans foreclosed in 1939 and 1940 disclosed that the average balance at time of foreclosure was greater than the average original amount of the same loans. The "particular borrowers had failed to reduce their principal indebtedness while the Corporation had had to make substantial advances in payment of taxes, insurance and maintenance to protect its lien on and interest in the security property. Foreclosure was resorted to only after every reasonable means of enabling the home owner to keep his property had been exhausted. Although the mortgage contracts contemplated foreclosure after arrearage for a minimum of ninety days, the Corporation withheld action in more than 70 per cent of cases until the delinquency aggregated 12 or more monthly installments, i. e., a year or more delinquent. As early as 1934 the Corporation was compelled to foreclose on eight properties. These, for all practical purposes, were thrust upon the Corporation. With the approach of cessation of active lending operations, the establishment of controls, and availability of personnel and equipment, the Corporation first was able to devote its energies to servicing of loans, realization of assets, liquidation of liabilities,and the weeding out and foreclosing of hopelessly delinquent loans. • The peak number of authorizations for foreclosure was reached in June of 1936 when, for about three months, an average of 8, 000 foreclosures per month were authorized. From then on, there was a marked although somewhat fluctuating decrease in the monthly number of foreclosures authorized. This apparently resulted from diverse regional economic conditions, seasonal employment, and kindred economic factors. Sometimes notice to the home owner that foreclosure of his property had been authorized spurred him to the effort necessary to reinstate his loan into a current status. In such cases the foreclosure authorization was withdrawn. The number of such withdrawals was relatively constant month after month. Approximately 253, 000 authorizations for foreclosure issued, of which 201,942 were processed to foreclosure leaving approximately 51, 000 cases withdrawn from foreclosure. Of the 201, 942 cases processed to foreclosure, 2, 414 were acquired by third-party bidders at foreclosure sale, 1, 387 were redeemed by the home owners before expiration of the redemption period, 198, 141 were acquired by the Corporation of which 194,134 were original loans and 4, 007 vendee sales. Authority to order the foreclosure of any lien of the Corporation or the taking of a deed in lieu of foreclosure was vested in the Regional Manager whose action in this respect was predicated upon analysis of the account, the service history of the home owner, and reports and recommendations of the Loan Service Division. The Regional Manager's authorization to foreclose was directed to the Regional Counsel and control and direction of the foreclosure operations thereafter were conducted by the Legal Department. The filing of any foreclosure petition in the local Courts and conducting of foreclosure proceedings usually were handled by local attorneys qualified in such practice and approved to act for the Corporation. As in the case of loan closing attorneys, the foreclosure attorneys received a fee - 23 - for their services. Schedules of reasonable fees for the various types of legal service responsive to such predetermination were approved, and issued by the General Counsel. Separate schedules were issued for each State and in some instances special schedules for specific jurisdictions. Property Management Immediately upon acquisition of a property by foreclosure, voluntary deed, abandonment or otherwise, it was taken under control by the Property Management Division at the Regional Office supervising and controlling operations in the State in which the property was located. Thereafter the Property Management Division was responsible for the rental, management, maintenance and sale of such properties. Title to the property vested in the Corporation coincident with or very shortly after the foreclosure sale in less than half of the States. There are statutory periods or periods fixed by the Courts for redemption of foreclosed properties in more than half of the States. There was a wide variance in the States of the time required for completion of foreclosure after the date of filing of foreclosure petition or advertising foreclosure. The minimum requirements averaged less than five months in 21 States, less than ten months in 7 States, less than 15 months in 11 States, less than 20 months in 8 States, and about two years in one State. In some States the mortgagor remained in possession during the redemption period. Each property was analyzed and appraised to determine its reasonable "as is" and "as reconditioned" value, its marketability in relation to the rental-sales policy, the extent and scope of any reconditioning program incentive toward rental and sale, the appropriate rental and sales prices, and whether it should be made available- for rental and sale or held only for sale. These decisions were made before acquisition of the property and any approved reconditioning program was carried out as early as possible after acquisition. Appraisals were made on the order and under the direction of the Appraisal Section and were performed by salaried appraisers employed by the Corporation or by fee appraisers as exigencies or economies of the conditions warranted. The Corporation, except during the loan closing period, maintained a minimum salaried appraisal staff and during peak workload periods, such as developed when properties were being acquired at the rate of 3, 000 to 5, 000 per month, assigned its appraisals to approved qualified residential fee appraisers. It is pertinent at this point to note that prior to inception of the Home Owners1 Loan Corporation there was an extremely limited number of professional residential real estate appraisers. In order to reasonably effectuate the basic requirement of the Act, which limited loans to a percentage of the Corporation's appraisal of the property, the Corporation had to undertake a vast in-service program for the training and qualifying of real estate appraisers. Formal examinations for the qualifying of professionally rated appraisers were conducted during the fall of 1934 and spring of 1935. Through this process 6, 000 were classified, of whom 1, 300 qualified for positions as salaried appraisers with the Corporation and 2, 700 were approved as qualified .fee appraisers. Allowable fees were established by general schedules issued by the Chief Appraiser upon approval of the General Manager. The appraisal standards, methods, and procedures developed by the Corporation as the pioneer in the wholesale residential real estate appraisal field established a national standard accepted by real estate boards, mortgage lending, institutions and Government agencies. During the loan closing period ended June 12, 1936, 4, 648, 533 original and review appraisals were completed. Between the beginning of the liquidation period, June 13, - 24 - 1936 and June 30, 1944, when the Corporation had acquired all but about 500 foreclosed properties, 524, 270 original and review appraisals were completed. In addition, the appraisal requirements of the Examining Division, Federal Home Loan Bank System, were performed and supervised on a reimbursable basis and more than 700 project appraisals were performed, in connection with defense and war activities, for the War Department, Navy Department, Department of Justice, Public Buildings Administration and other defense agencies, prior to and during World War II. These appraisals were also reimbursable. When the original property was to be reconditioned, plans and specifications were prepared and a factual estimate of the probable cost developed by the Reconditioning Section. Upon approval of the proposal, competitive bids were called for from approved qualified contractors whose credit and character standings had been investigated and who had established acceptable records of performance of similar construction. The work under the awarded contracts was supervised and controlled by the Reconditioning Section. The Corporation used both salaried personnel and fee architects, engineers, and inspectors. General schedules of fees commensurate with the work to be performed were developed by the Regional Manager and Regional Reconditioning Supervisor and approved by the General Manager. 417,396 reconditioning contracts, including necessary repairs, were completed and the cost included in original closed loans. In addition thereto more than 450, 000 contracts were completed by June 30, 1944 by which time the Corporation's reconditioning program was completed. More than a majority of these last mentioned contracts were in connection with acquired properties. Slightly more than 10 per cent of the contracts involved insurance cases supervised by the Corporation, and reconditioning at the request of home owners, the cost of which was advanced to the borrowers and added to their unpaid loan balances. It was the policy of the Corporation to sell, rent, and manage its acquired properties through brokers with whom the Regional Manager was authorized to enter into agreements for such purposes. In most instances the broker normally was engaged in the management and sale of real estate. Accordingly, the Corporation's contract management brokers also were its contract sales brokers. It was the policy of the Corporation that contract agreements be entered into with a sufficient number of brokers in any community so that the number of properties assigned to any one contract broker would not be more than he was equipped to handle efficiently and to stimulate interest and active effort on his part in the management and sale of the properties assigned to him. Contract sales brokers' commissions were fixed in general conformity to the going or local real estate board rates and a schedule of such commission rates was incorporated in or annexed to the contract. In addition to the contract sales brokers in each locality, other qualified active real estate brokers were approved to receive listings of properties available for sale and to negotiate for the sale thereof. Listings were not exclusive and after receipt of listings the approved sales broker conducted all further negotiations with the Corporation through the contract sales broker designated in the listing. The broker who made a sale received a commission at the rate which the.contract sales broker would have been entitled to had he made the sale. In all cases where an approved sales broker, or outside broker, made a sale, the contract sales broker received a two per cent over-ride commission with a minimum over-ride of $25. 00 in full compensation for his services in connection with the sale. The Corporation pursued a policy of orderly liquidation in disposing of its acquired properties. Sales prices were based on fair market value. The practice - 25 - of "dumping" properties was not followed on the premise that such a policy would have weakened the market which, in general, did not become stabilized until the effects of the defense activities in 1939 and 1940 were reflected in betterment of the national economy. Along with improvement of the national economy there also was a decrease in foreclosures and a resultant decrease of property acquisitions. During 1939 the number of properties sold per month began to exceed the number of property acquisitions per month and, as the following table illustrates, sales thereafter far exceeded acquisitions each year. HOLC Properties Sales Fiscal Year Acquisitions 1934 - 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 - 1951 5,275 39, 534 55,190 41, 743 23,826 17, 382 7,241 5,452 1,963 2,231 15, 159 37, 771 49, 716 34, 745 30, 857 21,620 4, 990 432 84 10 9 736 173 52 28 198,141 74 198; 200 198,215 t5 198,215 Other properties acquired(l) Properties charged off(2) 142 (1) Additional parcels of property included in foreclosures of original properties sold to vendees. (2) Properties rendered worthless by flood, landslide, tornado or other disaster. As the foregoing table discloses, the cumulative number of properties acquired exceeded the number sold during the first seven years following the loan closing period. This excess at any given time must be augmented by the number of foreclosed properties to which the Corporation was in process of acquiring title, i. e., properties in tentative control of the Corporation after foreclosure sale but in which title did not vest until after expiration of a redemption period. The peak point in the operations of the Property Management Division involved more than 103, 000 properties including more than 20, 000 properties in process of acquiring title. These latter properties were not readily salable until after title vested in the Corporation since until then the Corporation only could pass a title subject to r e demption. In general, however, the Corporation could operate the properties in process of acquiring title, accounting as might be