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FEDERAL HOME LOAN BANK V Washington, December 1941 CONTENTS FOR DECEMBER • 1941 ARTICLES FEDERAL Page S U R V E Y OF H O U S I N G AND M O R T G A G E F I N A N C E . . . 71 Lending operations during t h e emergency—Interest rates a n d reserve policies—Approaching boom conditions—Growing importance of public housing—Improved home mortgage s t r u c t u r e . HOME T O T A L SAVINGS AND L O A N A S S E T S R I S E F O R T H E F I R S T T I M E I N T E N Y E A R S . LOAN P R E P A Y M E N T S ON L O A N A C C O U N T S — A T I M E L Y D E V I C E BANK 77 Present need for encouragement of p r e p a y m e n t s — C h a n g i n g a t t i t u d e in regard to p r e p a y m e n t s — H o w two p r e p a y m e n t plans were developed— Technique a n d procedure—Experience to date—Some basic considerations. P R O P E R F I L I N G SYSTEMS C O N T R I B U T E TO O P E R A T I N G E F F I C I E N C Y . T h e importance of orderly records—Description docket. REVIEW MONTHLY Published Monthly by the John H, Fahey, Chairman T. D. Webb, Vice Chairman F. W. Catlett W, H, Husband F, W. Hancock, Jr. 82 of t h e illustrated SURVEY Highlights a n d s u m m a r y FEDERAL HOME LOAN BANK BOARD 74 T h e ' t u r n i n g point is reached—Liquidity position shows improvement— Winston-Salem District records the greatest gains—Four-fifths of all assets now in Bank S y s t e m — T h e process of consolidation continues. 85 86 86 General business conditions Residential construction Building costs New mortgage-lending activity of savings a n d loan associations Mortgage recordings Foreclosures Federal savings a n d loan associations Federal Savings a n d Loan Insurance Corporation Federal H o m e Loan Bank System 87 87 89 89 89 STATISTICAL TABLES FEDERAL HOME LOAN BANK SYSTEM FEDERAL SAVINGS AND LOAN ASSOCIATIONS New family dwelling units—Building costs—Savings a n d loan lending—Mortgage recordings—Total nonfarm foreclosures—HOLC properties—Insured savings a n d loan associations—Federal H o m e Loan Bank a d v a n c e s — G o v e r n m e n t inv e s t m e n t s in savings a n d loan associations—Private long-term savings . . . 90-99 FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION REPORTS HOME OWNERS' LOAN CORPORATION Defense diary F r o m t h e m o n t h ' s news Vol. 8 No. 3 Directory of member, Federal, a n d insured institutions added during O c t o b e r November 70 81 100 SUBSCRIPTION P R I C E OF REVIEW. The FEDERAL HOME LOAN BANK REVIEW is the Board's medium of communication with member institutions of the Fed eral Home Loan Bank System and is the only official organ or periodical publication of the Board. The REVIEW will be sent to all member institutions without charge, To others the annual subscription price, which covers the cost of paper and printing, is $1. Single copies will be sold at 10 cents. Outside of the United States, Canada, Mexico, and the insular possessions, subscription price is $1.60; single copies, 15 cents. Subscriptions should be sent to and copies ordered from Superintendent of Documents, Government Printing Office, Washington, D. C. APPROVED BY T H E BUREAU OF T H E B U D G E T 428719—41 1 Associations Assist Builders and Home Owners in Priority Matters The general uncertainty surrounding the issuance of priority ratings for building materials opens a way for savings and loan associations to render assistance to builders and prospective home owners and at the same time assure themselves that home building will not decline because of a lack of knowledge concerning Governmental priority regulations. Builders and home seekers alike are hesitating to undertake new construction because information on priority procedures and regulations is either incomplete or uncertain. Many projects may be eligible to receive ratings and could be undertaken if the builder were aware of the proper course to pursue. Savings and loan managers can perform a valuable service in this regard. Several associations have found it worth while to designate an employee to assemble priority forms and regulations. It is his duty to advise contractors just what they can build and to assist them in completing the proper forms. Once the material is obtained and the service set up, the maintenance time it requires is a small factor when compared to the advantages it renders both the builder and the association. * * * * * Dollars for Defense Sales of defense savings bonds, Series E, F, and G, reached a grand total of $2,008,611,000 at the end of November. This 7-month total compares with a 3-month total of $1,006,477,000 at the end of July. The amount of Series E bonds alone sold during the first 7 months of the campaign was $803,576,000—equivalent to 40 percent of the total sales. Using 5-month totals as a basis, 25 percent of the total of Series E bonds was sold in Bank District Number 2-— New York State and New Jersey. This was the largest percentage sold in any District. The second largest percentage, almost 12, was sold in District Number 7 which comprises the States of Illinois and Wisconsin. 70 Series F and G bonds represented $1,205,035,000 of the aggregate total at the end of November. It is interesting to note that more Series F and G bonds were sold in May, the first month they were issued, than in any succeeding month; while the greatest volume of Series E bonds was sold in July. Copper Restrictions Eased The original copper conservation order which prohibited the use of copper as a building material after November 1 was recently amended by OPM to allow the manufacture of these products until January 1, 1942, and the sale and use for building of strip, sheet, and screen copper on hand after that date until the supplies are exhausted. Until January 1, manufacturers will be allowed to consume about 70 percent of the copper they used in the 1940 base period. * * * * Installment Credit Regulations Clarified Credit to finance or refinance the construction or purchase of an entire structure has now been completely exempted from the provisions of Regulation W which was issued by the Board of Governors of the Federal Reserve System early in the Fall. The original text of the regulation excluded loans secured by first mortgages; and the status of junior mortgages has now been clarified by the provisions of Amendment No. 2 which became effective on December 1. In general, the provisions of Amendment No. 2 have broadened the scope of installment credit regulation and have made its provisions more stringent. The rules now include loans made for the purpose of purchasing articles listed in the original statement, as well as to loans secured by these items. Further, the 18-month maximum maturity now applies to loans up to $1,500 instead of the $l,000-limit previously designated. For modernization loans, however, the figure was left at $1,000. According to the Federal Reserve Bulletin, it seemed undesirable to impose any further restrictions on the financing of repairs and improvements to old properties, particularly since much of the material and labor entering into such work are not scarce or needed in the defense program. The procedures under this provision have also recently been simplified. Application forms for exceptions from Regulation W are available at any Federal Reserve Bank or branch and are entitled "Application for Designation for Remodeling or Rehabilitation as Defense Housing for Exception under Regulation W." In addition, a form entitled "Information Regarding Material and Equipment Entering into Defense Housing Remodeling and Rehabilitation" is to be submitted if priority assistance is needed. * * * * * Meeting of the Advisory Council Defense housing and priorities were in the center of discussion at the semiannual meeting of the Federal Savings and Loan Advisory Council early in November in Washington, D. C. Among others, Donald M. Nelson, Executive Director of the Supply Priorities and Allocations Board, and Charles F. Palmer, Defense Housing Coordinator, addressed the Council on these two vital subjects. The maintenance of private building and the rehabilitation of homes with private funds were stressed as being of tremendous importance in aiding the program for defense "housing. Dovetailed with this was the subject of priorities and its further refinement— allocations. It was reported that by the end of October about 60,000 applications by builders for priority assistance had been approved. * * * * * Fair Rent Committees are N o w Operating in Almost 1 4 0 Cities Citizens' committees organized to help maintain fair rents in defense areas have now been set up in 138 communities spread over 28 individual States. More than 1,400 patriotic citizens are volunteering their services to act as committee members in these cooperative attempts to prevent rent increases beyond amounts justifiable by advances in maintenance costs. Federal Home Loan Bank Review SURVEY OF HOUSING AND MORTGAGE FINANCE The Ninth Annual Report of the Federal Home Loan Bank Board, to be published shortly, includes an extensive discussion of homefinancing policies during the present emergency. This article presents the gist of the Board's observations and summarizes the analysis of trends in thrift and home finance. • AS our economic activity is rapidly being diverted to the primary defense needs of the country, home-financing institutions face a new and difficult problem. On the one hand, they are confronted with an emergent need for their facilities, a need which is not the result of normal market factors but rather the consequence of conditions attendant upon the defense program. On the other hand, there loom all the uncertainties as to the longrange character of the risks they are expected to assume, indeed uncertainty as to the whole future turn of events. Their task is to cooperate to the greatest possible extent in doing their share of the defense effort. The difficulty arises in trying to avoid that indefinable lending area where extension of credit will result in unsound debt and future trouble. For the guidance of private mortgage-lending institutions in this critical period, the forthcoming Ninth Annual Report of the Federal Home Loan Bank Board, 1 covering the fiscal year ending June 30, 1941, develops a broad outline of lending policies in the present emergency. In addition to the Report's analysis of pertinent trends in the fields of thrift and home finance during the past fiscal year, this discussion of lending policies will be of particular interest to savings and loan executives. LENDING OPERATIONS D U R I N G THE EMERGENCY Although no hard and fast rules can be set up, the Report states, it is possible to avoid serious future consequences if proper attention is given to certain safeguards which should, at this time more than ever, be carefully followed by lending institutions. Thus, it is particularly important that every savings and i As soon as the report is printed, copies may be purchased from the Superintendent of Documents, Government Printing Office, Washington, D. C. Member institutions of the Federal Home Loan Bank System receive the Report free of charge. December 1941 INDEX OF NEW MORTGAGE LENDING ALL SAVINGS AND LOAN ASSOCIATIONS UNITED STATES-BY MONTHS 1935-1939 « 100 ADJUSTED 1OR SEASONAl • i VARIATION f®°\ A\ SEP OEC. f- J ll rOjv^**I..i.. M I M I M I M FEDERAL HOME LOW SOUK BOAHO Since the middle of 1938 mortgage-lending activity by savings and loan associations has shown a rapid expansion. Last summer the volume of new loans made v these institutions was almost twice as large as in the summer of 1938—only 3 years ago. By removing certain obscurities resulting from seasonal fluctuations, the index in the chart shows with greater clarity than do monthly statistics the steady upward trend in lending operations of savings and loan associations. loan association carefully inspect the type of construction which it intends to finance. The jerrybuilding of past decades has been the cause of substantial losses suffered by financial institutions in periods of deflated values. The urgent need of the present day is no excuse for shoddy and unsound construction which has in the long run usually proved to be the most expensive type of building. Careful, scientific appraisal will similarly ward off much future trouble. I t is essential that the relationship between loan amount and appraised value of mortgage security be accurately determined. The credit rating of prospective borrowers should be carefully analyzed to avoid a repetition of the unsound lending which had such tragic effects both on overhoused borrowers and on financial institutions after the last real-estate collapse. The report calls attention to the importance of studying neighborhood trends, for there is a growing 71 realization that security values represented by investments in real estate are determined to a high degree by the character of the locality in which the property is situated. Real estate is by its nature an immovable commodity and many sound structures are suffering from encroachments of blighted areas. The operations of mortgage-lending institutions in the present market require the closest possible