necessary for the rental income received and expense of operation incurred in the event of redemption by the mortgagor. In a few jurisdictions properties in process of acquiring title were controlled and operated by Receivers appointed by the Courts. - 26 - The rental, maintenance, and operation of properties available for rental, including both acquired properties and properties in process of acquiring title, was conducted by contract management brokers who, as previously indicated, also were contract sales brokers. The management listings thus involved both properties held solely available for rental and properties available for rental and sale. Contract management brokers were responsible for collection and transmittal to the Regional Treasurer of all rents, performance of necessary and emergency repairs and maintenance, payment of such repairs from rental collections within monetary limits stipulated in his contract, obtaining tenants when vacancies occurred, and performance* of other duties normal to the relationship of management agents to property owners. Contract management brokers, and in the discretion of the Regional Manager contract sales brokers, were each required to give surety bond to the Corporation, and, where the volume of business and amount of rental collections warranted it, to establish checking accounts, in selected banks, separate and apart from their personal and other business checking accounts. Contract management brokers were reimbursed for their services on a percentage, fee or unit basis as determined by the General Manager and stipulated in their contracts. The payment basis was uniform for all brokers in a particular locality. The percentage, fee or unit was compatible with the going rate in the locality or as scheduled by the local real estate board. Payments were allowed for: (1) Collection of rents and property management (2) Securing a new lease or tenant (3) Lease renewal in cases where the lease renewal provision specified allowance of a renewal rate or commission (4) Supervision of maintenance repairs and reconditioning in" localities where such allowances were customary or where requested by the Corporation to exercise such supervision. The Corporation had close to 3, 000 contract management brokers collecting rents, maintaining and managing its properties, and since the sales broker and the management broker usually were the same individual or firm, close to 3, 000 contract sales brokers selling or participating in the sale of its properties. During the course of the operations of the Property Management Division, an average of approximately 80 per cent of acquired properties and properties in process of acquiring title were available for rental and an average of about 90 per cent of those so available were rented. Rents collected aggregated $138, 645, 668. 78 and rental commissions aggregating $13, 396, 904. 32 were paid. The following table gives a condensed summarized analysis of the capitalized value of the foreclosed properties acquired by the Corporation, the loss resultant from sale and charge-off and the net income from rental-management operations. - 27 - Properties Acquired (See Schedule 14) Sold Total (1) Number of properties Original amount of loans Advances Interest converted to principal $ $ Less: Principal repayments Unpaid principal balance Unpaid interest accruals Original amount of property accounts Add: Net capital charges Capital value of properties Less: Total sales price Capital loss Add: Sales expense and commissions Total property loss $ 797,061,136.55 $ 62,515,948.21 758,454.36 860,335,539.12 $ 31,258,343.62 829,077,195.50 $ 53,360,845.69 15 .797,036,294.54 $24,842.01 1,821.29 62,514,126.92 3.82 758,450.54 860, 308, 872. 00 $26,667.12 31,255,244.73 3, 098.89 829,053,627.27 $23,568.23 1,915.11 53, 358, 930.58 882,438,041.19 $ 882,412,557.85 $25,483.34 2,341.59 143,483,380.92 143,481,039.33 $1,025,921,422.11 $1,025,893,597.18 $27,824.93 737,755,535.47 13,188.50 737,768,723.97 $ 288,152,698.14 $ 288,138,061.71 $14,636.43 $ 48,410,154.03 48,410,154.03 $ 336,562,852.17 $ Operating income and expense: Rental income Expense Net operating income (1) Total acquired properties include: Original mortgage loans Vendee sales accounts Other property acquisitions 198,200 198,215 Charged Off 336,548,215.74 $14,636.43 $ 138,645,668.78 112,826,733.45 $ 25,818,935.33 194,134 4,007 74 198,215 - 28 - PART III - REALIZATION AND LIQUIDATION The Home Owners' Loan Act of 1933, as amended, authorized the Corporation to issue bonds for value not to exceed $4, 750,000, 000. The Corporation used that authority to the extent of issues amounting to $3,489, 453, 550, leaving $1, 260, 546,450 unused. Of the total issues for value, $2, 688, 215, 850 were exchanged for mortgages, $100, 000, 000 were used to acquire the capital stock of the Federal Savings and Loan Insurance Corporation, and $701, 237, 700 were sold to provide working capital. The Corporation was further authorized to refund its bonded indebtedness. This authority was availed of to the extent of issuances totaling $5, 013, 865, 325 of which $2, 951, 515, 325 were issued for refunding purposes and $2, 062,350, 000 were sold for refunding purposes. Bonds issued by the Corporation could not have a maturity date later than 1952. None did. The total issues of bonds for all purposes aggregated $8, 503, 318, 875 embraced in 21 series of i s sues, all of which have heretofore matured or were called for retirement prior to maturity. (See Schedule 4) Section 4(k) of the Act, as amended, contains the following provision: "All payments upon principal of loans made by the Corporation shall under regulations made by the Corporation be applied to the retirement of the bonds of the Corporation. " The rules and regulations of the Corporation required segregated accumulation, accounting control, and deposit of such funds in the United States Treasury, which, under an agreement between the Corporation and the Secretary of the Treasury, acted as agent for issuance of the Corporation's bonds, redemption of matured or called bonds by funds deposited by the Corporation for that purpose, payment of bond interest accruals from funds deposited by the Corporation for that purpose,. . and for maintenance of records, controls, and audit and reporting of the transactions. In addition to the funds required by law to be applied to the retirement of its bonds, the Corporation's regulations provided for segregation and deposit for bond retirement purposes, of the proceeds from sales of properties in entirety for cash, down payments of cash on term sales of properties, repayments of principal on term sales of properties, cash from partial sales (division of security property) of properties, collections of foreclosure deficiencies, and capital credits derived from rents received during management of properties prior to acquisition, sales of mineral rights and easements, and cash received from savings and loan associations upon repurchase of the Corporation's investments therein. Following is a summary of the aggregate accumulation of the above items. Payments of principal - Mortgage Loans " " " - Vendee Accounts Cash Sales ' Sundry Capital Credits Cash - savings and loan investments $ 2,465, 048, 886. 28 686,775,917.25 49,192,263.95 9,141, 962. 73 223,856, 710.00 $3,.434, 015, 740.21 By the end of January 1950, the Corporation had deposited with the Treasurer of the United States funds sufficient for redemption of all Home Owners' Loan Corporation bonds and for payment of all interest accruals thereon. The cash thus deposited consisted of $3, 226,158, 855.48 of the above tabulated segregated funds plus $135, 027,641. 07 of proceeds from disposition of assets and realized net income, a total of $3, 361,186,496. 55. The aggregate of bonds issued and retired are summarized in the following statement. - 29 - HOLC Bonds Issued, Retired and Outstanding Bonds issued In exchange for mortgages In payment for capital stock of Federal Savings and Loan Insurance Corporation Sold for cash for other than refunding purposes Total issued for value *2,688, 215, 850.00 10 ° . 000, 000.00 701. 237, 700. 00 $3, 489, 453, 550. 00 Sold for refunding purposes Issued in connection with refunding outstanding bonds Total refunding issues Total bonds issued $2, 062, 350, 000. 00 2,951.515.325.00 5, 013. 865. 325. 00 $8, 503, 318, 875. 00 Bonds retired and refunded Retired and redeemed Refunded Bonds outstanding June 30, 1951 $3,488,198.475.00 5.013.823,675.00 Consisting of: 4% Issue of July 1. 1933, called July 1, 1935 3% Series A of May 1, 1934, called May 1, 1944 2-3/4% Series B of August 1, 1934, called August 1, 1939 2-1/4% Series G of July 1, 1935, called July 1, 1942 $ $8.502,022,150.00 $ 1. 296, 725. 00 72,850.00 707, 175. 00 404, 400. 00 $ 1-1/2% for refunding of Series M called June 1, 1945 Represented by funds held by U. S. Treasury 70, 650.00 1,255,075.00 41, 650.00 ~ ~ The elements, other than refundings, involved in liquidation of liability for bonds issued are summarized as follows: Cash, statutory and regulatory accumulations, transferred to U. S. Treasury Cash, proceeds from disposition of assets and realized income, transferred to U. S. Treasury ™ * u J u Discount on "bonds purchased for retirement Cancelation of liability as consideration for transfer to the United States of title to the Federal Home Loan Bank Board Building Cancelation of liability as consideration for transfer to the U. S. Treasury of the Corporation's investment in the capital stock of the Federal Savings and Loan Insurance Corporation and the accrued interest thereon $3,226,158,855.48 135, 027. 641.07 $3,361,186,496.55 n 2 2,072.358.93 125.181.749.98 Bonds redeemed by United States Treasury Funds held by U. S. Treasury for redemption of outstanding bonds in face amount as detailed in the foregoing state- 128,154,108.91 3' 4 8 8 ' l g 8 ' 4 7 5 [ 00 ! ! : —' — ment g44#54 $ - 30 - 1.255,075.00 The Corporation's liability for its capital stock was $200, 000, 000, receipts for all of which were held by the Secretary of the Treasury for the United States. Section 4(k) of the Home Owners' Loan Act of 1933, as amended, authorized and directed the Corporation to retire and cancel the stock of the Corporation as rapidly as its resources would permit, and in connection with such retirement, specified that there be paid into the Treasury of the United States the reasonable value of the stock as determined by the Board. During December 1949, the Board determined that the par value of the Corporation* s capital stock was its reasonable value and authorized the General Manager to effect retirements from time to time as excess funds became available therefor. Retirement started during March 1950 and was completed during December 1950, as of the close of which, the Corporation's capital stock liability had been liquidated, $200, 000, 000 par value had been paid into the Treasury of the United States, and the receipts representative of the stock had been canceled. The funds used by the Corporation to effect retirement of its capital stock consisted of $196, 000, 000 derived from payments upon principal of loans, etc., which, after December 1949, were not needed for retirement of bonds, and $4, 000, 000 of other excess funds of the Corporation. An itemization of the capital stack issues and retirements appears on page 4. Acceleration of Payments The Corporation's mortgage contracts expressly permitted the home owners to pay off their loans before maturity without penalty, and to accelerate maturity by making larger or more frequent payments than were stipulated. The Corporation encouraged such prepayments and many of its borrowers voluntarily availed themselves of these benefits, particularly during and after World War II. There was a resultant yearly accelerated reduction in both loan balances receivable and in the number of loan and vendee accounts. During 1944, the Corporation closed out its portfolio of mortgage loans in the Territory of Hawaii by contract sale and assignment of 255 accounts to a syndicate composed of seven savings and loan or building and loan associations. A net premium of $2, 623. 