attention to risk analysis. Increasing competition, for example, although healthy in many respects, does give rise to the danger that some institutions, in their efforts to attract mortgage loans, may accept too many marginal risks for future safety. The steady trend during the past few years toward lower downpayments and longer amortization periods has eased the burden of home ownership, b u t there is no denying the fact that this development has placed a greater responsibility on home-financing institutions to make careful appraisals of the mortgage investments in which they are placing the savings funds entrusted to them. I N T E R E S T R A T E S AND R E S E R V E P O L I C I E S In general, the Annual Report advocates the establishment of both dividend and interest rates at levels which will enable institutions to (1) secure an adequate flow of savings funds, (2) invest those funds in sound mortgage security, and (3) leave a sufficient spread to meet normal business expenses and provide adequate reserves against future losses. NUMBER OF NEW NONFARM DWELLING UNITS B U I U BY TYPE OF DWELLING; 1921 - 1 9 4 0 m iTlr APARTMENTS m 600 500 rw „ tTWO^FAMILYJ 1 400 m T~~rPfflc APPROACHING BOOM CONDITIONS "PH Hnn The above chart shows the trend of residential construction during the past two decades and the proportion of single-family homes, 2-family houses, and multifamily dwellings to the total. During the recent recovery of building activity the single-family house has had a more prominent position than during the building boom of the 20's. 72 Variable interest rates are recommended by the Board to make it possible for associations to gear their lending operations to market demands and obtain a diversified portfolio on which earnings are more closely related to the degree of risk involved. The Board has urged institutions to treat all borrowers equitably by refinancing old loans on more realistic terms in order to maintain the good will of borrowers and protect portfolios against useless raiding. The direct relationship between the cost of money and mortgage interest rates has been emphasized and wherever dividend rates are uneconomically high, the Board seeks to influence associations to reduce rates to competitive levels. Experience has proved that the rate of return, provided it is not so low that thrift goes completely unrewarded, is of less importance to prospective savers than safety of principal. One of the best safeguards which any lending institution can employ is an adequate and systematic reserve policy. Too little attention has been paid in times past to the importance of reserves in the savings and loan industry. The Federal Home Loan Bank Board in cooperation with the Presidents of the Federal Home Loan Banks, State supervisory officials, and leaders of the industry have for some time urged in the strongest possible terms the necessity of providing now for losses which may have to be taken in the future. Statutory requirements for minimum reserve allocations should be considered the irreducible figure and wherever possible more substantial transfers should be made. The savings and loan associations which err on the side of generosity in their reserve policy have everything to gain and nothing to lose in the process; and the same is true for the long-term investors in these institutions. There is no problem of dividend payments on reserve accounts. If an amount equivalent to reserves is invested in low-rate investments convertible into cash, the liquidity position of the association is considerably enhanced. I t is a matter of common knowledge that times of high activity, more than any other period, generate hazards which ultimately result in trouble and losses to financial institutions. I t is in such times that executives will to their advantage stop to think about the basic operating policies outlined above. The Annual Report, in its "Survey of Housing and Mortgage Finance," demonstrates that approaching Federal Home Loan Bank Review "boom" conditions marked the fiscal year in most lines of economic activity, including the fields of savings, home construction, and home finance. During the period July 1, 1940 to June 30, 1941, construction was started on approximately 616,000 nonfarm dwelling units, with an estimated permit valuation of $2,136,800,000. Compared with the previous fiscal-year period, these figures show a gain of 27 percent in number and 29 percent in dollar amount. Home-mortgage lending activity reached a new 10-year high. Except for a brief period during the Fall of 1940, the flow of savings into financial institutions continued at a high level. The realestate market as a whole showed significant signs of improvement. The volume of real estate owned by financial institutions declined to such an extent that the "overhang" of repossessed properties, which for the past several years has been a serious drag on the market, no longer represents a major problem except in a few scattered areas. The stimulus given to the whole economic system by the national defense program has undoubtedly accounted for a substantial portion of this increased activity. On the other hand, contraction of normal activities through shortages had not yet come to the fore at the closing date of the Report, June 30, 1941. GROWING IMPORTANCE OF P U B L I C HOUSING The effects of the defense program have been most clearly visible in the public-housing field. During the fiscal year 1941, the number of family units provided in nonfarm areas through public funds amounted to 105,788, or nearly twice the previous record set during the 1940 fiscal year, and comprised 17 percent of total residential-building activity. Of the publicly financed units, 63,767, or 60 percent, represented defense housing placed under construction in localities wdiere the preparedness program necessitated additional housing facilities. The remainder was made up by slum-clearance projects. While these figures show the direct result of the defense emergency on public housing, they indicate only one part of the story. The substantial gain in private building over the volume registered during the 1940 fiscal year, amounting to 84,454 units, or 20 percent, was also brought about in large measure by the urgent need for additional housing facilities in defense localities. The single-family home maintained and even improved its predominant position in the total housing supply. Approximately 81 percent of the total nonfarm family units built in the fiscal year 1941 was in December 1941 INCREASE IN RESIDENTIAL CONSTRUCTION BY SIZE OF COMMUNITY - FISCAL YEAR 1941 PERCENT 20 INCREASE TOTAL NONFARM 500,000 and over 50,000-500,000 2,500-50,000 R'^AL NONFARM This chart illustrates the percent increase in residential construction during the fiscal year 1941 for communities of four different size groups. The smaller the community, the larger was the relative gain in construction activity. This finding concurs with Census results which show that during the 30's the heaviest population increases were in the smaller communities. dwellings of this type as compared with 78 percent during the preceding fiscal period. The gain over that period was 32 percent for single-family houses, 29 percent for two-family structures, and only 2 percent for multifamily dwellings. This continued preference for the single-family home, coupled with the fact that the largest increases in building activity were found in the smaller communities (see the chart in this column), should give encouragement to savings and loan associations; for they specialize in the financing of small homes and many of them are located in communities of moderate size. IMPROVED H O M E - M O R T G A G E STRUCTURE Commenting on the rapid rise in the homemortgage debt during the past few years, the Report points out that the steady increase in the volume of debt thus far has given no particular cause for concern. The purchase of a home represents the largest investment ever made by the majority of the consuming public and is seldom in the form of a cash transaction. Without financial assistance from mortgage-lending institutions, widespread home ownership would be a practical impossibility. More important than the absolute volume of debt outstanding at any time is the soundness of the debt structure. The mortgage debt structure of the 20's was basically unsound in many respects as depression experience only too clearly emphasized. During the period of boom conditions after the last war, real estate was often overpriced, there was widespread and unsound speculation, inadequate attention was given to property appraisal and credit examination, (Continued on p. 80) 73 TOTAL SAVINGS AND LOAN ASSETS RISE FOR THE FIRST TIME IN TEN YEARS Preliminary estimates of the assets of all operating savings and loan associations at the end of 1940 point to the first year-to-year increase since 7930. Substantial gains in private capital, mortgage investments, and cash holdings, together with a 30-percent drop in real estate owned, featured 1940 trends in the savings and loan industry. • T H E savings and loan industry passed a significant milestone during the course of its 1940 operations when, for the first time since 1930, its year-end assets were greater than at the close of the previous year. Preliminary estimates of the Division of Research and Statistics reveal that the total assets of all operating institutions of the savings and loan type at the end of 1940 exceeded $5,680,000,000—a net gain of $157,000,000 during the 12month period in spite of the elimination of more than 500 associations through the process of merger, consolidation, and liquidation. As has often been pointed out, the full effects of the abnormal real-estate and general business conditions of the late Twenties and early Thirties were not felt by the savings and loan industry until considerably after the same reactions had been evident in other fields. The peak of savings and loan book assets was reached in 1930, and throughout the past decade the trend was steadily downward, even though at a slackened pace since 1936. Although a substantial recovery has been enjoyed by the vast majority of full-time, active associations, it has not been fully apparent in figures on total assets because of the liquidation and merger of weaker associations—a rehabilitation process carried forward to strengthen the foundations of the entire industry. Outstanding among the changes in specific asset items was the increase in the mortgage-loan portfolios of savings and loan associations. Already the largest institutional holder of home-mortgage loans, these institutions added approximately $312,000,000 to their holdings during the year. This 8-percent gain was almost double the amount added to this account during the previous year. Reflecting the generally improved real-estate conditions, and a determined effort on the part of many T H E TURNING P O I N T IS REACHED During 1940 this trend was reversed and the total assets of all operating associations increased approximately 3 percent from $5,524,000,000 at the close of 1939 to $5,682,000,000 at the end of last December. This gain during the year may be contrasted with a small net decline in the previous 12-month period; and in view of the drop in the number of active institutions from 7,719 to 7,189 it is logical to assume that the actual gain of the remaining institutions was much greater than the " n e t " figures indicate. 74 This chart shows the trend of the total assets of all savings and loan associations since their all-time peak reached in 1930. The initial upturn registered during 1940 is evident, following a leveling-off period from 1935-1939. The predominant position of members of the Federal Home Loan Bank System in the industry as a whole is indicated by the fact that almost 80 percent of the aggregate resources of all operating associations at the end of 1940 was included in the Bank membership. Federal Home Loan Bank Review savings and loan executives, the amount of real estate owned by all savings and loan associations showed a net decline of almost $200,000,000, or about 30 percent of the balance on hand at the beginning of the year. I t is not possible to conclude, however, that all of these properties have been removed from the total real-estate "overhang" inasmuch as part of this reduction was the result of associations being transferred from an "active" to a "liquidating" status. Real estate owned by all operating savings and loan associations accounted for less than 9 percent of their total assets, as against a similar ratio of more than 12 percent a year previous. Furthermore, the total reserves, undivided profits, surplus, and guaranty stock of these institutions were approximately equal to the book value of the real estate which was still in the hands of the associations at the end of 1940. A $16,000,000-increase in the balance of the real estate sold on contract account provides additional evidence of the wide acceptance accorded this method of selling properties. LIQUIDITY POSITION SHOWS IMPROVEMENT Increased emphasis by savings and loan associations on the maintenance of an adequate liquidity position is indicated by the 13-percent growth in their cash holdings. At the end of 1940 liquid resources in the form of cash aggregated more than $300,000,000, or better than 5 percent of the total association assets. Changes on the liability side of the ledgers were less marked, with the exception of a gain of more than $158,000,000 in funds invested in these institutions. A slight increase in the amount of borrowed money was reflected in the gain in advances made by the various Federal Home Loan Banks;,aiuLa small, rise was noted in the loans-in-process account. Table 7.—Comparative statement of condition for all operating savings and loan associations in the United States, 1940 and 1939 [Source: Annual reports of State savings a n d loan supervisors—Summary of m e m b e r s ' annual reports as consolidated by Federal H o m e Loan B a n k presidents] [Amounts are shown in t h o u s a n d s of dollars] All operating associations 1 Ratio to t o t a l assets Increase or decrease 1940 to 1939 Item ASSETS Mortgage loans 2 Other loans Real estate sold on contract Real estate owned Investments Cash Office building F u r n i t u r e and fixtures Other assets T o t a l assets 1940 (7,189) 1939 (7,719) $4, 388, 953 64, 712 208, 702 486, 910 148, 958 300, 660 54, 488 5,636 22, 564 $4, 077, 161 61, 664 192, 419 680, 857 151, 008 267, 021 55, 425 5,312 33, 470 5, 681, 583 5, 524, 337 1940 1939 Percent Percent Amount Percent change 77.25 1. 14 3.67 8.57 2. 62 5.29 0.96 0. 10 0.40 73. 80 1. 12 3.48 12. 33 2. 73 4. 83 1.00 0. 10 0. 61 + $311, 792 + 3,048 + 1 6 , 283 - 1 9 3 , 947 -2,050 + 33,639 -937 + 324 - 1 0 , 906 + 7.65 + 4.94 + 8.46 - 2 9 . 49 -1.36 + 12.60 -1.69 + 6. 10 - 3 2 . 58 100. 00 100. 00 + 157,246 + 2.85 187 809 494 195 732 112 808 77. 78 6.50 4. 18 1. 18 1.81 0. 55 8.00 77.23 6. 59 4.08 0.89 2. 13 0.58 8.50 $152,862 + 5,579 + 12,019 + 18,059 - 1 5 , 174 -787 -15,312 + 3.58 + 1.53 + 5.33 + 36. 71 -12.89 - 2 . 45 -3.26 5, 524, 337 100. 00 100. 00 + 157,246 + 2.85 LIABILITIES AND CAPITAL Shares Deposits and investment certificates Borrowed money Incomplete loans Other liabilities 3 P e r m a n e n t reserve, a n d g u a r a n t y stock General reserves, undivided profits and surplus T o t a l liabilities and capital $4, 419, 369, 237, 67, 102, 31, 454, 049 388 513 254 558 325 496 5, 681, 583 $4, 266, 363, 225, 49, 117, 32, 469, 1 Excludes State-chartered associations in liquidation (both voluntary and involuntary) when status is so reported in t h e State supervisors' reports or by other reliable sources. 2 Includes advances and accrued receivables, t h e latter principally interest due on mortgages. 3 Includes deferred credits and specific reserves. Decemfcer 1941 75 Table 2.—Estimated number and amount of assets held by operating savings and loan associations, 1940-1939 [Amounts are shown in thousands of dollars] Number Assets Federal H o m e Loan B a n k District 1940 1939 UNITED No. No. No. No. No. No. No. No. No. No. No. No. STATES._ 1940 1939 7, 189 7,719 $5, 681, 583 $5, 524, 337 1—Boston. 654, 097 354 357 2—New York 856, 537 1,261 1,494 501, 478 3—Pittsburgh 1,503 1,693 576, 954 4—Winston-Salem__ 686 705 5—Cincinnati 895 915 1, 007, 028 300, 134 326 326 6—Indianapolis 530, 268 7—Chicago _ _ 799 835 289, 136 8—Des Moines_ _ 394 404 235, 700 317 9—Little Rock 316 243, 926 10—Topeka • 308 316 169, 346 166 162 11—Portland__ ___ 316, 979 191 12—Los Angeles 185 625, 966, 519, 497, 967, 276, 518, 261, 218, 235, 152, 286, 246 048 592 317 249 239 652 245 039 144 585 981 General reserves and undivided profits were about 3 percent below the level at the end of 1939— primarily as a result of absorbing the losses incurred in the sale of a sizeable volume of real estate owned. In spite of this small decline, the ratio of general reserves and undivided profits remained at approximately 8 percent of total assets, or equal to more than $1 of reserves for every $10 of outstanding mortgage loans. With a few notable exceptions, the ratios of the various asset and liability accounts to the total resources of the associations showed little change. The mortgage-loan account made up more than 77 percent of the total assets at the end of 1940, in contrast to only 74 percent in the previous year, and 70 percent in 1938. The proportion of the realestate-owned account, on the other hand, has grown steadily smaller dropping from 16 percent of total assets in 1938 to only 8 percent according to the latest report. The ratios of cash and share investments showed slight increases, and all other fluctuations were fractional. WINSTON-SALEM RECORDS THE GREATEST GAINS On the basis of Federal Home Loan Bank Districts as shown in Table 2, the Winston-Salem region recorded the largest dollar and percentage gains in total resources during 1940. Associations in this District added nearly $80,000,000, or 16 percent, to their assets; and institutions in three other regions showed gains of 10 percent or more. 76 Only two Districts, New York and Pittsburgh, indicated a smaller volume of resources and this is easily accounted for by the fact that rehabilitation programs are still operating at full tilt in these areas. More than 400 associations throughout New York, New Jersey, Pennsylvania, West Virginia, and Delaware were removed from the list of active institutions during the year—approximately 80 percent of the net decline in the number of active associations in the entire country. Total assets in the Cincinnati District exceeded the $ 1,000,000,000-mark and this area, together with the New York District, accounted for almost onethird of the aggregate assets of the savings and loan industry. In spite of a decline of almost 200 in the number of active associations during the year, the Pittsburgh District continued to have the greatest number of operating institutions. F O U R - F I F T H S OF ALL ASSETS NOW IN B A N K SYSTEM Savings and loan members of the Federal Home Loan Bank System continued to increase their proportion of the total resources of the savings and loan industry. At the end of 1940, the membership (Continued on p. 80) Table 3.—Estimated number and amount of assets held by liquidating l savings and loan associations, 1940-1939 [Amounts are shown in thousands of dollars] Number Assets Federal H o m e Loan Bank District UNITED STATES. No. No. No. No. No. No. No. No. No. No. No. No. 1940 1939 2,794 2,578 1 1—Boston •_ __ 395 2—New York 1,374 3—Pittsburgh 4—Winston-Salem_ 431 66 5—Cincinnati 90 6—Indianapolis 7—Chicago .. 277 M6 8—Des Moines 9—Little Rock 49 34 10—Topeka 8 11—Portland 12—Los Angeles. __ 23 2 1 285 1 , 281 451 63 2 90 250 3 31 57 43 8 18 1939 1940 $455, 115 $404, 814 4 120, 486 122, 435 20, 057 38, 946 23, 184 50, 768 3 10, 587 10, 676 2,370 1,201 54, 401 4 115,329 90, 582 21,912 41, 543 2 29, 395 27, 724 312, 854 12, 127 2,712 632 50, 000 2 1 Approximated from best available information included in 2State supervisors' reports and other reliable sources. Includes 17 Pennsylvania associations and 4 Indiana associations operating under restrictions. 3 Includes for Missouri, in addition to assets of liquidating associations, the liquidating portion of the assets of 10 operating associations in 1939 and 11 in 1940. Federal Home Loan Bank Review PREPAYMENTS ON LOAN ACCOUNTS— A TIMELY DEVICE Should savings and loan associations encourage prepayments by borrowers at the present time, with a view toward increasing the margin of safety in their loans? Discussion of the background, technique, and results of prepayment plans operated by two associations for a number of years will be helpful to executives who are considering this question. • R E V I E W I N G their operating policies in the light of the present emergency, savings and loan executives are paying increased attention to the encouragement of prepayments on their mortgageloan accounts. Now that family incomes in many sections are at a high level, the argument runs, large numbers of home owners are in a position to reduce their indebtedness at an accelerated rate. While under ordinary circumstances mortgage-lending institutions may look askance upon too rapid a liquidation of their mortgage portfolio, this consideration is felt to be subordinate to the compelling reasons for a stimulation of prepayments at the present time. P R E S E N T N E E D FOR ENCOURAGEMENT OF P R E PAYMENTS New loans to defense workers and others, even though made on conservative terms, will inevitably be based to some extent upon present incomes, the stability of which is none too certain. Accelerated payments during the defense boom will help these borrowers to build up a reserve against delinquency in the " emergency after the emergency'' when they might be unable to meet their obligations under the loan contract. The same is true for many existing borrowers who are now enjoying higher earnings but will face a difficult problem of readjustment when the defense boom is over and the day of reckoning nears. In either case, accumulated prepayments would provide a cushion against shocks if and when they come; and if these shocks do not come, both the borrower and the lender stand to benefit, the one from increased savings, and the other from safer mortgage loans. Many savings and loan executives believe that loss of employment and reduction of incomes account for more mortgage delinquencies than do such factors as sickness, death, or changing property December 1941 428719—41 values. Ability to reduce the payments of borrowers in distress, without jeopardizing the soundness of their loans, may prove a protection to mortgage portfolios in a period of unemployment such as we experienced in the last depression. CHANGING ATTITUDE IN REGARD TO PREPAYMENTS Past practices in regard to prepayments have varied widely among mortgage-lending institutions. Some lenders have placed penalties on accelerated debt reduction. Some others have permitted it under certain restrictions, accepting, for example, units of $100 or full extra monthly payments and these only in certain intervals. Rarely were prepayments considered as a reserve available for future regular loan installments if the borrowers became delinquent. In some instances, savings and loan associations have encouraged share investments by borrowers who desire to make extra payments. Such investments, however, are withdrawable for any purpose and represent no direct protection of the mortgage loan from the lender's point of view; nor do these investments assure the continued enjoyment of home ownership from the standpoint of the borrower. In ordinary times, home-financing institutions can afford to handle prepayments in a more or less casual manner on a case basis. Under present conditions which magnify the need for accelerated debt liquidation, definite policies and procedures are desirable. In view of this need, it is interesting to find that at least two savings and loan associations, the Benj. Franklin Federal Savings and Loan Association of Portland, Oregon, 1 and the First Federal Savings and Loan Association of Toledo, Ohio, have for some time been executing systematic plans for the stimulation J The plan used by this association is copyrighted 77 2 of prepayments. The background, technique, and results of these plans are of interest at the present moment. How Two PREPAYMENT PLANS W E R E DEVELOPED Independent of each other and purely on the basis of business considerations, the two associations developed prepayment procedures before a defense boom was even suspected, and they have been operating under these systems for 4 and 3 years, respectively. Monthly payments and reserve protection under a Reserve Protection Clause [Based on a $1,000 loan at 5 percent interest with a contractual maturity of 12 years; extra payment is equal to 20 percent of contractual payment] Regular loan p l a n $9.25 per m o n t h After PrinciYrs. Mos. Interest pal Balance Reserve p r o t e c t i o n p l a n $11.10 per m o n t h I n t e r e s t Principal Balance Reserve protection 1 2 3 4 5 6 7 8 9 10 11 0 $4.17 4.15 4.12 4.10 4.08 4.06 4.04 4.02 3.99 3.97 3.95 3.93 $5.08 5.10 5.13 5.15 5.17 5.19 5.21 5.23 5.26 5.28 5.30 5.32 $994.92 989.82 984. 69 979. 54 974.37 969.18 963.97 958.74 953. 48 948. 20 942.90 937. 58 $4.17 4.14 4.11 4.08 4.05 4.02 3.99 3.96 3.93 3.90 3.87 3.84 $6.93 6.96 6.99 7.02 7.05 7.08 7.11 7.14 7.17 7.20 7.23 7.26 $993.07 986.11 979.12 972.10 965.05 957.97 950.86 943. 72 936.55 929.35 922.12 914. 86 1 7 1 7 1 7 3.91 3.77 5.34 5.48 932.24 899. 70 3.81 3.63 7.29 7.47 907. 57 863. 20 $24.67 3.63 3.49 5.62 5.76 866.35 832.16 3.44 3.25 7.66 7.85 817. 71 771.08 48.64 3.35 3.20 5.90 6.05 797.10 761.16 3.05 2.85 8.05 8.25 723. 26 674. 24 73.84 1 7 1 7 3.04 2.89 6.21 6.36 724. 31 686. 53 2.64 2.42 8.46 8.68 623.98 572. 44 100.33 2.73 2.56 6.52 6.69 647. 79 608.07 2.20 1.98 8.90 9.12 519. 61 465.45 128.18 2.39 2.22 6.86 7.03 567. 35 525.61 1.75 1.51 9.35 9.59 409.91 352.97 157.44 7 7 1 7 1 7 2.04 1.86 7.21 7.39 482.80 438.91 1.27 1.02 9.83 10.08 294. 59 234. 74 188. 21 8 8 1 7 1.67 1.48 7.58 7.77 393. 92 347. 79 .77 .50 10.33 10.60 173. 38 110. 46 220. 54 9 9 9 1.29 1.12 1.08 7.96 8.13 8.17 300.50 260.18 252.01 .24 .01 10.86 2.05 45.96 Fully paid 254. 