24 was earned on that transaction. In March 1948, the Corporation initiated a program designed to accelerate maturity of accounts with balances up to $300. The home owners were urged by letter to pay off their balances in full, if possible, or to refinance them through local lending institutions of their own choice, or, if neither alternative was possible, to increase their stipulated installment payments so as to foreshorten the remaining term of their loans. At the same time, a program designed to accelerate closeout of the Corporation's portfolio in States having aggregate loan balances approximating $1, 000, 000 was initiated. This program, started in one State, expanded by inclusion of one or more additional States per month, ultimately embraced 20 States. Representatives of the Corporation negotiated with financial institutions with a view toward the refinancing of groups of accounts in the localities served by such institutions. All of the Corporation's borrowers in the States involved in this program were notified by letter requesting that they (1) make every effort to pay off their accounts, (2) if unable to do this, refinance through institutions of their own choice, or (3) refinance through institutions which the Corporation had found capable of and agreeable to refinancing of its accounts in general accord with the terms and conditions of the Corporation's mortgages. The Corporation's representatives assisted the borrowers and the institutions in negotiation of refinancings. About 50 per cent of the aggregate number of accounts in the States at inception of the program in the States were paid off as regular paid-in-full cases or as a result - 31 - of refinancing. Sale or assignment, to financial institutions, of the remainder was negotiated, largely in bulk groups of accounts at the par value of the accounts involved. In June 1949, after previous consultations with the House and Senate Independent Offices Appropriations Subcommittees and the Chairmen, House and Senate Banking and Currency Committees regarding the complete liquidation of (realization on) the Corporation's outstanding mortgages by June 30, 1951, the Home Loan Bank Board, which serves as the board of directors of the Home Owners' Loan Corporation, instituted a program to sell or assign all such mortgages by publicly offering them for sale on a State-wide basis. The first public offering was made on June 6, 1949 for the sale of the New York State loan portfolio. A bid was accepted and the contract of sale executed on September 1, 1949. Sale of the loan portfolio of a total of 30 States and the Territory of Puerto Rico was effected on the above basis. The last three contracts were executed in November 1950 and delivery of all accounts under all of the contracts was completed by the end of March 1951. As of June 30, 1949, about 60 days prior to start of deliveries under the above contracts, the Corporation's entire loan portfolio included 201, 338 loan and vendee accounts with aggregate balances of $319, 342,497.17. Normal billing, collection, accounting, and other operating activities were maintained on each account until shortly before the date set for delivery. At that time, the account was withdrawn from loan accounting and placed under control for assignment. Any payments received thereafter were segregated and controlled for return to the home owner or delivery to the assignee for credit to the assigned account. The contracts provided minimum and maximum monthly delivery limitations within which batches of accounts were designated for delivery from time to time during the month. Since accounts were maintained in an active status until designated for delivery, the aggregate balance of loans receivable reduced from day to day by application of installment and other payments, and the number of accounts was reduced by receipt from home owners of cash in full payment of their accounts. - Of the total of 201,338 accounts on hand June 30, 1949, there were 53, 732 paid in full in the course of -regular operations, 141, 869 were delivered to the assignees or their designees under the State-wide contracts, and 5, 737 were delivered to other assignees. The Corporation received a premium on the sale of its accounts under 27 of the Statewide contracts, under 2 of them it received par value, and under 2 it had to allow a discount. Premiums amounted to $2, 239, 025. 87 and discounts $19, 533. 97. As mentioned heretofore, the Corporation received a premium of $2, 623. 24 in 1944 on the sale of its Hawaii accounts. Thus, the net over-all premiums from sale of accounts amounted to $2, 222,115. 14. On page 33 is a statement showing in National summary and by States the number of accounts at June 30, 1949, the number thereafter terminated by regular payment-in-full and by assignment, the number assigned under State-wide contracts, the aggregate balances of such assignments, the premium or discount basis of the sales, and the dollar amount of premiums earned and discounts allowed. - 32 - LOAM ACCOUNTS LIQUIDATIOM REPORT FISCAL SEARS 1 9 5 0 AND 1 9 5 1 No. on Assigned under State Contracts Principal ~rremiuiR Amount 6/30/49 Regular Assigned Number Balances Percent United States. 201.338 53.732 147.606 141.869 $»/,*,328 373.67 $2 ,219.491.90 TTsnr) ilaiiu Alabama,. . . Arizona, . . Arkansas . . California . Colorado . . Connecticut. . . . . . . ft A! Bugps 4SCLCLHCU Q . Florida. Georgia. Idaho Illinois Indiana. . . . . . . . . 3,768 1,240 2,528 2,528 629 1,217 81 350 548 867 _ 688 4,464 1,975 2,489 2,489 1,332 3,011 57 2,292 2,734 136 . . . . . . 15,003 5,858 2.532 Kansas . . . . 3,072 Kentucky . . . • 1,422 Louisiana. . . 2,259 Maine Maryland . . . Massachusetts. Michigan . . . Minnesota. . . Mississippi. . Missouri . . . Montana. . . . Nebraska . . . Nevada . . . . New Hampshire. New Jersey . . New Mexico . . NevXbrk . . . North Carolina North Dakota . Ohio . . . . Oklahoma . . . Oregon . , . . Pennsylvania . Rhode Island . South Carolina South Dakota . Tennessee. . . Texas Utah Vermont. . . . Virginia . . . Washington . . West Virginia. Wisconsin. . . Wyoming. . . . D i s t . of Col. Hawaii . . . . Puerto Rico. . 460 872 422 655 2,356 40 1,612 1,835 2,356 1,612 1,835 1,822,558.52 Par + $501 2,080,099.65 Par + $101 17 680 899 5 5,369 2,339 810 854 394 902 67 3,175 1,088 9,055' 1,732 12,265 3,788 3,225 1,293 293 1,04$ 5,403 1,775 129 24 7 _ 17 — 14,670 2,575 12,095 12,095 _ 1,773 77 36 41 4,321 36,617 1,630 347 9.099 7, 77 1,900 36,617 1,630 198 120 108 809 10,709 1,331 537 453 1,686 10,709 1,331 2.437 3,476 236 7 4,786 657 561 2,495 5,913 771 " 42 2,314 1,043 1,466 6,377 200 12 229 571 30 978 1,336 189 854 920 546 1,910 369 _ 137 148 38 1 W 4,467 1 232 j _ U - 81 1,686 3,476 _ 1,336 4,467 - no - 33 - _ 92,140,499.21 100.25 & 100.35 2,017,968.99 Par + $1,000 _ 9.099 7J // 1,900 * Indicates Discount — 25,866,575.99 102.0 + $10,000 _ _ 110 _ 1,614,224.50 100.25 193,049.57 51,311.13 14,881.05 24,022.98 33,273.88 _ L Z60 29* 10,000.00 228,340.04 75,078.19 31,591.38 560.0O-22,456.02 _ 4,035.56 _ 40,938 2,424 449 13 880 15,495 1,529 501.00 101.00 18,350,712.81 101.052 3,519 3,072,524.14 101.67 1,722 1,488,102.39 101 0 1UX«U 2,218 1,897,552.14 101.266 1,028 1,333,876.01 102.3 + $2,600 1,357 1,688,370.53 Par 45 44 602.87 90.0 2,087 2,871,587.04 Par + $10,000 7,323 .-15,073,207.78 101.5 + $2,213 11,917^179.07 100.63 8,477 1,932 2,038,153.58 101.55 659 - 646i72942'~Par'+ $560 3,628 4,403,134.44 100.51 14 617 4,781 944 501.00 50,067.84 460.69 65,747.97 9,634 2,390 794 102 Par + $501 101.51 100.1 101.28 131 9,634 3,519 1.722 2,218 1,028 1,357 2,087 7,323 8,477 1,932 755 3,628 58 1,773 2,844 4,098.28 _ 624,339.36 3,315,750.12 459,735.93 5,136,558.32 196 72 2,732,104.46 100.15 _ 11.648.093.10 101.5 + $1,005 1,685,503.28 101.756 •Ji Jl J W»|A^ J W y ^ - V^rW - 13,366,436.32 101.755 2,516,567.11 102.5 - - 71,910.17 Par 1,711,583.33 100.01325 2,824,342.74 100.55 1,572,587.71 Par - 7,044,465.81 101.27 _ _ 150,736.83 90.0 _ 527,331.42 _ 292,261.18 1,000.00 175,726.35 29,600.70 234,580.99 62,914.19 534.89 15,533.89 _ 89,464.68 _ 15,073.68* The Corporation's original investment in mortgage loans of $3,093,451,321.01 was increased by supplementary advances for payment of taxes, insurance, maintenance and reconditioning, and by capitalization of delinquent interest, foreclosure and other acquisition costs totaling, in all $405, 451, 791. 37 which made the gross cumulative investment $3, 498, 903,112. 38. Of this, the Corporation realized $3,161, 748, 876.18 by collection of principal repayments, including the principal balances of loans sold or assigned, on its mortgage loan and vendee accounts, cash from sale of properties, and other property credits. The Corporation had a capital loss of $337,154, 236. 20 on its investment in mortgage loans. Operating losses amounting to $862, 470. 78 also were sustained resulting from fidelity and casualties, fire and other hazards and other miscellaneous losses. Total losses from all causes, thus, amounted to $338, 016, 706.98 and were completely offset by an excess of $352, 082,148. 74 of income from operations over the expense of operations, leaving an accumulated surplus of $14, 065,441. 76. The foregoing is summarized in more detail in the following table: Capitalization, Realization and Liquidation Capitalization Original amount of loans Capitalized additions: Advances - mortgage loans Advances - vendee accounts Interest converted to principal: Mortgage loans Vendee accounts Interest transferred to property: Mortgage loans Vendee accounts Property charges Charges direct to reserve Total capitalization $3, 093, 451, 321. 01 $ 183,427,702.23 9,249,682.10 192,677,384.33 6, 525, 327. 75 205,917.96 6, 731,245. 7^ 53,038, 264. 78 322,580.91 53, 360, 845.69 152, 090, 931. 61 591, 384. 03 3, 498, 903, 112. 38 Realization Principal credits: Mortgage loans $2,465,048,886.28 Vendee accounts 593, 077, 426.96 3,058,126,313.24 94,480,600.21 Cash proceeds - property.sales (net) Property credits (less term partial sales)_ 9,141,962.73 Total capital losses 3, 161, 748, 876.18 337, 154,236.20 Operating Expense and Loss Expenses: Interest on bonded indebtedness Administrative expenses Property management and sales expenses General miscellaneous expenses 1, 065, 052, 680. 77 660,738,136.59 272,767,676.61 112,826,733.45 18,720,134.12 Losses: Fidelity and casualties Fire.and other hazards Investments and miscellaneous 372,053.31 367,535.65 122,881.82 - 34 - 862, 470.78 1, 403, 069, 387. 75 Forward $ 1, 403, 069, 387. 75 Operating Income Interest - mortgage loans and advances $1, 055, 792, 756. 97 Interest - vendee accounts and advances 136, 223, 865. 56 Dividends and interest from investments 74, 380, 281. 62 Property management rental income 138, 645, 668. 78 Premium - sale of loan accounts 2, 241, 649. 11 Miscellaneous operating income 9, 850, 607.47 Surplus from liquidation (see Schedule 2) 1, 417, 134, 829. 51 $ - 35 - 14,065,441.76 PART IV - SUMMARIZATION The Home Owners1 Loan Corporation for three years, June 13, 1933, the date of approval of the Home Owners' Loan Act, through June 12, 1936, refinanced distressed real estate mortgage obligations and other liens of 1, 017, 821 home owners, and, in exchange for its bonds and cash, acquired 1, 017, 948 mortgage loans aggregating $3, 093,451, 321. 01. Since 1936, the prime objective of the Corporation was realization on its mortgage loans and liquidation of its bonded indebtedness and capital stock liabilities. These objectives were accomplished prior to June 30, 1951, by which date the Corporation had completed all of its operations, disposed of its operating equipment, and had released all of the residue of its personnel. Mortgage Loans (See Schedule 6) Capitalization Original amount Subsequent additions Realization $ 3, 093,451, 321. 01 405,451,791.37 Principal credits Proceeds, property sales Property credits Losses $3,498,903,112.38 $ 3, 058,126, 313. 24 94,480,600.21 9, 141, 962.73 3,161,748,876. 18 337,154,236.20 $3,498,903,112.38 Under an arrangement with the Secretary of the Treasury, the U. S. Treasury Department issued and accounted for issuance of HOLC bonds and redeemed and accounted for redemption of matured bonds and bonds called for retirement prior to maturity. The Corporation segregated definitive categories of its cash r e ceipts and deposited such cash in the U. S. Treasury for its use in the redemption of HOLC bonds. HOLC Bonds (See Schedule 4) Total amount issued Less: Refunding issues $8, 503, 318, 875. 00 5,013,865, 325.00 $3,489, 453, 550.00 Exchanged for mortgages $ 2, 688, 215, 850. 00 Capital stock of FS&LIC 100, 000, 000. 00 ' Sold to provide working capital 701, 237, 700. 00 $3,489.453,550.00 Liquidation of liability: Cash deposited in U. S. Treasury Discount on bonds purchased for retirement Cancelled by U. S. Treasury in consideration of transfer to United States of title to FHLBB building Cancelled by U. S. Treasury in consideration of transfer of FS&LIC capital stock and accrued interest thereon $ 3, 489, 453, 550.00 $3, 489, 453, 550. 00 $3,361,186,496.55 112, 944. 54 2, 972, 358. 93 125,181, 749.98 $3,489,453,550.00 — • - 36 - — All issues of HOLC bonds have matured or were called for retirement prior to maturity and, as indicated, funds have been transferred to the U. S. Treasury for their redemption. As of June 30, 1951, a small amount of bonds in the hands of the public had not been presented to the U. S. Treasury for redemption. Bonds outstanding - represented by: Special funds held by U. S. Treasury: Series MMM 1-1/2% refunding called June 1, 1945 Matured bonds $ 41, 650. 00 1, 255, 075. 00 $1,296, 725.00 In addition to the cash transferred to the U. S. Treasury for redemption of bonds, cash and cash equivalents aggregating $660, 738,136. 59 were transferred for payment of all interest accruals on the Corporation's bonded indebtedness. The Corporation's bond liability was extinguished during December 1949 and it thereafter proceeded to liquidate its $200, 000, 000 capital stock liability. This was accomplished between March and December of 1950 by repurchase at par of the capital stock, receipts for which were held by the Secretary of the Treasury. The shares and other evidences of the Corporation's investments aggregating $223, 856, 710. 