54 260.18 10 10 11 11 1 6 7 1 7 1 7 .88 .67 .45 .23 8.37 8.58 8.80 9.02 202. 30 151.33 99.07 45.49 12 0 .04 9.02 Fully paid 1 1 1 2 2 3 3 4 4 5 5 6 6 I n t e r e st saving u n d e r R e serve P r o tecti on Clailse i n t h s case is $75.^15 per ea ch t h o u s a a d dollars of lo a n . The plans were motivated by the desire to protect lenders and borrowers alike against a recurrence of wholesale foreclosures such as swept the country during the last depression, and were designed to remove the fear complex that prevents many prospective home owners from incurring long-term 78 obligations. In addition, both associations were searching for a distinctive feature in their lending program, a feature which could not be offered by distant lenders who necessarily employ more or less rigid schedules and practices and are, therefore, unable to maintain personal relationships with their borrowers. In either case the plans have been used intensively as business builders and have been emphasized in advertising programs and personal contacts with prospective customers. In fact, one association reports that the prepayment feature is " the strongest single talking point" in mortgage-loan negotiations. TECHNIQUE AND PROCEDURE Although operated under different names and in spite of some variations in procedure, the two plans are substantially alike. The Benj. Franklin Federal Savings and Loan Association does not record its "Reserve Protection Clause" but handles it as an initialed agreement between the association and the borrower. The First Federal Savings and Loan Association of Toledo has its " Reserve Safety Clause" incorporated in the mortgage. Both clauses give the borrower the right to make extra payments at any time in addition to the contractual installments. These payments are credited to the borrower's account (principal) and the difference between the ledger balance and the contractual balance constitutes the reserve. The borrower is granted the privilege of suspending or reducing one or more contractual payments, with the exception of taxes and insurance, until the reserve is exhausted. While the reserve is not computed separately on the books, the amount in the reserve can rapidly be calculated at request, and one of the associations indicates once a year on the ledger card the amount of the contractual balance. The borrower's passbook lists each monthly payment, contractual and extra. The reserve does not earn dividends—it saves interest through the reduction of the outstanding balance of the loan upon which the monthly interest is calculated. If the borrower skips a regular installment while he has reserve protection, interest is charged to the loan principal and credited to earnings for the current month. In the following month, interest is charged on the higher balance. Since the reserve is designed to protect the borrower's ability to meet his contractual payments in adverse circumstances, it cannot be withdrawn in Federal Home Loan Bank Review cash. However, it may be used to finance repairs and then permits the borrower to obtain funds for this purpose at a rate identical with that of the original loan. In this case, the cost of repair is charged to the mortgage-loan balance provided it does not exceed the reserve. If it does, the excess is handled as an additional loan. Apart from the protection against emergencies and the application to repairs, one of the main advantages of the prepayment plan is, of course, the rapid reduction of the borrower's indebtedness if the plan is carried through successfully. As interest is charged only on the outstanding balance of the loan, this results in considerable interest savings to the borrower. As a practical matter, the amount of extra payment is handled somewhat differently by the two associations. In one case, the amount is based on an oral agreement between the lender and borrower and is more or less flexible. In the other institution, the contemplated amount is put down in the clause and has been 20 percent of the contractual installment in almost all cases although this is no absolute requirement. The association does not prohibit increase or decrease in the amount of extra payment, but finds from experience t h a t the great majority of borrowers continue according to the established program. The chart on this page, which illustrates the effects of prepayments under certain conditions, are based on an extra payment of 20 percent. E X P E R I E N C E TO D A T E Both associations report that in only a few cases has the reserve been used for the suspension of payments and this is but natural as the plan has been operating thus far on a rising market. More illuminating is the experience of the two institutions in regard to the acceptance of the plan by borrowers. In both cases the reserve clauses were introduced at a time when the general trend was toward reduction of monthly payments by lowering interest rates and extending amortization periods. Consequently, any institution adopting a plan involving extra payments had to "swim against the stream." Nevertheless, the two institutions have been growing at a good rate and report that practically all new loans made since the introduction of the prepayment system have been on the "Reserve Clause" basis. In the case of one association, about one-half of the mortgage loans on the books are paid ahead under the clause, with the highest reserve now amounting to one-tenth of the unpaid balance of the loan. December 1941 Both managements feel that the extra protection and the cost reduction afforded to the borrower by the plan carry a tremendous appeal which overcompensates the urge for low monthly payments. One of the associations reports that "there is no question but that the reserve clause produces an added incentive to free and clear home ownership." Of course there exists the possibility that borrowers will skip payments more freely if they feel that they are protected by a reserve. In actual practice this has not occurred so far on any measurable scale. Since the borrower's passbook shows clearly the loan balance, and since no borrower likes to see the balance increase, executives offering the plan are convinced that there is little incentive for suspension of payments except in the very emergency for which the reserve has been designed. APPROXIMATE PERIODS OF SUSPENSION OF PAYMENTS ALLOWED UNDER A RESERVE PROTECTION CLAUSE YEARS OF PERFECT PAYMENTS SUSPENSION RESUMPTION OF PERFECT PAYMENTS The above chart shows the number of monthly installments which can be suspended after a perfect payment record for the periods specified. Suspension does not apply to taxes and insurance premiums. The chart is based on a 5 percent loan with contractual maturity of 12 years. Extra payments are assumed to equal 20 percent of contractual payments. SOME BASIC CONSIDERATIONS One aspect of the prepayment plan is likely to be studied by association managers and directors with particular care: its effect on liquidity. As long as prepayments are being made in large volume, cash receipts will be correspondingly high. In a period of good investment opportunities, this will be desirable. When the demand for new mortgage loans is slackening, however, the earning capacity of the association may be reduced by high cash receipts which cannot be profitably invested. In a depression period, the suspension privilege accorded to the borrowers may result in a heavy 79 reduction of payments on loans, and this would occur at a time when new money, too, is likely to be thinning out. This consideration suggests that, from the institution's point of view, the existence of a credit reservoir such as that provided by the Federal Home Loan Bank System is important for the execution of any reserve clause plan for mortgage borrowers, and that associations using such a plan will be particularly careful to maintain in normal times an unused credit line with the Federal Home Loan Bank, on which they can draw when their mortgagors are forced to suspend or reduce payments on a larger scale. Moreover, it is obvious that the most propitious time for introducing a prepayment plan is in a period when employment and incomes are high and when collections are good. In such a period, borrowers' reserves can be built up to a point where they afford real protection when conditions change. Another important consideration before introduction of the plan is its legality. Both associations using the described clauses are operating under Federal charter, and their specific plans have been held unobjectionable from a legal point of view. In the case of State-chartered institutions, the adoption of a prepayment plan will depend on the statute in their particular States and on the features of the plan. In some States, a reserve protection clause may not be permissible under the existing law and legal advice should be sought before any such plan is put into operation. Survey of Home-Mortgage Finance (Continued from p. 73) and financing costs and loan terms were in many cases exorbitant and ill suited to the needs of borrowers. Many institutions overextended themselves or found themselves in an overextended position because of the lack of any reserve credit facilities. Many of these defects have largely been eliminated and progress is steadily being made toward further improvement in the debt structure. Appraisals are made on a more careful scientific basis and the importance of credit analysis is more generally recognized. Long-term amortized loans with low downpayments make expensive junior financing less necessary. Thrift and home-financing institutions are bulwarked by a reserve credit system on which they can rely to avoid the credit shortages which formerly threw operations completely out of gear. 80 The Report concludes that only time wTill tell whether the recovery so far made in the homemortgage lending field and the structural improvements brought about both by the industry and the Federal Government will prove adequate to meet the inevitable strain to which our economy will be subjected. Undoubtedly, however, there is a general awareness, which stems perhaps from recent experience, of the possible dangers ahead and the need for careful, farsighted planning. This attitude in itself is a healthy one and gives promise that a determined effort will be made to avoid the unsound type of lending which has always, in the past, caused ultimate trouble. Savings and Loan Assets Rise (Continued from p. 76) assets were equal to almost four-fifths (78 percent) of the assets of all operating associations, although the ratio of membership in terms of number of institutions had risen only to 53 percent. In half of the 12 Bank Districts, at least 80 percent of the assets of operating associations are accounted for by member associations; and in four of these, the ratio exceeds nine-tenths of the resources of all active institutions. T H E PROCESS OF CONSOLIDATION CONTINUES In the introduction to this article, reference was made to the fact that savings and loan associations in recent years have been undergoing an extensive process of consolidation and reorganization. The fact that more than 500 associations were dropped from the classification of operating institutions during 1940 is proof that this process of consolidation is still going on. Probably the majority of these associations were absorbed by other, more active institutions in an effort to establish larger and more effective operating units, either through merger, consolidation, or sale of assets. The remaining associations, it can be assumed, have entered a stage of liquidation. From the best available information included in State Supervisors' Reports and other sources, the Division of Research and Statistics has prepared estimates of the number and assets of all associations in liquidation during 1940. Table 3 indicates that the total resources of these institutions were slightly under a half-billion dollars, and that the number of liquidation cases was 200 larger at the end of 1940 than at the end of the previous year. Federal Home Loan Bank Review « « FROM THE MONTH'S NEWS WAR OF MACHINES: "In this war of machines, it takes 18 men in mines, farms, workshops, and transportation to supply one man at the front. In the last war the proportion was three to one." Labor's Monthly Survey, October 1941. DEBT BURDEN: "No nation can be bankrupt as long as it has all the manpower, all the productive facilities, and the raw materials that it had before. . . . The idea of thinking that we are leaving a great burden on our children and our children's children is wrong. The mortgage, which is the Government's bonds, we are bequeathing to posterity as well as the debt." Marriner S. Eceles, Chairman of the Board of Governors of the Federal Reserve System, October 15, 1941. OBSOLESCENCE: "During the decades when mass production, transportation, communication, education, public health, and a host of other activities made their greatest strides, the physical plant which housed all these complex mechanisms did not develop proportionately. In spite of corresponding progress in the design and construction of individual buildings, the general mass of structure has gradually become obsolescent." » » » Challenges of today "Undoubtedly, we are confronted with radical changes in the make-up and future character of our cities, where we have had our chief opportunity to make useful and productive mortgage investments. Decentralization, the re-location of industry, blight of old areas, reduced incomes, large-scale Government-subsidized housing for low income groups, exceptional housing for the middle class, provided by large institutional investors, all present challenging questions to us." Henry Bruere, Association News. Bulletin, October 20, 1941. Interdependence—one upon another "There is no better illustration of the interdependence of the people of this country one upon another than the story of what the savings and loan business has been doing. Consider the history of the last 20 years. In that period the savings and loan associations of the country have loaned over $24,000,000,000 for the purchase, construction and remodeling of homes . . . The savings and loan business has taught people the benefits of thrift and of home ownership, and has alone initiated a payment of between $8,100,000,000 and $10,012,000,000 to labor in this country in the past 20 years as it has urged people to build and as it has financed new homes.'' Savings and Loans, 1941. November •^•••^••^••^•••i Report of the Dean of the School of Architecture, Columbia University, 1941. OUTLOOK: "While demand and supply factors cannot be overlooked, the trend of interest rates in the immediate as well as in the distant future will be determined largely by the policy of the Government." Dr. Marcus 1 Nadler, Investment Dealers Digest, October 27, 1941. PRICE CONTROL: "Prices are not, like the tides of the ocean, controlled by some mysterious economic moon. They are controlled by men acting in their own interests and often acting without knowledge of the consequences of their price quotations. . . . Price control is not an additional or new element in our economy. It is a necessary substitute for the active competition that has been temporarily lost." | Miss Harriet Elliott, before the Pennsylvania State De- i fense Council, September 1941. December 1941 $05 tm m$ 9am*** 11m &*¥0km4 Trust Company During recent years many business men have feared that the long depression of the 1930's brought about a permanent halt in our economic expansion, or in the rising standard of living in this country. The chart reproduced above presents visual evidence of the fact that these fears need not be realized in the near future. As a matter of record, another new high in the standard of living is being made this year. It is interesting to note that although the output per factory worker decreased during the years 1917-1918, the opposite situation has prevailed during the past three years. The Cleveland Trust Company Business Bulletin, November 15, 1941. 81 PROPER FILING SYSTEMS CONTRIBUTE TO OPERATING EFFICIENCY Office efficiency depends to a large extent upon the form and convenience of association records. Attention of supervisory officials has recently been called to a unique filing system for mortgage-loan dockets used by a State-chartered association in the Midwest. • F R O M time to time, in their numerous contacts with member associations, supervisory authorities of the Bank System come across outstanding exhibits of practical office technique which, if passed along to other associations, can provide for a cooperative interchange of valuable operating information. An example of such material can be found in the model filing system for mortgage-loan dockets used by the Anchor Building Savings and Loan Association in Topeka, Kansas, which is illustrated on the opposite page and described below. T H E IMPORTANCE OF ORDERLY RECORDS Systematic presentation of records is a fundamental element in office efficiency and—in addition to saving time and increasing the effectiveness of the day-to-day operations of employees and executives— the neat, orderly, and compact accumulation of documents facilitates the work of examiners and auditors with resultant reductions in the cost of these services. A model mortgage-loan docket and filing system should permit easy and convenient handling of all documents pertaining to the transaction. I t should provide security for each of the various papers involved, and facilitate verifying that each has been completely executed. Finally, it should be readily adaptable to the needs of both large and small associations. DESCRIPTION OF THE ILLUSTRATED DOCKET The filing system of this association was designed so that all the papers connected writh each mortgage loan could be kept in a permanent, regular order. To secure permanence, the documents are fastened at one end with a locking metal clip. A definite, fixed order for the papers results from the fact that each form is numbered and identified by boldface type on the lower edge of the page. To make this number and name stand out, each succeeding page 82 is one-eighth of an inch longer than the one which precedes it. Employees can not place papers in this file out of order without the error making itself immediately evident. As the managing officer of this institution stated, "Anyone who can count from one to eleven can keep these files in order." The following brief explanation of the principal features of each of the 11 forms included in the mortgage-loan file illustrates t h e ' practicability of the system: 1. The loan files check sheet. This form serves a double purpose. First, it is kept in the book for Loans in Process until each of the 28 items listed has been checked out. Then this sheet and all other papers are filed as a unit in a folder which has a reinforced edge and tip. 2. Insurance. This sheet merely indicates where the insurance policy is to be filed. The insurance policy is fastened into the folder and then folded back so that it does not protrude belowr the bottom of the Loan Files Check Sheet. 3. Note. 4. Mortgage. Both the note and mortgage forms have been printed especially for use in this file and have been approved by the State supervisory authorities. 0. Attorney's opinion. Again, for the purpose of keeping all the forms to a prescribed size, blank stationery is furnished for the use of the attorney. 6. Certificate oj membership. This association pursues a policy that a certificate of membership must be issued to everyone doing business with it. Therefore, evidence of that membership is considered an essential part of the mortgage-loan papers. 7. Application and appraisal. These forms provide all information about the potential borrower and the security offered for his (Continued on p. 100) Federal Home Loan Bank Review W MODEL MORTGAGE LOAN FILE 7 D December 794/ 83 RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS 1935-1939= BY YEARS INDEX 280 100 BY MONTHS 1 i i • | | | 280 T ADJUSTED FOR SEASONAL VARIATION 260 I 1 1 1 1 1 RESIDENTIAL CONSTRUCTION^ 240 220 200 180 RESIDENTIAL 160 \ w CONSTRUCTION^ (U. S. DEPT. OF LAB OR RECORDS) / 140 r—V grvg, « y a LOAN LENDING | V . HOMF 1 ftAN BAWK BOABrrt (FFOFRAl > f\^SVGS. I V ki/Airv A* .ENC\lki/2 7/VO - f\ •X^ 120 100 ,-..J../ /uS ^ 1 80 60 ***•. ....•••**' NON FARM \ FORECLOSURES-^ •*'* / / I NONrMtxM rurxLULUduntLS ^(FEDERAL HOME LOAN BANK BOARD) 40 20 0 140 I _ 120 1 i i i 1i i 1 1 ; 1 1 1 1 1 1 1 BUILDING MATERIAL PRICES*- 1 _J J l>— BUILDING MATERIAL PRICES^ |(U. S. DEPARTMENT OF LABOR) 100 80 ft -RENTS J (NATIONAL INDUSTRIAL CONFERENCE BOARD) I 60 L V 200 i I I I ^j_i_ -v-1 L^v L , i 11 -l _j 1 — ,, |_ 1 i 1 | _L_L_ _L_L_ 1 1 1 1 1 1 -^1/ r~ ADJUSTED FOR SEASONAL VARIATION 180 -INDUSTRIAL PRODUCTION^ 160 140 INDUSTRIAL PRODUCTION 120 ^INCOME PAYMENTS' 100 80 60 L v 1930 Jx..^ '32 '33 '31 '34 '35 '36 INDEX COST OF STANDARD SIX-ROOM HOUSE 135 1935-1939 = 100 '37 '38 '39 '40 u-V 41 i i 1 i i 1 i i I i i I i i I i i I i i 1940 WHOLESALE COMMODITY PRICES 1935-1939=100 I94£ 1941 MANUFACTURING PAYROLLS 1935-1939 = 100 >>ALL INDUSTRIAL t^ 84 J^J ^v Federal Home Loan Bank Review if if Cf ONTHLY S U R V E Y » >> » Highlights /. The effect of recent Governmental restrictions on building activity is now being reflected in current construction statistics. A. Building permits issued for new family-dwelling units during October were 14 percent lower than in September and 21 percent below the volume in October 1940. B. The seasonally adjusted index of new construction in all urban areas has now declined for 4 consecutive months and the index for October is the lowest for the past 16 months. II. Increases in building costs are now more pronounced in the retail market. A. The combined index of material and labor costs involved in the construction of the standard house rose 2 percent in October and now stands nearly 19 percent above the average month of 1935-1939. B. Of the 24 cities reporting for the period from August to November, seven showed cost increases of at least $500 and all except four experienced gains of more than $100. III. Mortgage-financing activity continued at a high level, however, with a shift in emphasis from new construction to existing dwellings. A. The volume of nonfarm mortgages of $20,000 and under recorded in October established a new monthly high of almost $450,000,000. B. In contrast to a declining volume of loans for new construction, home-purchase loans of savings and loan associations have shown a substantial increase as borrowers turn to existing dwellings for housing accommodations. I V. In contrast to the prevailing downward trend of foreclosures noted during preceding months, the seasonally adjusted index showed a slight increase in October primarily as a result of accelerated foreclosure actions in nondefense areas and smaller communities. Summary • C U R T A I L M E N T S in building activity, which are now more evident, present managers of home-financing institutions with the necessity of moulding their investment policies to meet this situation. In previous periods of good employment and industrial prosperity the demand for new homes usually could be met without difficulty. Now, during what is perhaps the greatest period of industrial expansion that this country has ever experienced, we are faced with the necessity of diverting many essential materials to defense purposes. Although housing of defense workers is being assisted by priority allocations, even this sector of the construction field may find difficulty in obtaining sufficient quantities of scarce materials to operate on a really adequate scale during the coming months. The fact that mortgage-financing activity for the country as a whole rose 5 percent during the month of October, in the face of a drop in privately financed home construction, is evidence that lenders are utilizing the opportunities offered in other types of loan business. Greater emphasis is being placed on financing the purchase of existing homes, at least in the savings and loan industry. So far in 1941 these institutions loaned approximately 41 percent of their December 1941 total new mortgages to borrowers acquiring title to existing dwellings, while last year only 35 percent was advanced for this purpose. Construction loans continued to account for about 32 percent of the total new loans of savings and loan associations, while all other loan-types declined in relative importance. Building costs, meanwhile, are rising to everhigher levels. In October the total expenditure necessary for constructing a standard six-room frame house stood 13 percent above the same month of 1940. Labor rates have increased somewhat more than material prices during this 12-month interval. Compared with earlier periods, cost increases are 1935--1939=10 0) T y p e of index Oct. 1941 Sept. 1941 Percent change Oct. 1940 R e s i d e n t i a l construction 1. Foreclosures (nonfarm) i„_ ___ _ R e n t a l index ( N I C B ) B u i l d i n g m a t e r i a l prices l Savings a n d loan l e n d i n g Industrial production l . Manufacturing employment * M anufacturing p a y rolls 1 I n c o m e p a y m e n t s 1 _. __ . . __ 180.0 34.2 109.3 119.8 P 177.9 P 164.0 P 133.3 P 182.3 P141.1 r 207.5 r 32.9 109.0 118.8 r 182. 8 161.0 ' 133.9 '181.7 ' 139.1 -13.3 +4.0 +0.3 +0.8 -2.7 +1.9 -0.4 +0.3 +1.4 228.1 48.8 107.1 109.2 157.9 130.0 112.3 127.1 115.8 Percent change -21.1 —29.9 +2.1 +9.7 +12.7 +26 2 +18.7 +43.4 +21.8 p preliminary r revised. i Adjusted for normal seasonal variation. 