00 in Federal and state-chartered savings and loan associations had all been repurchased by the associations or had been recaptured in the liquidation or conservation of certain distressed institutions. The Corporation invested funds deposited with it by borrowers for payment of taxes and insurance. The excess above current needs was invested in public debt obligations of the United States. All such investments had been disposed of by November 30, 1950. The Corporation, in anticipation of inevitable losses, made provision for reserves for losses. A summary of the reserves provided, the charges to the r e serves, and the excess reserves credited to surplus follows. Reserves for Losses (See Schedule 2) Notes (A)(B)(C) Title of Reserve Account Amount of Reserve Losses charged to Reserve Excess Reserve Credited to Surplus $349,737,153.25 $337,154,236.20 $12,582,917.05 Fidelity and casualties 622, 053. 31 372, 053. 31 250, 000. 00 Fire and other hazards 1,631,252.50 367, 535.65 1,263,716.85 $351,990,459.06 $337,893,825.16 $14,096,633.90 Mortgage loans, interest, and property - 37 - The Corporation sustained a loss each fiscal year until 1944 when its cumulative deficit reached the total of $134, 086, 329. 98. In each fiscal year thereafter, the Corporation enjoyed a surplus which by fiscal year 1949 had the cumulative effect of converting the cumulative deficit into a cumulative surplus of $1, 468, 117. 82 at June 30, 1949. Additional accumulations of surplus in fiscal years 1950 and 1951 produced the cumulative surplus of $14, 065, 441. 76 at June 30, 1951. Surplus (See Schedules 2 and 3) Operating and other income $ 1 , 417,134, 829. 51 Operating and other expense 1, 065,052,680.77 Net operating income 352, 082,148. 74 Losses: Mortgage loans, interest, and property Fidelity and casualties Fire and other hazards Other miscellaneous losses Surplus $337,154, 236. 20 372, 053. 31 367, 535.65 122,881.82 $ 338,016,706.98 14,065,441.76 During May 1951 the Corporation paid into the Treasury of the United States $13, 800, 000 of its accumulated surplus funds, thus reducing its available surplus at June 30, 1951 to $265, 441. 76. By November 30, 1951, due to a reduction in accrued liabilities principally as a result of the transfer of employees to other Government agencies, surplus was increased by $3, 146. 88 to $268, 588. 64; Pursuant to the Independent Offices Appropriation Act, 1952, approved August 31, 1951, the sum of $75, 000 of the surplus funds of Home Owners1 Loan Corporation has been made available to the Home Loan Bank Board to carry out final liquidation of the Home Owners1 Loan Corporation. The residue surplus of $193. 588. 64was paid into the Treasury of the United States during December 1951, thus accounting for the Corporation's surplus of $14, 068, 588. 64, as of December 31, 1951'. - 38 - PART V - LIST OF SCHEDULES Appended hereto are the following listed schedules summarizing pertinent phases'of the results obtained from operation, realization and liquidation of the Home Owners' Loan Corporation: 1. Condensed balance sheets for each fiscal year (1936-1951) after completion of loan closing activities. 2. Analysis of surplus, cumulative for fiscal years 1933-1936, separately for fiscal years 1937-1951, and cumulative for fiscal years 1933-1951. 3. Cumulative statement (fiscal years 1933-1951) indicating the surplus resultant from operations and the major elements of income, expense, and loss in connection therewith. 4. Statement showing the identification, amount, purpose and disposition of each series of issues of HOLC bonds. 5. Statement showing the composition of the total number of mortgage loan accounts, property accounts, and vendee accounts in the overall portfolio, and the number disposed of for value, charged off, etc. 6. Total capitalization and completed liquidation table, in summary total and by states. 7. Table, in summary and by states, of the number of original mortgage loans which had no extension of maturity, which had extension of maturity, and , in each category, the number foreclosed, ratio of foreclosure, and the number terminated for value. 8. Table, in summary and by states, of the original amount of mortgage loans, the average amount of loans, the amounts of subsequent additions, and the amounts involved in final disposition. 9. Table, in summary and by states, of the number and amount of term sales of acquired properties, the amounts of subsequent additions, and the number and amounts involved in final disposition. 10. Table, in summary and by states, showing the capitalization and liquidation of all property sales. 11. Table, in summary and by states, of operating income, expense, losses, and net profit or loss. 12. Summary statement of number and amount of original mortgage loans, amounts and categories of advances, amounts of interest converted to principal repayments and amounts charged off; number and amounts transferred to property; and number and amounts represented in loans paid off. 13. Summary statement of number and amount of vendee accounts, amounts and categories of advances, amounts of interest converted to principal, repayments and charged off; number and amounts transferred to property; and number and amounts represented in accounts paid off. 14. Detailed summary statement of the amounts and categories of the elements represented in the capitalization, sale and loss of acquired properties. - 39 - HOMB OTOBBS1 CONDENSED June 30. 1936 LOAN CORPORATIDH SCHEDULE 1 Sheet 1 BALANCE SHEETS t o June 3 0 . 1 9 5 1 June 30, 1936(1) June 30, 1937 June 30, 1938 June 30, 1939 June 30, 1940 June 30, 1941 June 30, 1943 June 30, 1943 #2,944,500,703.75 57,680,820.07 36,251.935.67 $2,556,1401,318.36 30,105,081.22 32^.519,993.15 $2,265,153,189.38 17.307.484.89 516,206,401.20 52,080,511,752.77 10,298,300.93 549.441,184.21 $2,012,760,434.21 7,493,650.73 424,185,211.46 $1,870,304,940.83 5,713,151.51 318,734,000.77 #1,675,887,920.88 4,772,207.39 262,307,275.60 #1,441,153,110.68 3,764,871.44 191,298,828.33 3,038,433.459.49. 5B,liPk. 398*98 2,911,026,392.73 65,2148,631.63 2,798,667.075.47 99,977,653.88 2,640,251,237.91 89,488,387.98 2,444,439,296.40 47,098,067.85 2,194,752,093.11 25,658,261.81 1,942,967,403.87 39.117.344.88 1,636,216,810.45 51.588,736.90 2f98O,0?9,o6o.51 2.825,777.761.10 2,698,689,421.59 2,550,762,849.93 2,397.341,228.55 2,169,093,831.30 1.903.850,058.99 1,584,628,073.55 163,142,700.00 53.l405.286.l49 50,010,685.37 3,ll4l,O9O.6o 54, 866.17 682,olt7.96 283,021,000.00 61,706,384.06 30,229,056.39 4,166,122.314. 641,638.90 10,431,046.29 311,726,610.00 107,394,957.53 22,722,099.85 3,900,073.28 149,630.31 6,112,563.03 316,458,810.00 149,217.560.48 91.235,774.78 3,591,810.66 135,437.44 3,419.634.03 303,024,210.00 35,066,997.63 51,041,629.10 3,201,171.04 129,684.90 197,531.84 282,853,360.00 46,111,498.43 64,886,485.56 2,759,646.72 106,140.63 121,364.73 267,069,810.00 26,158,266.50 42,732,528.50 514.835.04 50.e47.47 218,387,410.00 6,128,767.04 79,754.011-97 2,615,952.51 .-394,662.50 161,098.59 $3,250,1465,737.10 $3,215,973,009.08 #3,150,695.355.59 03.114,821,877.32 $2,790,002,453-06 $2,565,932,327.37 #2,243,046,007.65 #1,892,069,976.16 $3,0146,839,375.00 13.813.916.63 21,390,495.61 $3,013,149,650.00 8,451,211.09 23,351,695.83 $2,952,993,850.00 12,590,019.27 16,273,157.64 #2,949.305.025.00 14.328,849.85 7,832,281.50 $2,634,808,900.00 23,024,076.30 5,266,499.13 $2,419,608,800.00 30,024,603.00 5,062,627.25 1.899,7146.92 5l46.598.66 1,922,443.43 838,159.35 8,731,620.49 1,000,000.00 1.917.749.92 1,000,000.00 2,325,341.80 248,255.64 782,385.62 2,372,212.38 239,419.64 987.356.97 #2,119,317.750.00 24,932,853.93 5,089,899.80 2,526,528.70 250,000.00 391.901.45 #1,735.509,700.00 26,736,257.13 5,026,830.11 38,497.497.12 3.130,859.23 248,074.28 500,279.32 3,084,14.90,132.82 3,047.713,159.70 2,991,588,647.40 2,974,383,906.27 2,666,455.458.49 2,458,295.019.24 2,152.508,933.93 1,809.649.497.19 Capital 1 Capital stock issued Leas 1 Retired Outstanding 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200.000.000.00 Least D e f i c i t Surplus 34,024,395.72 31.740,150.62 40,893.291.81 59,562,028.95 76.453,005.43 92,362,691.87 109,462,926.28 117.579,521.03 165.975.6014..28 168,259,849.38 159.106,708.19 . li40,437.971.0'5 123,546,994.57 107.637.308.13 90,537,073.72 82.420,478.97 #3.250,1465.737.10 •3.215,973,009.08 #3.150,695,355.59 #3,114,821.877.32 $2,790,002,453^06 #2,565.932,327.37 $2,243,046,007.76 #1,892,069,976.16 ASSETS Loans a t f aoe -value Interest receivable Property Least Reserve for losses Investments (at oost) Bond Retirement Fund Cash Fixed assets ( l e s s depreciation) Aooounts receivable and other a s s e t s De'ferred and unapplied charges LIABILITIES AND RESERVES Bonded indebtedness Aooounts payable Accrued l i a b i l i t i e s L i a b i l i t y for NHA Conversion funds Deferred and unapplied credits Reserve for f i d e l i t y and casualties Reserve for f i r e and other hazards Hote It See Note (1) Analysis of Surplus, Schedule 2 . 2g009 #ool»15 HOME OTHERS' CONDBKSED June y f I936 June 30, 1945 June 30, 1944 ASSETS Loans a t faoe value I n t e r e s t receivable Property Lessi Reserve for l o s s e s Investments ( a t cost) Bond Retirement Fund Cash Fixed as-sets ( l e s s depreciation) Aooounts receivable and other a s s e t s Deferred and unapplied charges LIABILITIES AND RESERVES Bonded indebtedness Accounts payable Accrued l i a b i l i t i e s L i a b i l i t y for HHA Conversion funds Deferred and unapplied credits Reserve for f i d e l i t y end c a s u a l t i e s Reserve for f i r e and other hazards Capitalt Capital stock issued Lesst Retired Outstanding Less* D e f i o i t Surplus Note 2 t " 3» SCHEDULE 1 Sheet 2 BALANOB SHEETS t 0 JujW 30,^551 June JO, 19ltf June 30, I9I48 June 3 0 , 1949 June 3 0 , 1950 June 30, 1951 96U,615,332.57 2,5146,217.214. 4,611,874.54 $735,303,202.26 2,070,1404.66 841,339.85 $557,018,078.29 1,597,073.88 203,019.56 $1423,613,977.33 1,253.877.18 89,066.26 $319,31)2.497.17 915,675.10 54,632.53 $ 84,198,749.21 246,752.12 25.378.36 l,259,l£6,573.70 26,431,418.82 97V73.424.35 32.990.90l4.26 738,214,946.77 12,842,073-31 558,818,171.73 12,692,195.32 1424,956,920.77 2,643,366.18 320,312,804.80 2,625,353.06 84,470,879.69 - 100,000.00 1,232,995,154.88 958,782,520.09 725,372,873.146 5146,125,976.41 1422,313,554.59 317,687,451.74 84,370,879.69 161,529,250.00 132,984,250.00 5,550,074.38 16,917.473.39 2,439,498.36 338,080.47 23,073.72 127,453,750.00 3,848,282.25 " 8,815,l|4l.l|l 2.385.934-56 312,loo.L6 5,539.74 19,loU.,65O.oo 2,915.825.76 7,515,307.77 14.294,150.00 2,322,706.53 7,251,097.56 2,680,400.00 5ij.,666,175.58 2,562,2U3.87 178,i£6.37 50,850.23 ll4l.232,950.00 10,14014,109.35 33,828,918.95 2,508,535.23 155.77U.98 26,398.61 6,063,371.61 308,227.48 143,495.00 6,701.89 70,390.95 3,563.54 19.521.39 37.364.39 3.034.63 $1.5l6,l4l9,97i.0U $1,146,939,207.21 $883,625,323.78 §688,957,0214.83 $451,999,535.01 $3141,629.360.32 $ 93.171,537.08 311,262.11 $1,399,303,675.00 28,119,103.140 1,109,1192.81 18,709,433-47 2,489,327.31; 250,000.00 525.I469.20 $1,026,239,700.00 214,1(00,119.80 136,771.2U 109,191*83 1,374.271.86 250,000.00 517,729.01 $743,111,625.00 21,093,431.43 133,471.26 17.305.19 705,790.95 250,000.00 $532,976,450.00 17,210,653.39 159,2142.77 $247,050,775.00 15,074,954.93 131,027.82 $127,317,150.00 12,477,523.92 46,562.73 3,810,736.91 32,690.90 250,000.00 507.445.13 528,122.67 250,000.00 70,005.85 250,000.00 2,211,131.65 250,000.00 1,1)50,506,301.02 1,053.027,786.74 765.3ll,623«83 551.103,791.29 265,034,880,142 l40,l6l,242.50 6,284,559.146 45,820.35 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 326,000,000.00 74,ooo,0uu.u6 200 ,000,000.00 200 ,000,000.00 131;,O86,329.98 106,088,579.53 81,686,300.05 62,146,766.46 11,035,345.1a 1,1468,117.82 12,886,977.62 $1,220,105,824.06 3,257,263.28 36.O63.I486.36 6U,1J37,81)0.11 $ mm ^ 65,913,670.02 93.911,420.47 118,313,699.95 137,853,233.5k 188,964,654.59 201,468,117.82 86,886,979.^2 *l,5l6,U9»97l.0U *1,H46,939.2O7.21 $883,625,323.78 $688,957,024.83 $451,999,535.01 $341,629,360.32 $ 93,171»537.O8 Xnoludes l e a v e and s a l a r i e s i n amount $ 2 9 , 0 9 8 . 3 5 . 