85 even more marked. If it took $5,000 to build the standard house over the average of the 5 years preceding the War, the outlay at present would be nearly $6,000. For the last quarter alone, seven of the 24 cities reporting for that period indicated cost rises of $500 or more. General Business Conditions • BUSINESS activity and industrial production continued to move sidewise on their high plateau of operations during October and early November. A rise in the index of industrial production from 161 to 164 percent of the 1935-1939 average was chiefly accounted for by sustained activity in industries producing vital defense commodities in the face of the declines usually experienced in this season. Plants turning out goods for civilian consumption were subjected to further curtailment by Governmental restrictions on nondefense activity during the month. Automobile production in October was about one-fourth smaller than in October last year and further restrictions provide for a cut in output for February to no more than 43.9 percent of that in February 1941. Ketail sales in October dropped only slightly below the peak of the previous month notwithstanding the fact that a substantial slump had been anticipated. The volume of trade was supported during the month particularly in sales influenced by farm income. Sales of general merchandise in small towns and rural areas were larger in October than in any month on record except December 1940. Despite repeated references to the rising prices of specific commodities, the all-commodity index of wholesale prices varied between 113.2 and 113.8 percent of the 1935-1939 average from the middle of September to the middle of November, indicating a relative stability in the general price level over the period. The combined index of the cost of living in the meantime has risen 1.4 percent to 109.4 percent of the 1935-1939 average and now stands 11 percent above the level at the beginning of the War. Freight loadings in the middle of November were only 4 percent below the October peak, reflecting the maintenance of industrial production against the usual seasonal decline. The rail movement of freight in 1941 has been greater than ever before. Although the railroads have 20 percent fewer freight cars and 40 percent fewer locomotives now than they had 25 years ago, they are hauling one-third more ton-miles of freight this year than they did in 1916. 86 The increase in ton-miles of freight since the start of the present war has been 70 percent greater than it was in the comparable period of the World War. The high reserve requirements which went into effect for Federal Reserve member banks on November 1 reduced their excess reserves to $3,540,000,000 on November 12. This is a decline of $1,690,000,000 since the middle of October and of $3,400,000,000, or nearly 50 percent, from the peak of October 1940. At the same time, there was an actual decline in total reserves of $614,000,000 during the past four weeks. This drop resulted principally from large flotations of Government bond issues and a further increase in the amount of money in circulation which has risen nearly $200,000,000 in the past four weeks and over $2,000,000,000 since October of last year. Residential Construction [Tables 1 and 2} • T H E volume of residential construction in all urban areas of the United States declinedfor the fourth consecutive month, bringing the seasonally adjusted index for October to 180 percent of the average month of 1935-1939. This is the lowest point reached in the last 16 months and reflects the restrictions being placed on private construction with the Government issuing priorities on all building material necessary for defense purposes. Despite the decline in residential construction for the past few months, 387,000 dwelling units were put under construction during the January-October period, which is a 15-percent gain over the same period in 1940. Of this total more than two-thirds of the dwellings were of the 1-family type and were privately constructed. During this 10-month period NEW RESIDENTIAL CONSTRUCTION IN ALL URBAN AREAP PERMITS ISSUED FOR PUBLICLY AND PRIVATELY FINANCED DWELLING UNITS THOUSANDS OF OWE LLING UNITS 35 / andPRIVt2 F 30 25 20 15 i / 10 A /\JW-. ALL PUBLIC ~> . 5 , °C EC \ • , 1 , , | , , 1 , PRIVATE MULTI-FAMILY MAR. JUN. 1940 SEP DEC MAR. JUN. 1941 SEP DEC MAR JUN. SEP D :c 1942 Federal Home Loan Bank Review nearly 63,000 dwelling units were financed by the Government housing agencies, with the greater part of them being designated for occupancy by families of defense workers and civilian and military personnel of the Army and Navy. Geographically only 17 States show an increased volume of building activity in comparison with October of last year. For the country as a whole October construction was 21 percent below October 1940. TOTAL LOANS MADE BY ALL SAVINGS AND LOAN ASSOCIATIONS UNITED S T A T E S - B Y BY TYPE OF ASSOCIATION MONTHS Building Costs [Tables 3, 4, and 5] • FOR 15 consecutive months increases have been shown in both material and labor costs involved in the cost of the standard six-room house, and the combined index now stands nearly 19 percent above the average month of 1935-1939. T h e cost of material used in this dwelling, while rising over 1 percent in October, is now 16 percent above the base period and more than 12 percent higher than in the same month of last year. Labor costs in connection with building the standard house rose 2 percent in October, which places the labor cost index 23 percent above the level of the base period, 1935-1939. Construction costs for the standard house [Average month of 1935-1939=100] Element of Cost Material Labor _ Total October 1941 SepPertember cent 1941 change October 1940 Percent change 116. 0 123. 3 114. 4 120. 7 + 1.4 + 2. 2 103. 4 106. 9 + 12. 2 + 15. 3 118. 5 116. 5 + 1.7 104. 6 + 13. 3 Of the 24 cities currently reporting, all except four show increases of more than $100, and seven register advances of a t least $500, from August to November. The largest rises were reported in San Antonio ($923), Dallas ($709), Houston ($694), Albuquerque ($668), Philadelphia ($589), Harrisburg ($578), and San Diego ($570). Wholesale building material prices continued to increase during October, though a t a slower pace, with paint and paint materials showing the largest rises. T h e Labor Department's composite index advanced 1 percent, and a slight decline was registered early in November. December 1941 CUMULATIVE - AS OF SEPTEMBER 3 0 EACH YEAR III III JU 1939 1940 1941 FEDERALS 1939 1940 1941 STATE-CHARTERED MEMBERS 1939 1940 1941 NONMEMBERS New Mortgage-Lending Activity of Savings and Loan Associations [Tables 6 and 7] M T H E restrictions imposed upon the construction of homes by current shortages of a number of building material items have been reflected to an ever-increasing extent in lending operations of savings and loan associations. During the month of September, a drop of 5 percent was noted in construction loans made by these institutions, while a 4-percent reduction occurred in this classification during the previous month. Even after allowance has been made for usual seasonal declines during these months, it is apparent that growth in the financing of new home building is being effectively blocked during this stage of the emergency. Increased emphasis is meanwhile being placed on more concentrated use of existing dwellings in the face of local housing shortages. That many savings and loan association managers are aware of the possibilities and are sharing in the financing of this type of business, is evidenced by the record of 87 their loans for the purchase of homes during current periods. In contrast to the lower volumes shown in the construction-lending category during the past two months, the home-purchase group evidenced successive rises to a new post-depression high in September. The $58,000,000 loaned for the acquisition of existing houses was 42 percent higher than in September 1940, while in this same comparison new construction loans increased less than 4 percent. According to preliminary estimates presented in Table 6, page 94, total loans of savings and loan associations during the month of October declined somewhat from the September figure. Aggregate loans for the first 10 months of the year totaled approximately $1,175,000,000 or 16 percent more than in the same period of last year. Mortgage recordings by type of mortgagee [Amounts are shown in thousands of dollars] Percent Percent Cumulative Perchange of Oct. recordings cent of total from (10 1941 recordSept. amount months) ings 1941 Type of lender Savings and loan associations Insurance companies Banks, trust companies Mutual savings banks. _ Individuals_ __ Others __ Total + 2. 1 + 10. 1 + + + + 5.4 9. 5 6.4 7.5 + 5. 4 31. 0 $1, 263, 792 333, 972 8.9 31.9 8.4 264 588 629 677 24. 6 4.5 16. 5 14. 1 100. 0 $3, 961, 922 100. 0 23.7 5. 1 16. 7 14. 6 973, 179, 654, 556, Foreclosures Mortgage Recordings [Tables 8 and 9] • E E F L E C T I N G the extremely active realestate market which has resulted from the defense program, the volume of mortgage financing during October continued the upward trend that has been evident since the beginning of the mortgagerecording series 3 years ago. A new high of nearly $450,000,000 was recorded in home mortgages of $20,000 or less during October, with all types of lenders participating in the 5-percent gain over the preceding month. Total mortgage-lending activity during the first 10 months of this year closely approximates the aggregate recordings of $4,030,000,000 for the year 1940. Analyzed by mortgagee classes, recordings in the name of mutual savings banks during the January-October period were 6 percent in excess of those for the entire year 1940, while individuals recorded an excess of 2 percent. Insurance companies held a parity between the year-to-date figures for 1941 and the 1940 total. The other classes of mortgages have not as yet reached their respective 1940 volumes. Comparing like periods, the January-October totals for the current year are 17 percent above those for 1940 and 37 percent above instruments recorded in the corresponding period in 1939. NOTE.—Headings on the mortgage-recording tables presented in November were transposed. Readers who tabulate this information for their own State or Bank District should note that data on p. 63 are for August 1941 and those on p. 64 are for September 1941. 88 [Table 10] • A 4-percent rise in the seasonally adjusted index of nonfarm foreclosure activity was noted during the month of October. This increase from September was caused almost entirely by accelerated foreclosure actions in nondefense areas which reported an advance of 7 percent while there was a decline of 2 percent in defense areas. Also, foreclosure proceedings in the smaller communities showed a sizeable expansion in contrast to the largest metropolitan cities which continued to report a favorable downward movement during the September-October period. In terms of actual cases, nonfarm real-estate foreclosures in the United States increased from 4,374 in September to 4,408 in October. Although this increase is slight, it is none the less unfavorable in view of the customary 3-percent decline expected at this time of year. Foreclosures during the January-October period of this year totaled 49,840, or 22 percent less than in the same period of 1940. Communities in each of the four size-groups contributed to this decrease with the percentage decline being greater than the national average for the largest communities and somewhat less for all other groups. Geographically, all of the Federal Home Loan Bank Districts showed declines in this January-October comparison ranging from 35 percent for the Indianapolis District to 11 percent for the Topeka District. Only five scattered States registered increases for this period—namely, Vermont, Delaware, Florida, Mississippi, and Arizona. Federal Home Loan Bank Review Federal Savings and Loan Associations [Table 12} • ASSETS of all Federal savings and loan associations have expanded at an average rate of almost $23,000,000 per month during the first three quarters of 1941. Since the close of 1940, the aggregate assets of Federal associations have risen more than $200,000,000 and by the end of September stood at $2,075,000,000. This increase was slightly above the gain registered during the same period of last year. The experience of Federal associations with regard to increasing balances in mortgage-loan and privateshare-capital accounts has been similar to that for all insured savings and loan associations—that is, the gain in mortgage holdings has been considerably greater than the net gains in private repurchasable capital. During the first 9 months of this year, the mortgage-loan accounts of Federal associations increased almost $230,000,000 whereas the increase in private invested capital amounted to slightly more than $207,000,000. Progress in number and assets of Federals [Amounts are shown in thousands of dollars] Number Class of association Approximate assets Oct. 30, 1941 Sept. 30, 1941 New Converted. _ 640 823 640 819 $655, 847 1, 449, 697 $645, 884 1, 430, 840 Total 1, 463 1,459 2, 105, 544 2, 076, 724 Oct. 30, 1941 P Sept. 30, 1941 p Preliminary. Federal Savings and Loan Insurance Corporation [Table 12} • AT the end of September aggregate assets of all insured savings and loan associations amounted to almost three and one-quarter billion dollars. The increase during the first 9 months of 1941 of more than $290,000,000 represents a 10-percent gain December 1941 over the total resources of these institutions at the close of 1940, and exceeded the gain shown in the same period of last year by approximately $8,000,000. There was a net increase of 50 insured institutions during the 9-month period, and at the end of September 2,326 associations were providing share-account insurance for more than 3,000,000 investors. Private repurchasable capital invested in insured savings and loan associations rose 13 percent or $285,000,000 from January 1 through September 30, but the growth in first mortgage loans held by these institutions has been at an even more rapid rate. The mortgage portfolios of insured associations gained $330,181,000, or 14 percent, during the same period reaching a total of $2,673,000,000 at the end of September. Federal Home Loan Bank System [Table 13} • SO far in 1941 Federal Home Loan Bank advances have been consistently above 1940 levels. The advances outstanding at the end of October—$184,311,000—were 3 percent in excess of last month's figure and 2 percent above October 1940. This established a new peak for the current year. Only in 1938 was a larger volume of advances registered for this time of year. The increase in advances outstanding was reflected by all the Banks except Cincinnati, Topeka, and Portland, which showed relatively small decreases. The Boston Bank reported the largest monetary and percentage increase—$2,600,000 or 26 percent. Increases in other Bank Districts ranged from 1 to 5 percent. The advances outstanding in the Boston District were at an all-time high at the end of October, and new advances made during the month exceeded the total advances made in several previous calendar years. Figures for October showed a net excess of $6,120,000 of current advances over repayments. October repayments were 4 percent below the previous month. The increases in current advances made during October were confined to the Banks in Boston, Pittsburgh, Winston-Salem, and Chicago, although the monthly total exceeded the September current advances by $289,000, or approximately 3 percent. The Bank System now has a membership of 3,827 with total estimated assets of $5,372,000,000 on October 31. 