6/^0/51 a f t e r t r a n s f e r o f $13,800,000 t o Treasurer o f United S t a t e s May 2 8 , 1951* (See Page 3d r e s i d u e surplus) June 30, 1946 LOAS CORPORATION $ $ 6 45,820.35(2) 265,1441.76(3) $ 311,262.11 BOMB OTHERS' Analysis Net income before losses: Operating and other income Operating and other expenses Adjustment Reserves for losses: Mortgage loans interest and properties Adjustments (delinquent interest) Equivalent of losses charged to operations Losses charged to reserve $ 92,861,702.89 60,752,270.46 * 71,339,093.18 47,713,019.28 27,463,469.35 23,176,713.12 24,451,077.01 22,483,739.17 32,109,432.43 23,626,073.90 40,085.61 44,889.65 74,463.63 27,597.46 32,186.71 38,156.75 35,488.15 56,373,140.36(3) 181,763.39 21,055.66 82,285,893.91 29,557.26 36,770.96 277.38 61,398,402.36 13,243.33 42,083.30 115,112.15 26,504,082.92 3,572.69 83,752.62 85,774.52 27,479,757.08 13,340.31 42,944.23 76,289.13 65,094,329.00 27,500.93 28,657.65 64,570.62 603,33 405.33 7,432.65 562.89 56,621,472.39 82,427,368.47 61,604,434.14 29,158,OO3.O4(DE) 59,25O,655.35(DR) 37,153,357.13(DR) 34,900,000.00 40,000,000.00 40,000,000.00 40,000,000.00 40,000,000.00 40,000,000.00 11,211,150.83 56,6OO,416.73(CR) 82,39O,32O.13(CR) 61,439,8O6.O4(CR) 26,540,916.93(01) 27,528,607.98(01) 65,157,318.08(00 5,786,808.41 210.63 8,052.30 3,401.34 8,439.31 9,223.33 - - - 3,611.97 16,491.61 49,308.94 24,926,605.34 29,420,257.26 5,737,499.47 58,404,613.03 42,453,959.75 15,6O1,455.98(CR) 8,O52.3O(CR) 210.63(CR) 300,000.00 -550,000.00 3,401.34(CR) 8,439.31(01) 40,085.61(00 Year ending June 30. 1940 171,063.98 9,223.33(01) 1 1 1 1 1 I 1 1 - Deficit for period 34,024,395.72 34,024,395.72 (1) June 13, 1933 to June 12, 1936 the Corporation was engaged in refinancing mortgage obligations* The definitive financial statement as of June JO, 1936 represented cumulative operations covering above period and was supported by schedules affecting inoome, expense, reserves and surplus. In all periods adjustments affecting prior year income and expense are refleoted in period in Wiioh carried to surplus. 26,999,668.32 12,230,782.50(CH), Year ending June 30. 1939 - - 58,951,001.06 $106,359,213.23 83,875,474.06 29,436,748.87 Excess of reserves over losses Notesi 8116,475,442.09 92,024,365.08 24,930,217.31 Fire and other hazards Transfer from fidelity and casualties Losses charged to reserve Transfer to surplus Deficit cumulative Surplus cumulative $142,278,157.82 $128,528,141.00 126,025,839.30 105,351,427.88 11,211,150.83(00(4) $141,322,887.53 135,536,079.12 Transfer to surplus Fidelity and casualties Adjustments Losses charged to reserve Transfer to fire and other hazards Transfer to surplus Year ending June 30. 1944 $143,650,220.65 114,2*3,471.78 Total losses Net earnings in excess of losses Year ending June 30. 1943 $272,531,379.19 247,601,161.88 Payments unlocated less unidentified Miscellaneous of Surplus Year ending June 30. 1942 Year ending June 30, 1938 Losses: Mortgage loans and vendee accounts Discount on sale of loans Property sales Other property losses charged off Fidelity and casualties Fire and other hazards SCHHWLE 2 3heet 1 Year ending June 30. 1941 tear ending June 30, 1937 June 13, 1933 to June 30. 1936(1) LOAM COBPOBATION 27,136,012.16 2,284,245.10(2) 31,740,150.62 32,663.00 750,000.00 277.38(CR) 42,083.30(CB) 36,000.00 58,332.98 83,752.62(08) 320,083.50 240,319.00 115,112.15(00 85,774.52(CB) 750.000.00(00(9) 4,461,249.42 - 65,263,085.33 41,637,O11.43(DR) — 41,018.51 30,583.37 42,944.23(CR) 28,657.65(01) 184,667.00 76,289.13(CR) 89,760.50 64,57O.62(CR) 25,130,202.48(00 21,243,670.69(00 12,874,207.91 12,577,844.17 9,153,141.19 18,668,737.14 16,890,976.48 15,909,686.44 17,100,234.41 8,116,594.75 16,506,808.95 40,893,291.81 59,562,028.95 76,453,005.43 92,362,691.87 109,462,926.28 117,579,521.03 134,086,329.98 in prior years. 7/28A2 - 36,77O.96(CR) 75O,O0O.O0(CR) 33,247.30 4,226,O26.5O(DH) 27,648,183.01 363.78(DR) 12.902.76 42,359,678.87(CR) (3) Includes losses on sales prior to 6/30/38, (ll,212,5O£.5O, charged to operations (9) Bulletin £89 21,055.66(CR) 35,026.60 26,709,765.67 626.90(DR) 1.677.59(DR) 1O,489,265.9O(CH) 14,890,640.66 (2) •7»73°.562.73. property expense, less income, carried as an asset 6/3O/37 not included in operations. (lj) Board resolution meeting #1309 21,055.66 678.40(DR) 1.074.61 11/15/38 HOME OWNERS' LOAN CORPORATION Sheet 2 Analysis Net income before losses: Operating and other income Operating and other expenses Adjustment Losses: Mortgage loans and vendee accounts Discount on sale of loans Property sales Other property losses charged off Fidelity and casualties Fire and other hazards Losses on investments Payments unlocated less unidentified Miscellaneous Total losses Net earnings in excess of losses Reserves for losses: Mortgage loans interest and properties Adjustments (delinquent, interest) Equivalent of losses charged to operations Losses charged to reserve Transfer to surplus Transfer to surplus Fidelity and(casualties Adjustments Losses charged to reserve Transfer to fire and other hazards Transfer to surplus Fire and other hazards Transfer from fidelity and casualties Losses charged to reserve Transfer to surplus Excess of reserves over losses Deficit Surplus Deficit Surplus for period for period cumulative cumulative Notes 1 (5) Board resolution #523 2/27/1*8 (6) Board resolution #2216 11/15/2*9 (7) Board resolution #3306 6/29/50 (8) Board resolution #1*157 V l 6 / 5 1 (10) (i,)(B)(C) Comm. order #1186 12/26/1*5 Exaess reserves credited to surplus «li|,096,633.90 (See p. 37) of Surplus Year ending June 30, 1945 Year ending June 30. 1946 Year ending June 30. 1947 Year ending June 30. 1948 Year ending June 30, 1949 Year ending June 30, 1950 Year ending June 30, 1951 i 52,409,449.44 22,554,185.20 $ 40,115,848.56 14,392,358.17 $ 30,290,014.87 10,724,561.45 ( 48,300,504.18 7,169,562.92 $ 17,072,805.97 4,541,149.10 $ 11,589,344.36 2,642,327.07 $ 2,010,624.55 1,146,578.85 $1,417,134,829.51 1,065,052,680.77 29,855,264.24 25,723,490.39 19,565,453.42 41,130,941.26 12,531,656.87 8,947,017.29 864,045.70 352,082,148.74 37,527.31 10,952.26 7,678.44 3,004.61 15,008.51 22,507.45 - 7,576.80 " Cumulative June 13, 1933 June 30. 1951 1,938,654.69 776-.OO(DR) 27,451.17 4,012.16 _ 366.92(DR) 7.843.51 2,610.92 202,896.08 55,629.O1(DR) 10,705.88 — _ 5,272.82 9.941.13 15,305,768.54 1,987,770.87 175,797.82 68,349.35 46,206.76 53,510.55 35,581.56 338,016,706.98 1A,549,495.7O 23,735,719.52 19,389,655.60 41,062,591.91 12,485,450.11 8,893,506.74 828,464.14 14,065,441.76 1,800,000.00 1,800,000.00 15,200,168.88 2,818.37 22,098.51 21,499.69 _ 333.05(DR) 21.988.83 15,24O,514.56(CR) - 1,948,83O.95(CR) 149,877.99(CR) - 42,047.75 897.05(DR) 12,686.90 _ 94.96 6.738.35 48,829.lMCR) 10,0CO,00O.0O(CR)(5) 189.11(DR) 5.875.30 18,013.12(CR) 22,098.51 27,451.17 K),7O5.88 12,686.90 22,507.45 22,098.51(CR) 27,451.17(CR) 1O,7O5.88(CR) 12,686.9O(CR) 22,5O7.45(CR) 30,458.92 336.65(DR) 8.484.89 1,491.04 19,533.97 6,507.61 275.00 3,805.88 191.13(DR) 4.159.19 371,972.27 19,533.97 336,548,215.74 214,514.22 372,053.31 367,535.65 34,264.80 9,714.49 78.902.53 — 7,326.59 — - 14,903.3? CR) 2,095,353.06(CR)(6) 415,O96.61(CR)(7) 349,737,153.25 27,532.62(CR) 337,154,236.2O(CR) 72,467.38(CR)(8) 12,582,917.05(CR) 275.00 275.00(CR) 25O,O0O.00(CR)(8) 1,372,053.31 372,O53.31(CR) 75O,OOO.OO(CR) 250,000.00(CR) U) (B) 13,759.50 1,631,252.50 21,499.69(CR) 13,448,254.75(CR) 27,997,750.45 206,088,579.53 367,535.65(CR) 1.263.716.85(CR) 4,O12.16(CR) 513.716.85(CR)(10)_ 666,559.96(CR) 24,402,279.48 81,686,300.05 149,877.99(CH) 19,539,533.59 62,146,766.46 10,048,829.14(CR) 51,111,421.05 11,035,345.41 18,013.12(CR) 2,525,353.06(CR) 35O,O0O.00(CR) 12,503,463.23 11,418,859.80 1,178,464.14 1,468,117.82 12,886,977.62 14,065,441.76 14,065,441.76 (C) INCOME AND EXPENSE from the beginning of operations HOME OWNERS' LOAN CORPORATION The cumulative income of Home Owners' Loan Corporation from the beginning of operations totaled $1,417,134, 829. 51. Operating and other expenses of $1, 065, 052, 680. 77 reduced the net income before losses to $352, 082, 148. 74. Losses of $338, 016, 706. 98 (of which $336, 548, 215. 74 represented losses on property sales) produced a net profit of $14, 065, 441. 76 at June 30, 1951, after all acquired properties had been sold, all mortgage loan and vendee accounts had been paid in full or realized upon by sale or assignment, all investments and other assets had been realized on, and all liabilities had been liquidated. The major elements of income, expense,and loss are indicated in the statement on opposite page. SCHEDULE #3 STATEMENT OF INCOME, EXPENSE, LOSS AND SURPLUS CUMULATIVE FROM INCEPTION OF HOME OWNERS' LOAN CORPORATION JUNE 13, 1933 TO CLOSE OF OPERATIONS, JUNE 30, 1951 Operating and other income: Interest: Mortgage loans and advances Vendee accounts' and advances Investments - Government securities Dividends: Capital stock - Federal Savings and Loan Insurance Corporation Investments in savings and loan associations Property management operations Insurance commissions - Stock Company Association Premium on sale of loan accounts Rental income: Federal Home Loan Bank Board Building Leaseholds Miscellaneous $1,055,792,756.97 136,223,865.56 1,U17,726.52 $l,193,U3l4,3U9.05 28,217,076.07 Ut,7U5,U79.O3 72,962,555.10 138,61*5,668.78 3,073,582.02 2,2U1,6U9.H 1,882,713.62 357,810.85 2,2liO,52U.U7 lt.536,500.98 1,U17,13U,829.51 Operating and other expense: Interest-Bonded indebtedness Less: Premium on bonds sold Discount on refunded bonds Administrative expenses: Personal services Travel, transportation and communications Rents-Space, equipment, and related facilities Other Property management expenses General operating expenses $655,209,292.71* 1,618,866.1*3 653,590,1*26.31 7,11*7,710.28 221,752,775.25 17,026,11*6.83 Hi,5U6,126.87 16,1*1*2,627.66 272,767,676.61 112,826,733.1*5 18,72O,I3U.12 352,O82,1U8.7U Net income before losses Losses: Principal and interest: Mortgage loans 356,053.55 Vendee accounts 15,918.72 Discount on loans sold 19,533.97 336,518,215.71; Property losses - Sales 2lIt,5Ht.22 Other property losses Losses on loans, interest and properties Other losses: Fidelity and casualties Fire and other hazards Losses on investments Miscellaneous Total losses Surplus net income Less: Paid into Treasury of the United States Net surplus at June 30, 1951 1,065,052,680.77 337,15U,236.2O 372,053.31 367,535.65 3U,26U.8O 88,617.02 338,016,706.98 U*,065,U*1.76 13,800,000.00 265,1*1*1.76 HOME OWNERS' BOND Date of Issue Series Maturing h% "A" 3* 2-3/U* "B" Callable Any i n t . date $ 1-1/2* «C" n * * * * * ft * * * * * 1-1/2* 2-1/4* vw vw 3/8* 5/8* 1-1/2* vw iA* 1* 1* 1% 1* 1-1/4* 1-1/ii* Sold to Provide Capital «D" llgH tipn tlQII 7/1A2 "H" Any time irjn it Hjii "K" "L" "M" "N" «On "Qn 3.396,525 83,727,750 2,100 1+9,736,000 49,843,000 49,532,100 140,000,000 • 50,000,?25 132,000,000 60,000,000 94.000,000 $ 632,013,800 623,011,050 1.339,793,775 $ 100,000,000 93,397,225 6/LA5 Any time it OPERATIONS Total Issued for Value $ 635,1410,325 806,738,800 1,339,795.875 1)9,736,000 49,843.000 1)9.532,100 140,000,000 1143,397,14-50 132,000,000 60,000,000 9l|,000,000 Issued for Refunding 529,000,000 655,410,325 1,116,178,275 1,339,795,875 49,736,000 49,843.000 49.532,100 325,254,750 879,282,450 132,000,000 60,000,000 94,000,000 327,867,400 191,801,900 763,616,800 74,000,000 15,000,000 560,000,000 632,000,000 754,000,000 529,000,000 125,000,000 125,000,000 245,254,750 735.885.000 127,867,400 191,801,900 687,266,800 0A9) rrgf <i 0/50 Indicates transactions with U. S. Treasury. $2,688,215,850 $100,000,000 76,350.000 »3.489,453,55O $8,503.313.875 Refunded Retired 40,716,100 148,293,275 176,179,075 49,736,000 49,843,000 49.532,100 5,585,450 319,282,450 132,000,000 60,000,000 94,000,000 127,867,400 191,801,900 9,616,800 74.000,000 15,000,000 560,000,000 632,000,000 225,000,000 404,000,000 $ 594,694,225 967,885,000 1,163,616,800 319,669,300 560,000,000 754,000,000 529,000,000 125,000,000 $5.013,865.325 125,000,000 $3.489.453,550 All other transactions -with public REFTJNDIHG 11 $309,439,475 exohanged for 3% "A through market operations during latter part of 1934; $245,254,750 exchanged for lfcS n F n during June 1935; and $40,000,000 called and refunded as of July 1, 1935 through sale of like amount of l|?J "p". 3% "A" . • $335,885,000 exohanged for 2^# "6" through market operations during 1935 and 1936; and $632,000,000 called and refunded May 1, 1944 through sale of 1% "s" to U. S. Treasury. OPERATIONS and refunded as of July 1, 1939 through 1-1/fejJ " P " . . . $319,669,300 called lf sale of $127,867,400 3/Q% K" and §191,801,900 5/Q% "L" to U. S. Treasury. l-i/S.% BM" . . . $754,000,000 called and refunded as of June 1, 1945 through sale of 1% "TB to TJ. S. Treasury. 1% "i» $529,000,000 refunded as of June 30, 1947 through exchange for like amount of 1% "u" vdth U. 3 . Treasury. 1% "U" Outstanding balance of $244,000,000 l^U" as of June 30, 1948 * extended to June 30, 1949 at l | # . n 2-3/W "B" $400,000,000 exohanged for 2 ^ G* through market operations during 1935 and 1936; $687,266,800 exchanged for 1-j^S "M" during June and July 1939; and §76,350,000 called and refunded as of August 1, 1939 through sale of like amount of 1%% "M". 2-l/L# *G" $560,000,000 called and refunded as of July 1, 19J42 through sale of 1% "qn t o U. S. Treasury* 40,000,000 560,000,000 632,000,000 754,000,000 • n a 6y^0A8) Total Issued $ 3O9.U39,475 •t "U") "U") Sold for Refunding Purposes § • •>S" 4^ . . . . SCHEDULE 4 74,000,000 15,000,000 74,000,000 15,000,000 $701.237,700 • Issued for Value "Invested Exchanged for in PS&LIC Mortgagee Stock LOAN CORPORATION All of the $3,489,453,550 in bonds issued, exclusive of refunding operations, have been oalled or matured, as have the refunding bonds. 1-lAti "U" . . . $125,000,000 refunded as of June 30, 1949 through exchange for like amount of 1 ^ " V . All have been retired except $1,296,725 for rtiich funds have been deposited -with the U. S. Treasury. The above schedule presents identification, amount, purpose and disposition of each series of issues of Home owners' Loan Corporation bonds. SCHEDULE 5 The following schedule presents the number and d i s p o s i t i o n of the Mortgage Loan, Property and Vendee Accounts: Mortgage Loan Accounts Original borrowers Division of security(net) 1,017,821 127 Terminated for value: P a i d - i n - f u l l or sold aria assigned Redeemed from foreclosure , Third party foreclosure s a l e s Total Loan balance charged off Foreclosed and transferred to property 1.017.8li8 819,922 1,355 2,320 823,597 217 19U,13U 1.017.9lt8 Property Accounts Transferred from mortgage Loans Transferred from vendee accounts Other property acquisitions ' 19U,13U U,007 7k 198.21$ Worthless properties charged off Properties sold in entirety for cash Properties sold on terms 1$ 15*37° 182,821 198.215 Vendee Accounts Total properties Division of security Total vendee accounts Lees: Properties sold in entirety for cash 198,215 _ J:'^9 199*05*1 15,379 t_ I81t.li75 Terminated for value: Paid-in-full or sold and assigned Redeemed from foreclosure Third parly foreclosure sales Total Account balance charged off Foreclosed and transferred to property 180,328 32 gU 180, U5U lU U,007 I81i.h7g HOME OWEBS' LOAN CORPOM.TIOS TOTAL CAPITALIZATION & UQDHHTIOM SCHEDULE 6 A3 OF JDHE 5 0 . 1 9 5 1 0. S. 1 2 3 4 E e 7 8 g 10 n is 13 14 IS IS 17 18 19 20 SI 22 23 24 2S 26 27 28 SO 31 32 S3 34 35 30 37 38 an 9tf 40 41 42 43 44 4S 49 47 4S 49 SI 90 Ala. Aril. Irk. Calif. Colo. Co&n. Del. Pla. a». Idaho 111. Ind. Iowa Kan. Kjr. La. Maine Md. Mass. Mich. Minn. Hiss. Mo. Mont. Sen. Nev. n. H. ]». J . ».«H. N. T . H. e . N. D. Ohio Okla. Ore. Ftenn. R. I . S . C» S . D. * Va. Hash. W. Va. Wlao. Wyo. D. C. P. R. Hawaii Original Amount Total Additions Total Capitalisation Net Realization Total Capital Losses $3,O93,U5l,321.Ol &O5,ti5l,791.37 •3,1(98,903,112.38 $3,l6l,7U8,876.18 $337,15U,236.2O 9.6 37,037,585.52 15,771,066.90 18,677,767.60 136,70S,959.UO 22,922,1420.03 UU,23U,775.12 5,307,652.93 30,677,880.92 33,66U,632.l8 8,183,627.111 279,U38,5Ul.77 112,170,592.39 38,631,762.69 33,6U3,893.O1 25,326,811.20 UO,253,U93.72 7.73U.375.13 US.602,270.87 109,075,667.78 2U0,0lU,128.65 U7.966.105.lS ^,239,661.33 1,917,013.19 2.296.U1U.93 ll,797,8U2.09 2,OS5,8U1.78 6.123.9U9.2U 376,750.1.8 2,657,707.21 3,032,937.95 716,951.32 2S,7lli,726.26 7.96O.57U.O2 3.S7O.857.U6 6.S32.715.7U 2.569.211.3U 3,601,658.75 932,006.50 8,531,965.12 2ll.083.76O.22 lfl.7U5.096.08 l),71O,222.6l 2,252,299.62 9,li5U,S9U.23 623,977.39 U.831.U97.81 125,922.07 71,0,112.82 37,7U9,8l6.6l 373;6SS.2O 1DO.739.329.O6 3286.8U9.8S 1.93S.2U2.92 21,656,51iO.27 7.U29.856.82 1.58U.183.76 22,070,720.59 2,7l)0,U7U.73 1,198,695.50 1.881.U5U.11 3,867,038.39 10,l6U,671.2S 2,116,860.57 6O6.95O.U7 3,292.295.03 3,737,293.W i;O9U!881.68 . 16,651,152.30 2UU,5SO.O2 66U,838.66 16U.3O1.O3 3,651.33 ld,277,266.8S 17,688,060.09 »,97U,162.53 li.8,5O3,8Ol.U9 2U,978,26l.6l 5O.358.72U.36 5.U8U.UO3.U1 33,335,588.13 36,697,570.13 8,9OO,S78.U6 305,153,268.03 120,131,l66.kl U2,U02,620.15 U0jl76,608.75 27.896.O22.5U W,8SS,1S2.U7 8,666,381.63 SU,13U,235.99 133,lS9,U26.00 258,759,22U.73 52,676,327.76 18,715,976.66 81i,331,997.11 7,9O6,956.UO 32.9US.326.09 3,U2U,U92.B5 5,253,335.66 213.O76.8OU.33 5.5O8.2O1.9U 512,015,681.03 3U,68l,2US.9S JO.972.769.3U 327.S3U.S33.71 61,809,687.22 20,138,U62.65 189,085,600.77 27.UU1.19S.96 1U.U98.0BU.22 12,778,869.59 3U,90O,68O.28 U3,373,6U6.22 27,1S2,S3U.27 U,805,882.82 UO,987,7O9.U7 U2.6US.623.29 23.966,152.60 132.039.2U0.06 5,708,063.96 12,608,709.19 1,888,397.72 1,296,355.10 38,OS9,71S.8U 16,372,U9.2S 19.6SB.O27.W lll3,271,U01.S8 2U.O8O.313.3U U6.289.889.88 5,29S,323.U1 31.800.29S.US 35,299,811.60 8,SU7,660.12 29U,2S6,3U6.2O 113,628,311.10 39,801,863.11 33,U99,16S.1D 25,8O7,U15.22 3,217,551.01 1,315,960.81. 1.316.1S5.O6 5,232,399.91 897,9U8.U7 U,O68,83U.U6 189,080.00 1,535,292.68 1,397,758.53 352.918.3U 10,896,921.83 6,502,691.85 2,6OO,7S7.OU 6,677,UU3.*S 2,088,607.32 2,372,278.60 772.UU3.O2 U.823,057.59 26.38l.87U.2O 6,2lU,068.U6 2,210,223.83 • 1,391,6SO.UU 9,9US,U86.77 328.UU7.02 U,338,683.12 66,602.90 593.165.9U U2.396.O86.69 133,218.96 7.8 7.U 16.1I63.679.0U 7U,877,UO2.88 7.28U.979.O1 28,113,828.28 3,298,570.78 U.513.223.0U 175,326,987.72 S,13U,SU6.7U UU,Z76,35l.97 31,39li,396.10 9,O37,526.1i2 3O5,877,993.UU 5U,379,83O.UO 18,55U,278.89 167,O1U,88O.18 2U.700.721.23 13.299,388.72 10j897iUlS.li8 31.O33.6Ul.89 103,206,7714.97 25.035,673.70 k.198,932.35 37,69S,lOli.UU 38,9O8,32?.83 22,871,270.92 115,388,087.76 5,U63,513.9U 12,11J3,870.33 172U,O96.69 1,292,703.77 For three years, from June 13, 1933nortBage obli e a.tlon of 1,017,821 hone and retirement of fconds Issued in exo] <Mpitiai«a.tion, «"d oonpleted liquidation la,U82,873.87 7,893,938.61 U9,311,3Ul.86 1O6.777.S53.6O 2S2,SUS.lS6.27 S0.U66.1O3.93 17.32ll.328.22 7U,3B6,S1O.3U 7,580,509.38 28,606,UU2.97 3,357,689.95 U,66O,169.92 170,68O,717.6U 5,37U,982.96 395,230,367.61 32,871,660.03 9.703.6UU.38 313,683,UOU.5S 5S,UO3,2O9.85 19,386,629.91 l7S,iiU,8oo.U5 2U,98S,620.69 13,9S8,172.UO 10,999,691.07 32,662,999.52 1O7,229,U26.1O 25,S7U,1OU.22 U.198,062.32 38,35O,263.5U Ul,OU2,lS3.Ul 23.l69.S22.3U 12O.785.2SS.22 5.613.2U9.36 12,508,988.58 1,865,103.56 1.296.3U8.U8 . UJ6,785,313.U2 1,809,585.92 1.269.12U.96 13,851,129.16 6.UO6.U77.37 75l.832.7U 13,970,800.32 2,U5S,S75.O7 539,911.82 1,779,178.52 2,237,680.76 6,lUU,220.12 1,578,U3O.OS 607,800.50 2,637,UU5.93 1,6O3,U69.88 796,630.26 11,253,98U.8U 9U.8llt.6o 299,720.61 23.29U.l6 6.62 % Losses tl 3.6 8.1 3.U U.6 3.6 U.0 3.6 5.U 6.1 16.6 7.5 S-U 8.9 8.9 W.8 2.U U.2 7.U 11.6 U.2 13.2 1.9 11.3 19.9 2.U 22.8 5.2 11.6 U.2 10 .U 1:2 8.9 3.7 13.9 6.U 5.U S.8 12.6 6.U 3.6 3.3 8.5 1.7 2.3 1.2 0.000$ HOME OWMERS' LOAM CORPOMTIOH H3RIG1GE LOANS its OF JUIIE 3 0 . 1 2 3 4 E a7 8 0 10 11 12 13 14 19 IS 17 18 IB 20 SI 2S S3 24 SB 20 27 28 as SO 31 32 - Original Borrowers a. o. 1,017,821 Ala. Ariz. irk. Calif. Colo. Cona. Del. f>>. Oa. Idaho 111.Ind. Iowa ,Xao. La. Maine Hd.» Maaa. Mich. Hlnn. Hln. Mo. Moot. Heb. Hav. K. H. H. J . N . H. H. 1 . V. P. H. D . 37 SB SS 40 41 I* nil. Teiaa 42 43 Utah Vt. V*. Wash. V . Va. Wlaa. wyo. D. C. P. R. Hawaii 34 35 SB 44 48 40 47 48 48 £1 SO 5l,55b - W. OHIO Okla. On. Perm. R. I . S . C. S . D. 33 16,611 6,508 10,31iU 11,613 10,281 I,6b2 13,524 lb,8S0 b,692 69,985 146,615 15,633 18,504 9,234 14,379 3,398 15.928 2b,52b 81,126 21,021 8,762 24,535 3,679 13,597 1,211 1,867 36,339 2,1.62 80,115 98,556 23,960 9,41/5 58,793 6,118 5,683 Total Mortcure 1 Total Transferred Divisions Number to PropsptT 127 16,625 6,516 Ifl,3b4 51,565 11,613 10,283 1.6U2 13,526 lll,8Sl 4,692 69,988 W.817 lit a 11_ 2 _ 2 1 _ 3 2 7 3 _ _ 1 3 2 2 1 1 1 8 _ _ 6 _ lfl!507 9I23U 14,379 3l398 2 2 18 1 1&929 21l,527 81,128 21,023 8^763 214,536 3,680 13,605 1,211 1,867 36J3US s'U62 80,115 12,321 b.blS 98,57b 23,961 2 5^795 b 2 6,122 13,761 bb,3S5 10,7119 1,576 12,031 21,448 9,079 33,101 2,446 2,087 591 I18I 1,017,948 1 1 - . 6,116 5,685 6,122 13,761 bb,355 10,7b9 1,577 12,0U0 21,b53 9,082 33,M1 2,bti6 2,087 591 bSl 19b,13U 3,062 91S 1,661 5,b92 1,232 2,389 230 1,317 1,775 blS 9,057 6,566 2,89b 5,776 l,S2b 2,352 656 3,b59 10,132 7,147 2,765 1,313 6,713 339 3,97b S3 bo6 13,956 188 3b,399 1,607 1,208 12,1408 6,050 916 10,5Ut I,bb5 627 1,859 2,203 7,950 1,595 382 759 7,bl5 129 232 11 1951 Paid or Assigned Total t o Property Paid or Assigned 823,834 76B,Obb 162,859 585,ifi5 13,563 5,601 8.6B3 b6,O73 10,381 7,89b I,bl2 12,209 13,076 b,277 60,931 142,251 I6,7b6 12,731 7,710 12,027 2,7b2 12,1(70 lii,395 73,981 18,258 7,b50 17,823 3,3bl 9,631 1,158 I,b6l 22,389 2,27b bS,720 10,71b 3,210 86,166 17,911 8,500 bB,28l b,673 5,058 b,263 11,558 36,b05 9,lSb 1,195 9,987 18,839 8,323 25,686 2,317 1,855 580 b8l TFEQsffiXTOd 11,985 5|696 8,b98 b7,199 9,60b i,93b l!l60 »|8S2 I0,b70 b201 51,081 bO,b26 16,239 13,992 7,032 11,980 3,581 11,663 Ib,b7li 62,036 16,807 7,OJ6 18,131 3,3bO 1,351 23,7bO 2,U<6 b5,9bO 8,527 2,99b 72,233 21,52b 8,567 bl,b23 3,733 l>,071 14,850 10,102 38,702 10,005 1,062 9,353 20 156 7,06b 22,83b 2,271 1355 3b3 b79 2,9k? 895 1,621 5,1(21 l,lbl| 2,325 22ll 1,255 • 1,687 399 8,680 tit 5,290 llbb3 2,322 592 . 3,369 9,120 6,857 2,638 1.26U 6,370 326 3,652 S3 372 13,076 179 30,687 I,b78 1,061 12,079 5,998 902 9,926 1,379 595 1,695 2,103 7,810 1,587 350 2,012 'IS ••s 228 10 SCHEDULE 7 MfflBER 9,036 li,801 6,877 bl,778 8,ij60 b,6O9 936 8,597 8,783 3,802 b2,boi 3b,O91 13,1493 8,702 5,589 9,658 1,989 829li 5,35b 55,179 Ib,l69 5,752 U.761 3,0U* 5,987 1,090 979 10,66b 1,967 15,253 7,Ob9 1,933 eojisb 15,526 7,665 31,b97 2,35b 3,b76 3,195 7,999 30,892 8,bl8 712 7,3bl 17 552 6,339 1,127 333 b79 Brtended Hbrtean I Transferrod Paid or Total to Property Assigned 2l49,9Ob b,6bO 820 1.8b6 b,366 2,009 3,3b9 b82 3,67b Mi 18,907 8,391 3,b01 b,515 2,202 2,399 817 b,266 10,053 19,092 b,2l6 1.7U7 6,bO5 3bO 3,966 .68 516 12,605 316 3b,179 3,79b I,b2b 26 3bl 2,b37 8b9 17,372 2,385 1,614 1,232 3,659 5,653 7U4 515 2,687 1,297 2,018 U.267 732 2b8 2 11,275 113 20 bo 71 88 ^ 62 88 16 377 231 148 b86 81 30 6b 90 1,012 290 127 b9 3b3 13 322 — 3b 880 9 3.71Z 129 147 329 52 . lb 588 66 32 16b 100 140 8 32 41 10 3b b 1 238,629 b,S27 800 1,806 b*29S 1,921 3,285 b76 3,612 b,293 % Transferred t o Properfar Total Dnextended Extended 19.1 23.8 4.5 I8.b 14.0 16.1 10.7 2b.6 15.7 19.1 2.4 2.4 2.2 1.6 10.6 23.2 14.0 b7S 18,530 8,160 3,253 b,O29 2,121 2,369 753 b,176 9,0bl 18,802 b,O89 1,698 6,062 327 3,61ib 68 1:82 11,725 307 3O,b67 3,665 1,277 26,012 2.385 16,78b 2,319 1,582 1,068 3,559 5,513 736 bB3 2,6b6 1,287 1,984 9,753 171 728 2b7 2 The above schedule presents, in sunmary and in d e t a i l by States, the total number of original mortgage loan accounts, the number irtiich had no extension of maturity, the number -which had extension of maturity, resultant from benefit of the Ifeade-Barry Act, the number of properties in. each category acquired by foreclosure, and the number of accounts in each category which mre dosed out by payment-in-full or disposed of by sale and assignment, Including 217 accounts charged off. 9.7 12.0 8.8 12.9 13.5 14.7 31.2 16.5 16.U 19.3 21.7 bl.3 8.8 U.5 11.9 33.5 19.3 12.7 16.1 9.5 17.0 15.7 16.9 37.8 20.5 19.lt 22.9 28.9 63.0 U.I 13.2 1S.0 27.b 15.7 18.0 29.2 b.b 21.7 38.b 3 9.2 7.6 b2.9 13.0 27.3 12.6 25.2 9.7 17.9 23.6 11.0 30.U 16.0 y-i 14.8 2b.2 17.1 12.2 8.b 22.b 5.3 11.1 1.9 0.0 35.1 9.8 7'! 4.6 27.5 55.1 8.3 66.8 Hi 16.7 27.9 10.5 24.0 36.9 14.6 3b.7 20.8 20.2 15.9 33.0 21.5 02.9 10.3 30.2 'H 16.8 2.9 0.0 I4.I4 1.9 1.2 1.7 2.0 3.3 2.0 2.8 b.b 10.8 3.7 1.3 7.8 2.1 10.1 1.5 3.0 2.8 5.4 3.8 8.1 0.0 6.6 8.3 2.8 10.9 3.4 10.3 1.2 2.1 1.7 3.4 2.8 2.0 13.3 2.7 2.5 1.1 6.2 1.5 0.8 1.7 5.0 o.S 0.4 H 0.0 HOME OMttEBS' LOAN OOBPOBATIOH SCHEDULE 8 TOTAL MOBTOAOE LOAMS AS OF JPlffi 3 0 , 1 9 5 1 u. g. Original Amount Avorage *3,O93,U5l,321.Ol 37,037,585.52 15,771,066.90 18,677,767.60 1 Aim. Arii. 3 Ark. 4 Cmllf. B Colo. S Conn. 7 Del. 8 Fl>. S Sa. 10 Idaho 11 111. 12 lad. IS Iowa 14 Kin. IS Kjr. IS La. Maine Md. IB 19 H a s s . 20 M i c h . 21 Minn. 22 H i s . . S3 Mo. 24 Mont. 20 Net>. 26 H e r . 27 H. H. 2B H. J . 28 H. H. SO H. T . 31 ». p. 32 H. D. 33 Ohio 34 Okla. 39 Ore. as Penn. 37 E. I . 38 8 . C. 39 S . , D . 40 Ttonn. 41 Texaa 42 Utah 43 V t . 44 Va. 45 Waah. 4fl W. Va. 47 Wiac. 48 HJro. 49 0 . C. SI P. 0 . SO Hawaii 2 w 136,TO5,9S9.Uo 22,922,1420.03 UU,23U,775.12 5,107,652.93 30,677,860.92 33,6611,632.18 6,183,627.lU 279,U38,5U1.77 112,170,592.3? 38,831,762.6? 33,61(3,893.01 2S.326.8U.20 U0,253,U93.72 7,73U,375.13 ll5,6O2,27O.87 W9,O7S,667.78 2U0,01U,128.6S 117,966,105.15 16,U63,67?.QU 74,877,UO2.88 7,281i,979.01 28,113,828.28 3,296,570.78 U,5l3,223.OU 175,326,987.72 5,13U,SU6.7U ldl.276,351-97 31,39U,396.1O 9,037,S26.U2 305,877,993.14 SU,379,830.1iO 16.S5U.278.89 167,0114,880.16 2ll,700,721.23 13,299,388.72 10.897.Ul5.U8 31.O33.6U1.89 103,208,7714.97 25.035,673.70 U,198,932.35 37,695,Ulll.U» 38.908.329.83 22.871.270.92 115,388,087.76 S,Ji63,5l3.?U 12,Ul3,870.33 1,724,096.69 1,292., 703.77 Interest Conrortad Oroaa Amount Transferred to PrcoartT Principal Advances 93.039 $183,1(27,702.23 16,525,327.75 *3,283,U0U,3S0.99 *818,355,U6U.71 f2,U65,0U8,886.28 2.230 2.1<23 1.805 2.65B 1.97U It.303 3.109 2,268 1,S13,663.3U 869.762.liU 1,1014,992.00 11.815,538.87 971.OU5.96 2,50U,03S.O7 169,666.60 l,U93,O0O.8l l,88S,58tj.l? U13,937.5O 13,91D,Ul?.23 2,861,286.71 1,360,156.76 2,6Ul,531.96 938,800.97 1,805,937.09 UO8.673.53 3,635,U27.O1 10,150,328.78 12,256,812.26 1,976,029.92 1.157.27U.38 3.86U.122.05 367,669.5U 1,889,767.88 82.128.0U 3U3.3O5.5? 