89 Table 7.—Estimated number and valuation of new family dwelling units provided in all urban areas of the United States, October 1941 [Source: U. S. Department of Labor] [Amounts are shown in thousands of dollars] N u m b e r of family dwelling units M o n t h l y totals T y p e of construction Oct. 1941 Private construction. 29, 871 1 r 30,334 33, 155 324, 449 288, 044 $113,212 r 9, 942 62, 787 49, 096 14, 365 34, 019 * 39,571 43, 097 387, 236 337, 140 127, 577 4, 148 ' 9, 237 4,765 r 99, 650 5,486 8,076 2, 520 Sept. 1941 Oct. 1941 1940 44, 801 43, 006 2,930 Public construction Total urban struction. 1941 M o n t h l y totals 24, 931 * 25,547 26, 171 259, 513 227, 740 2,010 ' 2, 267 2,219 20, 135 17, 298 1-family dwellings 2-family dwellings * 3-and more-family dwellings 2 . 2 r J a n . - O c t . totals Oct. 1940 Sept. 1941 P e r m i t valuation J a n . - O c t . totals Oct. 1940 1941 1940 $115,469 $122, 104 $1, 214, 709 $1, 040, 108 r con- 102, 616 ' 6, 262 r r r 102, 027 1, 035, 735 5,677 52, 444 872, 168 43, 427 6, 591 14, 400 126, 530 124, 513 32, 181 32, 026 209, 219 150, 820 147, 650 154, 130 1, 423, 928 1, 190, 928 Includes 1- and 2-family dwellings combined with stores. Includes multi-family dwellings combined with stores. revised. Table 2.—Estimated number and valuation of new family dwelling units provided in all urban areas, in October 1 9 4 1 , by Federal Home Loan Bank District and by State [Source: U. S. Department of Labor] [Amounts are shown in thousands of dollars] All residential dwellin gs Federal H o m e Loan B a n k District and State U N I T E D STATES N o . 1—Boston _ .. _ _ Connecticut _ Maine Massachusetts. New H a m p s h i r e R h o d e Island Vermont _ N o . 2—New York New Jersey N e w York N o . 3—Pittsburgh _ _ _ Delaware _ Pennsylvania _ West Virginia _ 90 _. _ _ N u m b e r of family dwelling units All private 1- a n d 2-family dwellings Permit v aluation N u m b e r of family dwelling units P e r m i t valuation October 1941 October 1940 October 1941 October 1940 October 1941 October 1940 October 1941 October 1940 34, 019 43, 097 $127, 577 $154, 130 26, 941 28, 390 $105, 136 $107, 704 1,735 2,736 7,954 11,001 1,675 1,621 7,807 7,158 551 69 843 60 196 16 747 78 1,346 60 484 21 2,894 213 3,650 247 877 73 3, 393 285 5, 210 207 1, 801 105 551 65 787 60 196 16 488 74 808 60 170 21 2,894 201 3,515 247 877 73 2,446 275 3, 439 207 686 105 3,612 6, 122 15, 868 23, 532 2,494 2,562 11, 626 11,437 1, 276 2, 336 1,293 4,829 5,773 10, 095 5, 612 17, 920 1,006 1,488 888 1,674 4,725 6,901 4,009 7,428 1,316 1,869 5,834 8,058 1,303 1,793 5,796 7,829 20 1, 093 203 22 1,596 251 109 5,028 697 86 6,917 1,055 20 1,080 203 19 1,546 228 108 4,991 697 80 6,796 953 Federal Home Loan Bank Review Table 2.—Estimated number and valuation of new family dwelling units provided in all urban areas, in October 1 9 4 1 , by Federal Home Loan Bank District and by State—Continued [Amounts are shown in thousands of dollars] All private 1- ai id 2-family dwellings All residential dwellin gs N u m b e r of family dwelling units Federal Home Loan Bank District and State Permit valuation N u m b e r of f amil}T dwelling units Permit valuation October 1941 October 1940 $22, 612 4, 171 3, 924 $13, 686 $12, 924 806 1,767 4,366 911 6,173 2,248 667 2, 359 772 4,240 5, 179 1,711 1,078 1,538 713 7,381 402 160 1,045 420 773 668 228 475 420 232 1, 123 490 317 503 282 557 794 974 3,985 897 2,474 1,893 623 2,046 739 1,461 4, 106 1,167 1,078 1,490 703 2, 180 4,610 10, 569 18, 197 2,287 2,078 10, 006 8,912 263 1,772 456 217 3,816 577 681 8, 743 1, 145 542 16, 184 1,471 251 1,612 424 213 1,484 381 657 8,220 1, 129 535 7,432 945 2,273 2,793 9, 756 11,745 2,259 2,635 9,717 11,188 ._ 776 1,497 933 1,860 2,891 6, 865 3,338 8,407 776 1,483 790 1,845 2,891 6,826 2,831 8,357 No. 7 — C h i c a g o . . 1,911 2,398 9,724 10, 912 1,806 1,916 9,447 9,202 Illinois Wisconsin 1,339 572 1,775 623 7,263 2,461 8,428 2,484 1,266 540 1,319 597 7,063 2,384 6,778 2,424 1,610 1,728 6,359 6,380 1,379 1,685 5,529 6,275 __ _ 535 517 413 77 68 451 665 492 43 77 2, 026 2,296 1, 554 270 213 1,659 2,678 1,676 148 219 326 517 391 77 68 447 665 461 39 73 1,269 2,296 1,482 270 212 1,648 2,678 1,600 139 210 ___ 3,563 2,734 9, 719 7,368 3,011 2,672 7,969 7,235 291 413 309 101 2,449 186 348 258 107 1,835 660 1,230 441 240 7, 148 493 938 403 282 5,252 284 405 306 92 1,924 178 348 246 107 1,793 653 1,215 436 225 5,440 443 938 383 282 5, 189 1,426 No. 4—Winston-Salem Alabama __ District of Columbia __.. Florida Georgia Maryland. N o r t h Carolina _ _ South Carolina Virginia __ No. 5—Cincinnati.. Kentucky. Ohio Tennessee _ _ N o . 6—Indianapolis . Indiana Michigan No. 8—Des Moines _ _ _ Iowa__ Minnesota Missouri _ North Dakota _ South D a k o t a _ No. 9—Little Rock Arkansas. Louisiana _ _ Mississippi _ New Mexico Texas _ No. 1 0 — T o p e k a . _ . ._ _ Colorado Kansas Nebraska.. Oklahoma. No. 11—Portland _ _ __ _ Idaho Montana Oregon _ Utah Washington Wyoming _ _ _ _ No. 12—Los Angeles Arizona California. Nevada. December 1941 _ _ ._ October 1941 October 1940 7,674 $19, 297 412 518 1, 220 437 1,681 804 272 608 440 1,289 1, 562 705 317 532 289 2,540 2,491 October 1941 October 1940 5,952 October 1941 October 1940 1, 187 4,582 3,551 1,039 1, 158 3, 174 3, 496 322 579 212 313 281 304 173 429 975 1,934 762 911 797 794 608 1,352 318 196 212 313 273 287 169 429 964 537 762 911 781 765 598 1,352 1,451 1, 263 5,006 4,036 1,226 1,222 4,329 3, 949 134 85 358 195 607 72 143 114 277 236 442 51 405 299 1,233 658 2, 128 283 401 279 815 810 1, 523 208 63 80 273 191 553 66 143 114 247 228 439 51 198 292 906 648 2,016 269 401 279 746 795 1, 520 208 6,679 7, 983 22, 909 26, 738 4, 291 5, 124 16, 050 18, 099 88 6,530 61 85 7,855 43 270 22, 439 200 253 26, 307 178 68 4, 162 61 75 5,011 38 240 15, 610 200 236 17, 690 173 91 NEW RESIDENTIAL CONSTRUCTION IN ALL URBAN AREAS ALL PRIVATELY FINANCED I AND 2 FAMILY DWELLINGS Source: Federal Home Loan Bank Board. Compiled from Building FEDERAL I - BC1STON HOME LOAN Permits reported to U S - Department of BANK 4 -WINSTON SALEM 3 -PITTSBURGH 2 - NEW YORK Labor DISTRICTS s / n ^ 1941^ y l94 !\ ST s^r _Q 1940 I94lf\ ^-1940 194 JAN ^ y^ '\ ^94 0 ^\ FEB MAR APR MAY 5 - C INC)IN W V n4( > ^ JUN JUL- AUG- SEP OCT NOV OEC •| -j L. AUG- SEP. OCT. NOV DEC i « MAY JUN. JUL AUG SEP OCT K 1 1 7 -CHICAGO 6 -INDIANAPOLIS 1 JUL AUG SEP OCT NOV DEC V 1 8 -DES MOINES 1941^ \9A / f~T* ^ / — '} \V 940^ J j i *>._ i SEP OCT NOV DEC i /94/o- FEB MAR APR MAY ' JUN. JUL AUG. SEP OCT NOV DEC 1 9 - L i n •LE ROCK IC - • 1940 wS 1941•) &* ^ JAN % , N>- 1940^ FEB. MAR. APR. MAY JUN. JUL AUG SEP. OCT NOV DEC ^ 1 II- p ORTLm ) Of >EKA > 194l> . 1 AUG SEP OCT NOV OEC "I 12-LOS A NGEL ES 1 1 rr— ,94,^ \^ ^ JM /> •I9< -<? Z-^ - o * I9< 1^ I FEB MAR APR MAY 194 0 Y Y <1 JUN. JUL. AUG. SEP C 194 I940 /94/-> JAN. FEB MAR A /940H >#?• ^ EIGHT STATES WITH GREATEST VOLUME DURING OCTOBER N EW JE:RS>EY P :N ^JS 'AN IA 0 HIC) m r" • NEW YORI c THOUSANDS 6 1 4 3 f9 -/ 4 '-* yi940 oJT 1= JAN FEB MAR APR. I r • ' > ^ =2==*s /94/f\« V ^C -^ <->^ I JUL AUG. SEP ^1940 OCT. NOV OEC 6 /£ 41- Y IL LI JO s MICHIGAN ^1 v -. <?4c n 41- S "ttrTIT l FEB MAR APR. MAY , T EX *S ^ y \J/^-1940 "* 1 1 . AUG SEP OCT. NOV DEC CALIFORNIA 1 \r~' ' - ifttir. 2y 5 4 /9 4 0 19 41— 3 2 1 0 - J J FEB V 19 Sj f~ /< 4/- -194 0 "MAR Lmt 92 MAY "jUN JUL "AUG SEP ocT"NOV DEC n °^" x. ^ /940^ 5» T I JUL AUG SEP OCT NOV OEC «/ 'N 940-* ^ I JUL AUG SEP OCT f I FEB MAR. APR. MAY JUN JUL AUG SEP OCT. NOV DEC Federal Home Loan Bank Review Table 3.—Cost of building the same standard house in representative cities in specific months N O T E . — T h e s e figures are subject to correction [Source: Federal H o m e Loan B a n k Board] T o t a l cost Cubic-foot cost Federal H o m e Loan B a n k District a n d city 1941 1941 1940 Nov. Nov. Nov. Aug. May $0. 293 . 318 .299 .304 . 272 . 289 $0. 249 .273 .263 .268 . 248 . 272 $7, 030 7,628 7, 187 7,295 6,525 6, 932 $6, 636 7,050 6,598 7,301 2 6, 240 2 6, 655 No. 5—Cincinnati: Lexington, K y Louisville, Ky Cincinnati, O h i o . Cleveland, Ohio Columbus, Ohio Memphis, T e n n Nashville, T e n n .254 .294 . 264 . 309 .275 .263 .253 . 228 .227 . 239 .290 .246 .230 .221 6,085 7,057 6,341 7, 428 6, 606 6, 301 6,073 5, 931 6,704 5, 906 7,249 6, 370 6, 177 5, 852 No. 9—Little Rock: Little Rock, Ark New Orleans, La Jackson, Miss Albuquerque, N. M Dallas, Tex _ Houston, Tex San Antonio, Tex . 221 . 265 . 264 . 325 . 314 . 313 .317 . . . . . . . 217 251 247 282 251 271 243 5,305 6, 362 6,325 7,791 7, 530 7,503 7,615 No. 12—Los Angeles: Phoenix, Ariz Los Angeles, Calif San Diego, Calif San Francisco, Cal .308 .251 .290 .293 .276 . 229 . 254 .265 7,384 6,013 6,953 7,041 No. 3—Pittsburgh: Wilmington, Del Harrisburg, P a Philadelphia, P a Pittsburgh, Pa Charleston, W. Va Wheeling, W. Va 2 2 2 2 5,305 6, 359 6, 333 7, 123 6,821 6, 809 6,692 7, 106 5, 812 6,383 6, 916 1940 1939 1938 1937 Feb. Nov. Nov. Nov. Nov. $6, 189 6,737 6, 304 6,870 6,296 6, 612 $6, 033 6,737 6,304 6,775 6, 133 6, 428 $5, 986 6, 554 6, 309 6,434 5,963 6,525 $5, 389 6, 105 5,583 6,398 5,843 6,346 $5, 898 5,681 5,379 6, 409 5,886 6,005 $5,811 5, 823 5, 755 6, 719 6,240 6,636 5,673 6,616 5,680 7, 170 6, 147 6,008 5,706 5,555 6,285 5,732 6,877 5,965 6,064 5,537 5,483 5,444 5,743 6,949 5,912 5, 528 5,298 5,912 5, 402 5,564 6,836 5,774 5,415 5, 022 5,474 5,239 5,595 6, 416 5,726 5,367 5, 116 5, 604 5, 384 6,022 6, 863 6, 097 5, 463 5, 476 5, 194 6,207 6, 192 7,015 6, 713 6,687 6,583 5, 193 6,081 6,065 6,977 6,622 6,621 6,573 5,215 6,021 5, 925 6, 762 6,022 6,501 5, 835 5, 183 5,860 6,015 6,316 5,335 5,866 5,688 5, 199 5,802 6,064 6, 539 5,748 5,915 5,929 5, 186 5,959 5, 968 6,646 6,068 6, 143 6,228 6, 635 5,504 6, 103 6,352 6,223 5,303 5,471 6,301 6,468 5,469 5,822 6,369 6,741 5, 926 6, 184 6, 375 2 2 2 6, 793 5, 559 6,088 6, 494 2 6, 754 5, 514 6,071 6, 363 2 i The house on which costs are reported is a detached 6-room home of 24,000 cubic feet volume. Living room, dining room, kitchen, and lavatory on first floor; three bedrooms and bath on second floor. Exterior is wide-board siding with brick and stucco as features of design. Best quality materials and workmanship are used throughout. The house is not completed ready for occupancy. It includes all fundamental structural elements, an attached 1-car garage, an unfinished cellar, an unfinished attic, a fireplace, essential heating, plumbing, and electric wiring equipment, and complete insulation. It does not include wall-paper nor other wall nor ceiling finish on interior plastered surface, lighting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades. Reported costs include, in addition to material and labor costs, compensation insurance, and allowance for contractor's overhead and transportation of materials plus 10 percent for builder's profit. Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks and driveways; they do not include architect's fee, cost of building permit, financing charges, nor sales costs. In figuring costs, current prices on the same building materials list are obtained every three months from the same dealers, and current wage rates are obtained from the same reputable contractors and operative builders. » Revised. Table 4.