15,961,280.18 2UU.222.5U U2,373,785.6O 2,037,273.32 1,000,982.U7 8^81,900.12 2,857,051.97 828,8U8.53 11,3U6,113.86 1,101,665.29 697,701.08 7U6,69?.36 2,O18,UU9.2O 5,ltUl, 756.12 805,916.82 229,187.97 1,367,077.82 1,362,UU2.86 U3U.022.66 8,002,537.91 161,062.58 395.U2O.99 137,913.26 3.U91.2U 127,235.36 36,257.32 33,579.05 203,397.56 UO.370.96 80,631.90 12,951.81 90,133.16 93.U37.19 19.9U1.88 502,688.25 193,310.11 77,173.38 lUi,772.6U 68,228.39 6U,188.SU 16,997.80 129.521.U0 262,858.11; U6l.U32.S3 86,2U6.60 38,678,U8U.22 16,677,086.66 19,816,338.65 1U1,72U,895.83 23,933,836.95 U6,819,UU2.O9 5,290,271.3U 32.26l.OlU.89 3S,6U3,653.56 8;617;SO6.52 293,85l,6U9.25 115,225,189.21 U0,269,O92.83 36.U00.197.6l 26,333,8U0.56 U2.123.6l9.35 8,l6O,OU6.U6 U9,367,219.28 119,U88,85U.7O 2S2,732,373.UU 50,028,381.67 17,665,7U7.96 78,889,O55.U6 7,66U,951.68 30,106,967.23 3,387,761.80 U,871,232.88 191,625,160.98 5.383.S93.26 U5U.7U3.2U5.29 33,5U7,7U8.l6 10,075,878.59 3lS.OOO.98l.3U S7,26?,222.U7 19,U0U,391.93 178,698,701.7? 25,851,323.27 1U.032.U92.1U Afliount L« 3,993 2.298 1.978 1,818 2.7U3 2,799 2.276 2.B63 U.U18 2.959 2.S82 1.879 3.052 1.9B0 2,068 2.72U 2.U.7 U.8252,086 5.13U 2.5UG 2.0U7 3.10U 2.270 1.971 2.8ia U.037 2,3U> 1.780 2.255 2.327 2,329 2,^ 3.133 i.aiU 2,519 3.lk 2.231* 5.819 2,917 2,688 UU,79U.5U H7,530.53 12,303.13 103,371.07 7,062.98 li,7OU.25 336,893.08 U,823.98 1,093,107.72 116.O78.7U 37,369.70 6Ul,O87.78 32.3U0.1O 21.26U.5l 337,707.75 U8,936.7S 3S.U02.3U 31,030.31 76,725.35 85,563.35 2U.701.82 l6,llS.Ul 85.235.U5 96,276.89 57,786.77 260,308.80 6,575.03 28,669.01 6,052.17 1S3.U7 - ul67S.l4S.JS 33,128,8l6.UU 1O8.736.O9U.UU 2S,866,292.3U U,UUU,235.73 39,11(7,728.71 UO,367,OU9.58 23,363,080.35 123,6S0,?3U.U7 5,631,151.55 12,567,960.33 1,868,062.12 1,296,3U8.U8 9.16U.812.U2 3,161,699.50 3,575,625.97 2O,799,5U6.O7 2,93U,109.5l 13,013,651.76 830,667.80 3,93S,3U0.78 U,83S,696.07 9U5.U58.52 U5,93U,U21.1U 17,U33,287.?6 7,356,869.28 13,220,066.92 5,286,632.69 8,086,810.21 1,961,508.39 12,082,153.66 53,710,037.02 29.6SU.03S.92 8,360,393.26 3,l67,UOO.O2 2U,567,978.22 875,059.63 9,16U,717.83 237,820.10 1,393,316.58 82,87?,1UO.5S 533,289.62 219,017,92U.77 5,231,523.62 3,019,733.15 U6,9S8,SS8.U7 16,538,291.70 2.U2U.39U.23 38,l60,UUl.Sl 7,OUO,156.16 1,768,228.31 3,58U,1O7.67 6.583.22U.78 21.539,577.16 U,997,019.96 1,373,962.51 7.UU1.220.13 6,Z1S,677.UU 2,UU6,1U3.23 ' 32,958,115.51 362,663.97 1,SS8,U39.B3 3U.313.20 n,* v,™,- ,rt,«liile oresents. in aummary and In detail by States, the original anount of mortgage loans, the average amount of loans thiTanounts of additions thereto, and the amounts involved In the final disposition of the nortgage loans. nrmHtM 29,513,671.80 13,515,387.16 16J2U0.712.68 12O.92S.3U9.76 2O.999.727.UU 33,805,790.33 U,U59,603.5U 2B,32S,67U.U 3O,8O7,757.U9 7,672,OU8.OO 2U7,917,228.U 97,791,901.25 32,912,223.55 23,180,130.69 2l,OU7,2O7.87 3U,O36,8O9.1U 6,198,538.07 37,285,065.62 65,778,817.68 223,O78;337.52 Ul,667,988.Ul lli,U98,3U7.9U SU,321,O77.2U 6,789,892.05 20,9U2,2U?.UO 3.1U9.9U1.7O 3.U77.916.3O K)8,7U6,O2O.U3 U,8SO,3O3.6U 235,725,320.52 28,3l6,22U.5U 7,O56,1U5.UU 26S.OU2.U22.B7 UO,73O,93O.77 16,979,997.70 11(0,538,260.28 18,811,167.11 12.26U.263.83 8,O91,O37.U8 26.5U5.591.66 87,196,517.28 20,869,272.38 3,070,273.22 31,706,508.58 3U,l5l,372.1i( 20,916,937.12 90.692.8l8.96 5,268,U87.S8 11,009,520.50 1,833,7U8.92 1,296,3U8.U8 HOME OWHEBS' LOAH CORPORATION TOTAL VEHPEE ACCOUNTS SCHEDUIJS 9 •AS OF JUKE 3 0 , 1 9 5 1 Term ». S. 1 a 4 a a 7 e9 10 11 u 13 14 IS Alt. Ariz. Ark. Calif. Colo. Conn. Eel. 71*. Oa. Idaho 111. Ind. Iowa Kan. xy. La. IT Maine i s Hi. is Man. 20 Mich. 21 Klnn. MU«. es 23 Ho. 24 Host. 20 Neb. 20 Nov. 87 K. H. 23 K. J . »9 N. M. 30 V. 1. SI H. P. N. D. as 33 Ohio Okla. 34 as Ore. as Psnn. 31 B. I . 38 8 . C. 30 S . D. 40 Tenn. 41 Texas 42 Utah 43 V t . 44 Va. 4G Waah. 48 V. Va. 4? WlIC. 48 wyo. 40 D. C. SI P. K. SO Hawaii is Sales Interest Converted Dumber Amount 18U.U75 *688,OU2,OU7.98 (9,21)9,682.10 8,068,01)0.11 2,953,720.97 3,1492,1*20.12 23,025,707.1a 3,198,S1|O.O1 12,2O8,liO0.19 8ll,206.2U 117,1)30.55 77,129.69 52,193.81 309,560.15 53,292.56 115,523.28 9,687.52 8l,l)52).8!) 93,621.1)2 1U,51)5.99 372,330.73 192,819.38 121,705.23 229,818.58 9U8 1,651 s,sus 2,258 1,2U5 21k 1,319 1,7U? U17 8,870 6,358 2 5'S 5,513 1,1*00 2,279 511 2,937 9,006 7,om 2,770 1,282 6,501 321 3,985 US 33S 12,937 18? 31,61)3 1.WT 1,156 11,969 6,032 917 9,661 1,3U7 600 1,736 2,133 8.02U 1,583 • 269 1,616 2,655 718 6,802 139 181 5 3,552,765.88 14,560,299.67 876,369.20 146,120,255.00 16,088,957.22 7,081,717-50 10,102,960.61) U,579,U20.71 7,300,580.91) 1,362,137.1)8 11,005,656.89 37,861,892.19 30,1)25,292.61) 9, 111) ,000.62 2,827,209.73 20,159,110.13 775,97l).81) 7,97U,579.56 200,832.68 1,011,675.67 59,917,810.56 537,870.51 157,3U7,6U2.81 U,358,288.27 2,7OU,1O7.39 1)6,261,811.96 H),7S9,17O.8B 2,1*21,981.78 33,1)1)0,850.71 5,975,689.63 1,665,883.37 2,857,608.01 6,053,802.81 20,811,803.37 14,828,31)2.20 810,391.75 6,21)3,989.81 7,068,376.89 2,179,367.86 29,O29,89U.U8 378,032.10 1,295,526.79 2!),O5?.8O 57,266.66 87,253.87 18,576.05 175,022.02 636,502.58 1)1)1,252.92 139,125.31 ltl.722.U9 21)8,019.15 12,263.93 205,057.1)2 1,671.20 13.293.3U 1,122,936.13 8,1)73.83 1,883,060.20 99,U7U.lU 73,055.1)2 30U,266.6l 16U.U75.U0 Ut,3Bl).22 525,752.09 53,719.72 36,978.11 6U.5S8.OU 113,073.35 35U,866.07 56,980.65 9,357.93 75,9U).79 76,315.19 11,5O6.OU 229,929-91 5.7U0.16 16.U91.73 231.70 S205.917.96 U.133.91) 1.UO6.S9 1,597.97 U.060.01 . 1.S8U.O6 1.U72.66 266.91 2,900.29 2,801.11 US8.67 18,Oll).98 1O.5S8.9U 3.62S.9U 3,373.68 1.813.8U 1,812.51 230.66 1,226.60 3,755.11 8.U55.19 1),829.98 1,882.68 7,259.05 107.61 6,050.20 M l . 23 225.21 7,177.70 JJ)8.17 56,772.08 2.27O.1U 2,087.15 15,759.17 1,199.63 520.91 U.179.92 1.123.U3 927.22 651.07 3.12U.7U 3,796.05 91)3.28 213.01 999.11 " 1,187.33 1,313.71 6,892.1)1) 38.31 502.77 - Gross Nwdnr Transferred Paid or to Property Imrtpmrt Transfers to Property Principal Credits *697,U97,6U8.Ol) $10,721,730.79 •686,775,917.25 U.007 180,1)66 8,l89,60U.6o 3,032,257.25 3,51(6,211.90 23,339,327.57 3,253,1*16.63 12,325,396.13 821,160.67 3,637,U)1.O1 U,6S6,722.20 891,373.86 U6,SlD,600.71 16,292,335.51) 7,207,01)8.1)7 10,666,152.90 U,638,5O1.21 7,389,6U7.32 l,38O,9l4U.19 11,181,905.51 38,502,11)9.88 30,875,000.75 9,257,955.91 2,87O,8ll).9O 2O,UU),388.33 788.3U6.38 8,185,687.18 202,685.31 1,O25,19U.22 6l,0U7,92U.39 51)6,1)92.51 159,2B7,1)7S.O9 14,1)60,032.55 2,779,21)9.96 l)6,58l,837.7U ll4,92U,81)S.91 2,U66,886.91 33,970,782.72 6,030,532.78 1,703,788.70 2,922,817.12 6,170,000.90 21,17O,1)65.U9 1),B86,271.13 819,962.69 6,320,903.71 7,11)5,879.141 2,192,187.61 29,266,716.83 383,810.57 1,312,521.29 2U.291.5O 150,162.76 128.3O3.U6 9U.6U2.71 570,080.30 ' 13O.21U.78 50,961.30 9.U95.73 119,395.51 69,911.U0 2U,799.22 53S.619.U7 2U9,O06.53 225,827.20 311,825.66 77.527.UU 128.U93.59 37.OUS.O1 83,190.78 330,728.90 U2U.779.06 321,232.53 81,360.39 8,O39,UUl.8U 2,903,953.79 3.U51.S69.19 22.769.2U7.U7 3,123,201.85 12,231),U3U.83 8ll.66U.9U 3,517,71)5.50 U,586,8lD.B0 866.S7U.6U U5,97U,98l.2U 16,01)3,329.01 6,981,221.27 1O,35U,327.2U U,S6O,973.77 7,261,153.73 1,31*3,899.18 11,O98,71U.73 38,171,1)20.98 30,1)50,221.69 8,936,723.38 a,789,U5U.Sl 19,9i4O,571.U6 779,863.68 7,816,781.02 202,685.31 989.U21.22 60,516,922.1k U99.623.86 157,870,986.27 U,373,371.98 2.6U3.16U.38 U6.1S9.O53.67 lU,6lU,U05.71 2,U1B,613.82 33.UO3,916.71 5,996,262.96 1,665,253.08 2.821.U3U.36 6,O22,793.7U 2O.188.66U.37 U.811.3O6.7S 79U.7UO.96 6,162,982.99 7.OU5.U6O.86 2.139.77U.03 28,98U,8O9.27 355.38U.S1 1,262,311.06 2U.291.50 77 2,933 U73,8l6.87 8,UB2.70 368,906.16 35,773.00 531,002.25 146,668.65 1,1*16,1*88.82 86,660.57 136,085.58 U22.78U.07 31O.UUO.2O U8.273.09 566,866.01 3U.269.82 38,535.62 101,382.76 1U7.2O7.16 981,801.12 7U,96U.38 25,221.73 157,920.72 100,1)18.55 S2.U13.S8 281,907.56 28.U26.O6 50,210.23 1U7 57 18 U 50 37 17 139 123 113 195 2U 39 19 29 111 119 I 236 16 153 16 333 36 62 136 1U2 26 199 11 IS BU 71 U17 31 10 66 U9 19 90 11 7 - The above schedule prerents, in siraaary and in detail by States, the rnmber and sales price of acquired cropertles sold on terms, the amounts of additions thereto, and the numbers and mounts Involved in the final disposition of such vendee accounts. - I06 1,599 5,398 1,188 2,2l»0 210 1,269 1,710 U00 6,731 6,235 2,799 5,316 1,376 2,21)0 U92 2,908 8,895 6,925 2.6U3 1,226 6,332 317 3.7U9 US 319 12.78U 173 31,310 l.USl 1.O9U 11,833 5,890 891 9.U62 1,336 582 1,652 2,062 7,607 1,552 2S9 699 6,712 128 17U S HOME OWNERS' LOAD CORPORATION PROPEBTI SALES COMBINED SALES lit EHTIRETT & PABTIAL SALES AS OF JCNE 30, 1951 Capital Value Number n. s. 1 2 3 4 5 Ala. Aril. Ark. Calif. Colo. Coiui. 7 Del. 8 71a. 0 Ca. 10 Idaho 11 111. 12 Ind. 13 Iowa 14 Kan. IS Ky. IS La. IT Maine IS Hd. 19 Haas. 20 Mich. 21 Minn. 22 H i s s . 23 Ho. 24 Mont. 25 Neb. SO Kev. 27 K. H. 28 N. J . 29 K. H. SO N. Y. 31 N. C. 32 H. D. 33 Ohio 34 Ok l a . 35 Ore • 30 37 B. I . 38 S. C. 39 S. D. 40 Tenn. Texas 42 Utah Vfc. 43 Va. 44 Wash. 4S W. Va. 4S Wise. 47 Vyo. 4S D. C. 01 P. R. SO Hawaii e j < 198,200 tl,025,893,597.l8 3,139 958 1,715 5.6UO 1,28? 2.U10 23U 1,367 1,813 U32 9,197 6,688 3,007 5,971 1.5U9 2,393 675 3.U89 10,21)5 7,267 2,891 1,370 6,887 3U3 U,210 • S3 U22 1U.108 201, 3U,733 1,6U3 1,269 12,5U8 6 -k1 1O.73U 1.U56 6U6 1,9U2 2,275 8,370 1,62U 392 2,125 2.66k 779 7,507 lUO 239 U 11,050,828.51 b,l66,6l2.tt3 U,712,518.05 27,269,69S.3U U,O2U,O55.38 16,383,369.95 1,018,338.80 5,012,159.11 5,833,177.6k l,222,lU8.OS 55,75O,TUl.O7 22,2til,210.71 9,U69,67O.8O 16,9US,O37.BU 6,79S,O23.!t2 9,735,871.80 2,1*U,17U.US 16,651,682.70 66,763,029.55 3S,55U,330.99 ll,13S,8SO.5l U,218,OO1.92 29,908,9H«.ll 1,O73,U95.86 12,100,952.37 270,700.96 1,783,563.25 103,189,172.18 676,512.25 27U,727.U69.75 6,328,821.16 3,95U,UU2.76 59,223,559.80 2O.73U.9U3.71 3,096,736.53 1|8,321,35O.9O 8,559,151.69 2,212,951.83 U.633.U76.58 8,296,310.11) 26,500,578.11 6,2U9,65U.9O 1.7UU.6O9.3O 9,323,992.77 8,l)O7,687.lU 3,073,293.52 1)0,811,882.52 U57.U36.28 1,828,100.96 39,333.63 Sales Price SCHEDULE 1 0 Total las Capital Loss CogroLssion k Sales Ex Comndssicn Sales Expense Total %Ctp. Amount J737.755.S35.U7 $288,138,061.71 «U3,556,79S.2O «1),853,358.83 «U8,UlO,l5U.O3 *336,SU8,2l5.7U 8,Ut8,669.98 3,057,702.20 3,631,99li.li) 23,796,775.70 3,331,655.19 13,UiO,712.92 863,759.32 3,7Ul,825.O9 1),756,136.72 928,892.27 U7.97O.767.78 16,938,263.38 7,37O,2Ul.O3 11,072,119.22 5,038,202.65 7,835,S99.5l 1.7U1.7UO.99 12.6U6.O73.9U U3,213,517.88 31,Ul6,5S7.1O 9,U91,O78.U8 3,019,062.1)0 21,U06,171.3U 8O5,8O3.1)U 8,X1),281.55 211,789.51 1,279,1)28.56 65,222,235.1)5 575,988.70 169,197,U8O.O9 U,8OS,O29.S7 2,851,927.76 1)8,550,692.81 15,329,521.12 2,515,82O.U5 36,813,815.37 6,1)71,707 .UO 1,780,665.93 3,069,068.28 6,1492,623.75 21,72U,U82.B2 l),989,7O1.82 1,212,U6U.O7 7,11)2,1)79.3U 7,265,605.17 2,U17,1»O5.31 31,833,7U6.8U 385,319.12 1,617,131.22 31,800.79 2,602,158.53 1,108,910.23 1,080,523.91 3,1)72,919.6)4 692,UO0.19 3,2142,657.03 15U.579.U8 l,27O,33l«.O2 1.O77.0U0.92 293,255.78 7,779,91*6.29 S,3O2,9U7.33 2,099,1)29.77 5,972,918.62 1,756,820.77 1,900,272.29 669.l433.U6 U,O05,6O8.76 23,5U9,S11.67 U.137,773.89 1,6U1),772.O3 1,198,939.52 8,502,7U2.77 267.692.U2 3,796,670.82 58,911.U5 5OU.13U.69 37,966,936.73 100,523.55 105,529,989.66 1,523,791.59 1,102,515.00 10,672,866.99 S.UO5.U22.59 580,916.08 11,507,535.53 2,087,UUU.29 U32.285.9O 1,S6U,UO8.3O 1,803,686.39 U,776,O95.29 1,259,953.08 532,11)5.23 2,181,513.U3 1,1U2,O81.97 655,888.21 8,978,135.68 72.U7.l6 210.969.7U 7.533.OU 5O3,935.3U 188,529.36 2O1.3U.52 1,5U7,53U.25 175,732.53 719.S88.6U 31,305.95 211,586.1)1 271,382.06 U8.527.66 2,875,276.76 977.168.U0 UOU.295.23 628,377.55 292.U19.S2 Ul6,ll)9.8U 85,950.05 719,630.07 2,U99,773.87 1,863,635.82 509,021). 9U 167,161.55 1,26U,U52.78 1)5,578.75 USS,O52.71 6,999.00 76,982.50 3,996,016.517 30,885.92 10,O36,2Ul.2U 260.U62.57 li7,6l5.UO 2,9U5,751.89 97O,383.U2 1U3.637.U6 2,128,291^ 320,701.03 9S.73U.OU 167,U15.O1 376,927.82 l,292,U87.Ul 298.U62.80 67.79O.US UOU,636.S5 UU2.233.B5 127.U2U.81 2,OO9,588.U9 18.7U3.1O 87,585.50 U15.00 UO.609.98 18,217.90 31,319.87 199,080.71 23.97U.8U 53,076.59 2,837.72 U7.982.92 UB.158.U9 10,976.76 233,312.U6 20i),O35.92 9U,UB7.68 160,133.66 26,779.3U 52,827.12 W.13U.35 77.SUS.29 2l6.S8l.2O 20U.933.27 51,972.90 25,160.29 176,721.90 11,016.68 80,309.31 551.98 5,397.30 UlB,360.32 1,165.56 1,123,987.59 2U.21O.69 16.3OU.61 202,557.81 26,195.91 26,810.02 268,807.27 12.983.U1 11,768.29 UU,7U6.O3 56,391.38 69,961.57 13,900.50 6,286.59 U6.U1U.9O 13,370.55 12,901.97 263.28U.37 3,1*62.61 1,085.93 26U.S2 6114,51,5.32 206.7U7.26 232,631.39 l,7U6,6llj.96 199,707.37 772,665.23 3U.H3.67 259,569.33 319.SUO.55 59.5OU.U2 3,108,589.22 1,191,2OU.32 1498,782.91 788.SU.21 319,198.86 U68.976.96 96.O8U.UO 797.17S.36 2,716,355.07 2,068,569.09 S6O.997.8U 192.321.8U l,UUl,17U.68 56.59S.U3 535,362.02 7,550.98 82,379.80 U,l*lU,377-29 32.05l.UB 11,160,228.83 28U.673.26 163,920.01 3,11)8,309.70 996,579.33 17O,UU7.l48 2,397,098.68 333.68U.UU 107,502.33 212,l6l.OU U33.319.2O 1,362,UU8.98 312,363.30 7U.O77.OU U5l,0Sl.j)S U5S.6OU.UO 1UO.326.76 2,272,872.86 22,205.71 88,671.U3 679.52 3,216,703.85 1,315,657.U9 1,313,155.30 5,219*S3U.6O 892,107.56 U.015,322.26 188,723.15 1,529,903.35 l,396,S8l.U7 352,760.20 10,88B,53S.Sl 6.U9U.1S1.65 2,598,212.68 6,66l,U29.83 2,076,019.63 2,369,2U9.2S 765,517.86 U,802,78U.12 26,265,B66.7U 6,2O6,3U2.98 2,205,769.87 1,391,261.36 9.9U3.917.U5 32U.287.85 U.332.032.6U 66.U62.U3 5B6,5ll).U9 U2.38l.3lU.O2 132,575.03 U6,69O,218.U9 1,8O8,U6U.85 1,266,U35.O1 13,821,176.69 6.U02.001.92 751,363.56 13,90U,63U.21 2,U21,128.73 539,788.23 1.776.S69.3U 2,237,005.59 6,138,SUU.27 1,572,316.38 606,222.27 2,632,56U.8B 1,597,686.37 796.2lU.99 U,25l,OO8.5U 9U.322.B7 299.6Ul.17 8,212.56 Value Capital Vilue Total Loss 32.8 tS,176 $1,698 29.1 31.6 27.9 19.1 22.2 3,520 U.3U9 2,7U8 U.835 3,122 6,798 U3S2 3,667 3,217 2,829 6,062 3,326 3.1U9 2,838 1),387 U.060 3,572 U.773 6,517 U.893 3,852 3,079 U,3U3 3,130 2,67U 5,108 U.226 7,311* 3,316 7,910 3,852 3,U6 U.72O 3.3U7 3,287 U.5O2 5.879 3,1)26 2,386 3.6U7 1,025 2U.5 18.5 30.S 23.9 28.9 19.S 29.2 27.U 39.3 30.5 2U.U 31.7 28.8 39.3 17.5 19.B 33.0 33.2 30.U 35.8 2U.5 32.9 Ul.l 19.6 U2.S 28.8 32.0 23.3 30.9 2U.3 28.8 28.3 2U.U 3B.3 27.0 23.1 25.2 3U.7 28.2 23.8 25.9 27.6 20.6 16.5 20.9 The above schedule presents, In summary axiA In detail by States, the capitalisation and liquidation of all properties (original acquisitions and reacquisitions) involved in sales. 3,8U8 j«»wi U.388 3,156 3,9U5 S,U36 3,267 7,6U9 3,576 1.37U 766 925 692 1,666 606 1,119 770 617 1.18U 971 86U 1,116 l,3U0 990 1.13U 1,377 2.56U 85U 763 1,016 1,UUU 9U5 1,029 1,25U 1,390 3.00U 650 3,360 1,108 998 1,101 1,033 798 1,295 1,663 636 91S 983 733 2S 1,5U6 1,239 752 1,022 67U 1.25U 7U7 HOUR OWHBRS1 IHCOHB & AS OF JURE LOAN CORPORATION SCHEDULE 1 1 EXPENSE 30. 1951 EXPENSE INCOME V. S. 1 2 I _ 6 7 8 9 10 11 32 13 14 15 16 17 18 19 50 21 22 £ 25 26 27 28 29 30 31 32 s 35 36 37 38 39 Ifi ijl 42 s 1 I 45 J46 47 48 49 51 50 Ala. Aril. Ark. Calif. Colo. Conn. Del. Fla. 6a. Idaho 111. Ind. Iowa Kan. Ky. La. Maine Md. Mass. Mioh. Minn. Miss. Mo. Mont. Neb. Nev. N. H. N. J . N. 11. H. Y. N. C. N. D. Ohio Olda. Ore. Form. R. I . S. C. S. D. Term, Texas Utah Vt. Va. Wash. W. Va. Wlso. Ilyo. D. C. P. H. Hawaii Interest on Accounts Dividends S£L Assn's Dividends FS&LIC Property Income Other Inoome(3) Total Income $1,192,016,623 $44,745,479 $28,217,076 $138.00,669 #13,509,982 $1,417,134,830 14.742.555 5,822,243 6,866,111 48,586,053 8.1466,533 18,106,904 2,015,824 12,118,229 13,516,61(0 2,834,634 106,137,172 40,513.747 13,961,969 12.537.24U 9,230,036 14,570,951 2,624,004 17,796,460 44,178,319 89,54U,459 17,842,835 6,110,643 28,094.207 2,580,750 10,630,708 1,132,117 1,651,886 70,315,640 1,837,816 177,778,525 12,236,371 3.673.398 115,376,564 19.384,864 6,369.313 65.34U.533 10,049,038 4,921,806 4.064.882 11,967,368 38,222,383 198,471 186,248 273,558 5,119,835 600,905 526,294 380,220 145.765 44,592 54,973 8,925,947 1,517,999 14,043,013 13,232,829 8,1441.083 4U.594.973 1,889,328 4,577,633 61|2,9O6 396,178 2,093,640 847,069 391,142 3,252,687 1,512.876 371,553 1,080,334 606,391 1,304,477 42,887 860,739 871,188 707,175 1.395,274 100,193 1,384,482 55,404 151,258 39,000 717,009 30,864 3.807,397 559,427 159,591 4,197,982 439,904 739,557 1,370,646 49,525 264,821 72,975 1,286,775 1.454,437 728,354 5.688 606,507 1,763,603 606,023 1,725,309 180,971 4,125 909 336,403 136,382 161,121 1,129,386 195,U29 436,487 45.2U9 270.349 299,579 65.634 2,386,490 944,080 324.701 311.569 215,326 339.956 64.850 424.461 1,127.490 2,031.887 414,236 143,338 672,287 59,794 253,102 - 26,014 41,903 1,812,069 1*2,293 4,444,522 272.U40 88,247 2,656,^48 47L857 149.349 1,502,079 238,766 111,149 101,706 275,617 884,420 211,278 38.086 325,881 314.597 190,577 1,062.088 43.215 101,432 13.376 9,291 188,980 525,431 599,134 366,648 3.433.522 48,669 219,523 515,100 43.048 3.389.557 1,503,270 432,793 667,663 511,127 1,223,048 294,260 2,808,664 13,746,846 2,609,754 749,567 464,220 3,684,078 34,204 579.562 6,825 343,948 21,749,248 25.538 52.136,765 387.143 183,749 5.432,705 1,929,261 143,229 7,164,148 1.481,569 132,232 397.564 964.843 2,176,543 319.267 236,271 896,314 251,987 236,260 2,976,126 12,667 63,258 1.322 Bond interest prorated according to Average Balances Adm. & Gen, Expense prorated according to Average Number of Accounts Includes $2,24l,6li° Premiums on Sale of Loans The above schedule presents, in simmary and in detail by States, total income, expense, losses and resultant net profit or loss* 438,824 66,165 250,940 17.146 109.695 123.634 20,691 1.152.005 362.260 127.4U2 142,620 109,065 122,470 23,703 180,436 725,884 814,959 183,922 50,664 285,389 18.719 101,826 7,372 14,594 1.334,454 12,836 2,463.224 112,773 31,638 1.172,963 185.245 45,811 879.040 158,248 39.981 35.065 106,796 310.504 68,766 13,437 120,850 93.592 70.879 507.778 13.OO7 38.561 6,687 1.992 15,803,414 6,378,4U5 7,881,194 55,863,232 9,695,680 22,744,147 2,126,888 14,811,437 15,302,022 3.355.149 116,317,911 44,836,233 15,208,458 14,739,430 10,671,745 17,560,902 3,049,704 22,070,760 60,649,727 95.708,234 20,585,834 6,868,058 34,120,443 2,748,871 11,716,456 1,172,328 2.090.331 95.928.430 1.949.347 240.630.433 13.568.154 4.136.623 128,836.662 22,411.231 7.446,259 76,260.4l|6 11,977,146 5.469.989 4.672.192 14.601,399 43,048,286 10,253.612 1.611,481 15.991.565 15,656,608 9,544.822 50.866.274 2,139,188 4.784.999 661^291 408,370 Interest on BondF (1) $660,738,137 7.878.543 3.185.830 3,766,589 26,381,282 4.566,317 10,232,920 1.057.785 6,325.918 7,012,631 1,531,821 55,867,584 22,055,178 7.589.195 7,288,813 5,031,300 7.948,381 1.515.951 9,936,280 26,452,091 47.518,764 9,685,269 3,328,639 15,735,080 1.395.204 5.921.524 606,650 , 978,317 43,524,492 986,967 io4.494.4U3 6,377.486 2,062,617 62,101,339 11,025,111 3,486,270 35,187,457 5,592,180 2i598,346 2,376,485 6.4U9.008 20,663,280 4,932,462 899,214 7.621,565 7.343.473 4,456,386 4,855.151 1.007,999 2,372,271 313.652 216,628 Adm. & Gen. Expense (2) O29i.l4B7.8ll 5.063,073 1,548.780 3,055,763 12,985,469 2,5O9,4U7 3,878,138 505,993 3,708,300 4,317.751 1.142.4U2 17.503,173 10,293,899 4,433,647 5,274,374 2,689,785 4,608,488 1,196,669 4,661,937 10,676,890 16,098,821 4,976.215 2,951.114 7,41*2,361 1,083,391 3,775,960 368,120 630,654 16,180,051 860,907 33,332,260 3,889,967 1,332,684 23.340.0l6 6,912,037 2,036,375 19.006,808 2,028,687 1,893,335 1,525,484 4,271,681 ll,KL,lj27 2,840,217 562,228 4,103,196 4.946,915 2.785,824 9,340,132 622,694 650,656 344,624 168,952 Property Expense $112,826,733 247,634 219,739 285,488 879,902 276,519 2,082,526 28,038 264,580 415,945 39^036 3,011,423 l,04l,606 354,385 623,538 457,509 825,375 253,685 2,303,541 10,852,447 1,842.285 633.264 361,390 3,180,768 25,798 490,873 6,491 281,265 17,674.398 19,518 46,183,264 294,452 121,077 3.791,925 1,160,757 119,448 4,877,201 998,365 90,733 315.64U 743,292 1,407,000 310,843 159,871 592,947 • 279,877 146.396 2,189,620 12,172 45.103 781 Total Expense $1,065,052,681 13.189,249 4,954.349 7,107,840 40,246,653 7,352,283 16,193,584 1,591.816 10,298,798 11,746,327 2,713.299 76,382,180 33,390,683 12,377,227 13,186,725 8,178,594 13,382,244 2,966,305 16,901,758 47,981,428 65,459,870 15,294,748 6,641,143 26,358,209 2,504,393 10,188,357 981,261 1,890,236 76,378,941 1,867,392 184,009,967 10,561,905 '. 3.516.378 89,233.280 19,097,905 5,6142,093 59.071,466 8,619,232 4,582.414 4.217.613 11,462,981 33,201,707 8,091,521 1,621,313 12,317,708 12,570,265 7,388,606 36,384.903 1,642,865 3,068,030 659,057 385,580 $352,082,11(9 2,614,165 1,424.096 773.354 15,616,579 2,343.397 6,550,563 535.072 4.512.639 3.555.695 6U1.850 39,935,731 11,445,550 2,831,231 1,552,705 2,493,151 4,178,658 83,399 5,169,002 12,668,299 30,248,364 5,291,086 226,915 7,762,234 244,478 1,528,099 191,067 200,095 19,549,479 81,955 56,620,466 3,006,249 620,245 39.603,382 3.313,326 1,804,166 17,188,980 3,357,914 887.575 454.579 3,138.418 9,846,579 2,162,091 190,168 3.673.857 3.086.343 2,156,216 14.481.371 496,323 1.716,969 5.234 22,790 Total Losses Net Profit or Loss » $338,016,707 $14,065,442 3,224,820 1,317.496 1.320.215 5.239.588 . 899,787 4.078,557 189,276 1,539,961 1,403,174 353.689 10.924,071 6,516,206 2,604,831 6,686,514 2,091,024 2,375,927 779,530 4,834,709 26,497,394 6,233,711 2.216.4U5 1.397.034 9,966,729 329,256 4,349,333 66,644 596,695 42,503.496 133,328 117,062,166 1,811,373 1,272,326 13,881,909 6,445,973 752,758 14,002,576 2,463.963 540,296 1.790,623 2,242,885 6,154,012 1.580.673 610,821 2,641.412 1,606,209 798,154 11,270,821 94,986 300,014 23.305 12 610,655 106,600 546,861 10,376,991 1,4U3,61O 2.472,006 345.796 2.972,678 2,152.521 288,161 29,011,660 4.929,344 226,400 5,133,809 402,127 1,802,731 696,131 334,293 13,839,095 24,014.653 3,074,641 1.170.U9 2,204,495 84,778 2,821,234 124,423 396,600 22,954,017 60,441,700 1,194,876 652,081 25,721,473 3,132,647 1,051.408 3,186,404 893,951 347,279 1,336,044 895.533 3,692,567 581,418 420,653 i,032,4U5 1,480,134 1,358,062 3.210,550 401,337 1,416,955 18,071 22,778 SCHEDULE 12 HOME OWNERS' LOAN CORPORATION June 30, 1951 UNITED STATES MORTGAGE LOANS Transferred to Property Total Number l,O17,9lt8 Original amount. . . . $3,O93,U5l,321.Ol Advances: Taxes Insurance $ Paid or Assigned 19U,13U $785,001,151.20 823,8UU * $2,308,U50,169.81 62,137,2Hi.52 7li9,330.79 $BU7,Sb'7,696.bl 29,W2,Z3loOO . 121,29O,U87.71 5,775,996.96 $2,U35,516,65U.U« l£3,O95,22lult8 9, 2lt5, 858.39 Maintenance 5,018, 562 ,U* Miscellaneous. . . . 2,215,930.15 Foreclosure costs. . 3,822,126«77 Total advances . . . $ 1B3,U27,702.23 Interest converted . , 6,525,327«75 Gross amount $3,283,UOit,350*99 Repayments . . . . . . 2,46ij,692,832,73 Charged off 356,053.55 Balance 8l8,355,l*6h.71 818,355^61.71 2,U3!?,160,600.93 356,053.55 * Included 217 charge-offs. SCHEDULE 13 VENDEE ACCOUNTS Total Number Original amount of lien$ Advances: Transferred to Property Paid or Assigned I81t,lt75 688,Olt2,Olit7.98 U,007 12,191,68lo00 18O,U68 * 675,850,366*98 Taxes $ 8,077,810,96 Insurance 591,l8O.2U Maintenance 31(1,521*91 Miscellaneous. * . . 139,951.81; Foreclosure costs. . 99,217.15 Total advances . . . $ 9,2U9,6tf2.10 Interest converted . . 205,917.96 Gross amount 697,^97,6^»0U Repayments 686,759,990.53 Charged off 15,918.72 Balance .... J . . . 10,721,730.79 Ii62,l*12.99 11,59U.98 8,787,269.11 19U,322.98 60U,03l,9i>9.OY bWtOlbfOliO,?!, * Included ll* charge-offs. i,9U3,9i>0.10 10,721,730.79 15,918.72 SCHEDULE 1U HOME OWNERS' LOAN CORPORATION JUNE 30, 1951 UNITED STATES PROPERTIES ACQUIRED Total Number Original amount of loans . & Advances—Insurance. Taxes Maintenance Miscellaneous Foreclosure costs. _ Total advances ' Interest converted to principal _ Gross amount Less: Repayments of principal. . . . . . _ Unpaid principal balance Unpaid interest accruals _ Original amount of property accounts • • • _ Capital transactions: Charges—Insurance Taxes and assessments Reconditioning and capital repairs Miscellaneous Foreclosure costs _ Total capital charges _ Credits—Rents Collection of deficiencies. . . . Other . Total capital credits Sold Charged Off 198,200 15 797.O36.29U.5U ft2U.8U2.01 3,285,259.03 2U8.83 55,918,253.87 1,3U5.38 807,065.52 63.25 U77,939.07 2.025.609.U3 163.83 62,51U,126.92 1,821.29 758.U5O.5U 3.82 198,215 797,061,136.1 3,285,507.86 55,919,599.25 807,065.52 178,002.32 2.025.773.26 62,515,9U8.21 758.U5U.36 860,335,539.12 31.258.3U3.62 829,077,195.50 53.36O.8U5.69 882,U38,OU1.19 860,306,872.00 31.255.2UU.73 829,053,627.27 53.358.930.58 882,U12,557^85 26,667.12 3.098.89 23,568.23 1.915.11 25.U83-3U 187,289.91 3U,635,887.68 89,3U7,26U.17 2,3Ul,U6U.35 25.579.025.50 152.090.931.61 2,901,359.28 2,577,781.58 3.128.U09.83 8.607,550.69 187,302.72 3U,63U,807.27 89,3UU,85l.8U 2,3Ul,289.8l 25.578.090.38 152.O86.3U2TO2 2,901,359.28 2,577,781.58 3.126.161.83 8.605.302.69 -12.81 l,080.Ul 2,U12.33 17U.5U 935.12 Capital value of properties acquired . . . l,025,921,U22.11 1,025,893,597.18 27,82U.93 Sales prices Instalment sales—initial payments . . . extended terms . . . . Total instalment sales . . Cash sales Total sales price 93,698,U90.29 59U.3U3.557.69 688,OU2,OU7.98 U9.726.675.99 737,768,723.97 93,698,U90.29 59U.3U3.557.69 688,OU2,OU7«98 U9.713.U87.U9 737.755.535.U7 13, 188. .50 13, 188, .50 Capital loss . .' 288,l52,698.llt 288.138.061.71 1U, 636, -U3 Commission Sales expense Total commission and sales expense . . . . U3,556,795.2O .853.358.83 ,Uioa5IuO3 T£ U3,556,795.2O U.853.358.83 U8.U1P.15U.O3 Total property loss 336,562,852.17 336.5U8.2l5.7U Operating income and expense: Rental income Expense, «• Net operating income 138,6U5,66?.OO 112.826.733.00 s 25,818,936.00 u. 5 8 9 . 5 9 2 .2U8.OO 2 ,2U8.OO lU, 636.U3 ADDENDUM The statements in the foregoing report have been prepared to show the surplus operations June 13, 1933 to June 30, 1951, at which time operations had ceased. However, the Corporation's books remained open until December 31, 1951. The following reflects adjustments and payments into the Treasury of the United States. Surplus June 30, 1951 Add. : Surplus adjustments Over estimate of accounts payable (principally terminal leave assumed by other Government agencies) $ Under estimate of accounts receivable $14,065,441.76 2,781.17 365. 71 3,146.88 Surplus December 31, 1951 $14,068,588.64 Deduct: Disposition of Surplus Paid into Treasury of the United States May 25, 1951 $13,800,000.00 December 26, 1951 193, 588. 64 $13,993,588.64 Transfer to Home Loan Bank Board October 1951 for final liquidation (Independent Offices Appropriation Act 8/31/51) 75,000.00 $14,068,588.64 HF1-1UI, HutlHtK, I. C.
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