—Index of building costs for the standard house [Average month of 1935-1939 = 100] Element of cost Material Labor Total cost- December 1941 Oct. 1941 Sept. 1941 Aug. 1941 July 1941 June 1941 May 1941 Apr. 1941 Mar. 1941 Feb. 1941 Jan. 1941 Dec. 1940 Nov. 1940 Oct. 1940 116.0 123.3 114.4 120.7 112.6 120.0 110.7 119.3 109.2 118.6 108.8 117.0 108.7 116. 1 108.0 115.3 107.8 115. 1 106.6 114.5 105.9 112.5 104.6 109. 8 103.4 106. 9 118.5 116.5 115. 1 113.6 112.4 111.6 111.2 110.4 110.2 109.3 108. 1 106.4 104.6 Table 5.—Index of wholesale price of building materials in the United States [1935-1939=100; converted from 1926 base] [Source: U. S. Department of Labor] All building materials Brick and tile 1939: October 103.6 100.7 100.2 1940: October November December 109.2 110.4 110.9 99.3 99.3 100.3 1941: January February March April May June July August September October 111.2 110.9 111. 1 111.8 112. 1 112.8 115. 1 117.8 118.8 119.8 100. 5 100.6 100.7 100.9 101. 1 101. 8 103.7 104.7 105.3 106.3 Period Change: Oct. 1941-Sept. 1941 Oct. 1941-Oct. 1940. 1 + 0. 8 % + 9.7% Paint and paint materials Plumbing and heating Structural steel 110.9 105.4 104.2 103.5 99.4 99.5 99.7 99.8 127.4 130.8 132.3 104.3 105.4 105.0 105.8 105.8 105.8 103.5 103.5 103.5 101.4 101.9 102.2 99.7 99.7 99.7 99.9 100.4 100.9 101. 1 101. 1 101.2 101.7 131.9 130.5 130.0 130.0 130.1 131.0 136.2 142.0 143.8 144.2 106.6 106.5 107.5 109. 1 109.8 111.0 112.6 114.7 116. 4 118.0 105.8 108.0 108.8 109.0 109.0 109.2 109.3 114.0 114.4 115.3 103.5 103. 5 103.5 103.5 103.5 103.5 103.5 103.5 103.5 103.5 102.6 102.6 103.0 103.7 104.1 104.8 106.4 108.0 108.4 109.8 Cement J Lumber + 0. 3 % + 1.4% + 0. 5 % + 13.2% + 13.1% + 2.2% + 0. 9% + 7.0% + 0.8% + 9. 0 % 0. 0 % 0. 0 % Other + 1.3% + 8.3% Based on delivered prices at 48 cities and introduced into the calculation of the Bureau's general indexes of wholesale prices beginning with March 1939. Table 6.—Estimated volume of new home-mortgage loans by all savings and loan associations, by purpose and class of association [Thousands of dollars] Class of association Purpose of loans Period 1939. January-October _ _ October __ 1940 January-October _ _ October November December _ Construc- Home pur- Refinancing tion chase Reconditioning Loans for all other purposes Total loans Federals State members Nonmembers $301, 039 $339, 629 $182, 025 $59, 463 $104, 227 $986,383 $400, 337 $396, 041 $190, 005 247, 509 29, 255 281, 416 33, 383 151, 579 15, 835 50, 408 5,784 86, 283 9, 040 817, 195 93, 297 331, 499 37, 854 328, 161 37, 847 157, 535 17, 596 398, 632 426, 151 198, 148 63, 583 113,065 1, 199, 579 509, 713 483, 499 206, 367 336, 016 41, 610 32, 584 30, 032 360, 811 40, 771 33, 875 31, 465 169, 132 16, 840 14, 441 14, 575 54, 466 5, 756 4,869 4,248 433, 102 48, 307 38, 896 37, 715 406, 627 46, 224 40, 143 36, 729 176, 730 19, 869 15, 528 14, 109 26, 662 26, 483 33, 250 38, 686 40, 975 44, 207 44, 918 42, 987 40, 782 27, 809 30, 283 41, 784 48,311 54, 781 55, 993 55, 682 55, 973 58, 052 13, 645 14, 204 16, 903 16, 905 18, 506 17, 891 16, 816 15, 785 15, 871 3,784 3,573 4,765 6,368 5, 930 5,633 6,022 5,571 5,884 96,034 1,016,459 1 9, 423 114,400 8,798 94, 567 8,233 J 88,553 1 1941 January February March April May June.-July August September. _ October p preliminary. 94 *>1,174,689 [ "501, 121 *> 492, 824 *> 180, 774 34,360 33, 947 8, 540 12, 133 80, 440 ! 35,645 35, 301 7, 787 11,384 82, 330 ! 45, 365 43, 947 8,460 105, 162 15, 850 51,371 50, 956 10,361 1 120,631 1 18, 304 54, 495 21, 062 10,761 55, 396 130,953 21,241 54, 857 9,916 57, 542 133,640 ! 20, 732 9,534 55, 676 56, 564 132,972 17, 593 9,411 54, 542 57, 592 129, 727 r r r r 20, 845 9,345 54, 303 54, 786 129, 934 *> 54, 800 p 21, 600 P 52, 500 " 138, 900 r revised. Federal Home Loan Bank Review Table 7.—Estimated volume of new home-mortsage loans by all savings and loan associations, by Federal Home Loan Bank District and class of association [Amounts are shown in t h o u s a n d s of dollars] New loans Federal H o m e Loan B a n k District a n d class of association September 1941 $129, 54, 54, 20, August 1941 934 $129,727 786 57, 592 303 54, 542 " 845 17, 593 United States: Total _ _ Federal State m e m b e r Nonmember District No. 1: Total Federal State m e m b e r _ Nonmember. _ . 15,019 5,415 7,734 1, 870 14, 559 5,203 7,575 1,781 District No. 2- Total Federal State member Nonmember _ _ _ 14, 288 4,866 4,329 5,093 District No. 3: Total __ F e d e r a l . _ __ State m e m b e r Nonmember District No. 4: T o t a l __ ___ Federal State m e m b e r . Nonmember __ Percent change, August 1941 to September 1941 New loans, September 1940 + 0 . 2 $111,775 46, 480 -4.9 45, 988 -0. 4 19, 307 + 18.5 Percent change, September 1940 to September 1941 Cumulative new loans (9 months) 1941 + 16.2 $1, 045, 789 + 17.9 448, 621 438, 024 + 18. 1 159, 144 + 8.0 1940 Percent change $902, 384, 360, 156, 059 795 403 861 + 15. 9 + 16.6 + 21.5 + 1.5 3.2 4. 1 2.1 5.0 11, 346 3,717 5,863 1,766 + 32.4 + 45.7 + 31.9 + 5.9 109, 38, 55, 15, 730 194 826 710 83, 28, 40, 13, 634 758 915 961 + + + + 31. 2 32.8 36.4 12.5 12, 234 4,291 4,077 3,866 + 16.8 + 13.4 + 6.2 + 31.7 12, 804 3,387 3,272 6, 145 + 11.6 + 43. 7 + 32.3 -17. 1 101,812 30, 365 31, 257 40, 190 83, 24, 23, 35, 355 831 390 134 + + + + 22. 1 22.3 33.6 14.4 10, 925 3,999 2,351 4,575 9,788 4,002 2,459 3,327 + 11.6 -0. 1 -4.4 + 37.5 7,960 3, 165 2, 155 2,640 + 37.2 + 26.4 + 9.1 + 73.3 82, 32, 21, 29, 542 048 148 346 70, 421 27, 107 17, 800 25,514 + + + + 17.2 18.2 18.8 15.0 17, 788 8,525 7,402 1,861 18, 883 9,511 7,852 1,520 -5.8 -10. 4 -5.7 + 22.4 16, 224 8,015 6,482 1,727 + 9.6 + 6.4 + 14.2 + 7.8 143, 69, 60, 12, 298 799 831 668 131, 63, 50, 16, 139 990 968 181 + 9.3 + 9. 1 + 19.4 -21.7 21, 7, 10, 3, 702 996 550 156 21, 242 8,043 10, 464 2,735 + 2.2 -0.6 + 0.8 + 15.4 18, 308 6,619 9, 143 2,546 + + + + 178, 66, 88, 23, 821 589 983 249 150, 55, 72, 22, 664 738 382 544 + 18.7 + 19.5 + 22.9 + 3.1 6,693 3,383 3,041 269 6,953 3,492 3,261 200 -3.7 -3. 1 -6.7 + 34.5 6,178 3,028 2,756 394 + 8.3 + 11.7 + 10.3 -31. 7 46, 851 22, 742 21, 367 2,742 + 14.3 + 20.0 + 13.4 -25.6 92, 36, 41, 14, 296 641 389 266 + 13.3 + 10.4 + 20.6 -0.5 + + + + 18.5 20.8 15.4 24.0 District No. 5: Total Federal State member _ Nonmember District No. 6: Total Federal State member _ Nonmember District No. 7: Total_ Federal State m e m b e r Nonmember, 12, 160 4, 720 5,981 1,459 12, 293 4,927 6,016 1,350 -1. 1 -4.2 -0.6 + 8.1 10, 888 4,232 5,270 1,386 + 11.7 + 11. 5 + 13. 5 + 5. 3 District No. 8: Total Federal _ State member Nonmember 7,266 3,459 2,570 1,237 7,943 3,905 2, 556 1,482 -8.5 -11. 4 + 0. 5 -16.5 6,946 3,543 2, 192 1,211 + 4. 6 -2. 4 + 17.2 + 2.1 57, 727 28, 791 19, 101 9,835 55, 793 27, 207 16, 924 11,662 + 3. 5 + 5. 8 + 12.9 -15.7 District No. 9: Total Federal _ _. State member Nonmember 6,329 2,576 3,614 139 6,338 2,738 3,505 95 -0. 1 -5.9 + 3.1 + 46.3 5,080 1,970 2,995 115 + + + + 24.6 30.8 20.7 20. 9 51, 248 21, 595 28, 403 1,250 45, 919 18, 336 25, 810 1,773 + 11. 6 + 17. 8 + 10.0 -29. 5 District N o . 10: T o t a l _ _ __ Federal State member Nonmember 5, 131 2,837 1,351 943 5, 563 3, 125 1,399 1,039 -7.8 -9.2 -3.4 -9.2 4,358 2, 273 1, 100 985 + 17.7 + 24.8 + 22.8 -4.3 42, 168 23, 278 10, 205 8,685 39, 622 20, 747 9,070 9,805 + 6. 4 + 12. 2 + 12.5 -11.4 District No. 11: T o t a l ___ Federal State member Nonmember 4,021 2, 518 1,335 168 4,357 2,783 1,412 162 -7.7 -9.5 -5. 5 + 3. 7 3,770 2,364 1,262 144 + 6. 7 + 6.5 + 5.8 + 16.7 37, 939 24, 711 11, 999 1,229 31, 761 19, 686 10, 731 1,344 + 19. 5 + 25. 5 + 11.8 -8.6 8,612 4,492 4,045 75 9,574 5,572 3,966 36 -10.0 -19.4 + 2.0 +108. 3 7,913 4,167 3,498 248 + 8.8 + 7.8 + 15.6 -69.8 82, 359 45, 501 36, 115 743 70, 604 39,012 29, 657 1, 935 + 16.6 + 16.6 + 21.8 -61.6 District No. 12: T o t a l _ F e d e r a l . __ _ State m e m b e r Nonmember December 1941 _ 53, 560 27, 283 24, 236 2,041 104, 40, 49, 14, 585 467 920 198 95 Table 8.—Summary of estimated nonfarm mortgage recordings, $20,000 and under, during October 1941 (Amo un t s S hown a r e i n - hou s a n d s of d o l l a r s ) f Savings & Loan Other Mut ual Insurance Banks and 1 Total Indiv i d u a l s mortgagees companies |t r u s t companies savings banks associ ations | Number Amount Number Amount Number Amount ' Numbe r Amount Numbe r Amount Number Amount Number Amount F e d e r a l Home Loan Bank D i s t r i c t and S t a t e I 49,574f 5138,6701 UNITED STATES No. 8,271 1 $39,896 132,386 $106,109 286 1 1,731 1 1,170 4,621 2,994 11,070 3,131 7,566 756 2,737 12,920 43,537 481 I2S 403 35 104 21 2,153 371 1,539 120 364 74 651 173 1,630 243 143 149 2,527 389 6,043 989 514 608 795 138 1,793 94 252 58 2,155 193 4,258 253 535 162 473 35 175 7 62 4 3,047 673 7,417 552 838 338 11,606 1,640 24,410 1,893 2,924 1,164 1,828 8,721 4,077 9,844 1,834 1,702 99 592 41 278 25 7,269 13,715 49,191 479 113 1 ,715 8,242 1,592 2,485 3,636 6,208 820 1,014 2,969 4,300 5,313 8,402 3I,4I0| 5,9l2 35,034 1 [ 1,583 1 15,912 I —Boston Connecticut _ _ 449 Maine 188 3,365 Massachusetts ' - 170 New Hampsh i r e Riode Island __ _ __ __ 307 104 Vermont _ 1 No. 2—New York 197 18 51 3 15 2 1 ,1 98 95 340 17 71 10 10,187 443 2,450 2,615 10,720 1,1261 3,640 1,787 1 6,547 221 227 970 1,480 1,441 1,174 6,087 4,633 3,658 2,913 N3w J e r s e y New York 1,871 493 11,638 463 1,162 285 5,633 $22,788 37,167 $74,891 r 19,125 $65,636 152,156 $447,990 17,781 1 9,594 78 8,741 775 469 2,366 306 11,632 153 1,787 416 268 8,819 2,346 19 267 20 79 989 13 69 2,021 501 147 4,820 945 1,223 16 1,027 180 4,648 30 367 72 3,385 63 2,464 858 1 1,433 24 ' 3,208 426 43 4,152 453 221 9,354 2,057 778 29,308 4,948 4--Winston-Salem 6,854 18,792 1,289 5,506 2,766 7,299 78 309 5,198 9,552 Alabama D i s t r i c t of Columbia Florida _ Georgia Maryland North C a r o l i n a South C a r o l i n a Virginia 234 498 3,132 573 2,563 858 2,025 1,031 4,217 1,533 3,398 1,305 248 559 1,022 i 2,400 8,309 25,183 203 75 445 169 43 171 49 134 780 536 1,652 849 236 681 248 524 241 98 314 646 306 409 215 537 471 644 857 1,177 911 1,337 335 1,567 848 4,453 4,017 12,512 Kentucky Ohio Tennessee 1,123 6,939 247 2,715 21,763 705 135 472 241 618 2,742 1,093 569 2,717 731 1,447 9,037 2,028 6—Indianapolis 3,665 7,912 967 4,536 3,845 2,540 1,125 4,830 3,082 340 627 1,539 2,997 1,262 2,583 7—Chicago 4,754 14,211 543 2,818 111inois Wisconsin 3,680 1,074 11,051 3,160 337 156 2,098 720 No. 8—Des Moines _ 3,797 8,719 313 Iowa __ Minnesota Missouri North Dakota South Dakota 930 1,242 1,356 156 113 1,996 3,202 2,918 424 179 147 363 240 24 39 3,238 236 820 165 103 1,914 7,996 478 2,595 309 245 4,369 1,118 82 201 90 7 733 2,793 6,208 1,097 1,567 1,509 2,035 1,762 104 129 386 173 839 81 No. 3--Pittsburgh Delaware. _ _ _ _ _ Pennsylvania West Virgin ia_ No. _ _ No. 5—Cincinnati No. _ Indiana Michigan No. _ _ _ _ No. 9 — L i t t l e Rock Arkansas Louisiana Mississippi New Mexico Texas No. 10— Topeka Colorado Kansas Nebraska Oklahoma No. _ II— Portland _ _ _____ _ ,_ ___ ,_ 2,591 3,005 3,467 19,190 49,925 544 472 890 971 557 919 198 547 856 1 ,416 1,935 1,259 1,161 1,122 451 1,352 387 177 375 513 222 468 164 699 1,027 917 1,166 1,214 683 1,253 459 1,748 1,659 1,395 2,882 3,330 2,739 3,272 874 3,039 3,632 6,645 8,173 6,524 7,517 7,791 2,052 7,591 $4.85 7.63 2.62 5.92 4.70 4.36 4.72 4.55 2.65 4.06 3.34 3.87 2.78 13.63 6.87 4.38 5.39 4.96 2.50 5.16 73 309 182 754 2,796 57362 1,830 5,585 17,982 53,849 182 754 313 2,155 323 341 4,408 613 100 929 801 289 3,225 2,071 2,240 13,394 2,348 5,410 41,929 6,510 10,816 14 32 1,564 ' 3,236 1,204 4,646 11,259 31,178 3,597 7,219 14 32 510 1 ,054 886 2,350 265 939 811 3,835 4,931 6,328 ' 11,695 1 19,483 2,176 8,208 6 10 2,737 6,230 2,218 9,888 12,434 41,365 I 1,437 739 5,957 2,251 6 10 1,515 1,222 3,601 2,629 1,952 8,952 266 .u 936 8,971 3,463 31,659 1 9,706 3,674 2,715 6,739 43 170 2,653 4,199 1,916 5,422 11,937 28,923 1 589 1,568 1,264 99 154 691 653 1,209 57 105 1,685 1,491 3,257 96 210 491 779 1,210 73 100 771 1,468 1,646 131 133 224 252 1,386 23 31 714 739 3,795 64 6Q 2,433 3,332 5,401 •333 383 5,755 8,688 12,880 814 786 i 3.85 5.21 5.12 2.87 2.60 4,684 317 918 348 43 3,058 922 142 82 121 55 522 2,610 296 169 243 242 1,660 2,467 250 401 252 117 1,447 4,335 497 705 429 208 2,496 1,920 104 507 156 21 1,132; 5,586 170 1,509 380 42 3,485 9,665 814 2,011 784 303 5,753 25,211 1,758 5,896 1,709 780 15,068 2.39 4.64 2.64 2.95 4.34 479 1 ,860 915 2,230 1,744 2,619 977 3,368 6,913 16,285 37 47 301 94 134 178 1,163 385 123 329 116 344 231 726 400 823 ____ 677 293 215 559 1,146 359 374 740 285 194 115 383 1,178 570 349 1,271 1,532 1,684 1,439 2,258 3,836 3,400 3,795 5,254 4,505 296 1,164 1,406 3,363 182 1,450 2,321 1,057 »3,535 6,153 16,029 183 346 1,121 509 2,078 268 13 23 81 39 140 59 129 313 119 544 78 74 156 337 721 40 338 213 328 1,133 1,698 153 173 150 595 III 343 78 275 302 900 169 578 97 103 34 295 50 537 38 304 62 903 143 1,993 130 1,159 1,052 3,516 2,073 7,481 648 3,243 9,451 715 4,654 6,454 25,05e 1 6,759 13,715 1,185 4,485 471 410 1,528 710 2,797 237 18,356 57,363 102 3,118 23 284 9,104 63 5 19 4,631 4 128 462 6,298 2 4 , 4 D 3 103 28 | 43 1,132 10 115 4,344 26 627 17,589 140 1,585 55,425 353 407 821 692 878 1 _ 12—Los Angeles Arizona _ California Nevada __ _ _ _ Idaho Montana _ Oregon Utah Washington Wyoming No. _ _ _ 1,081 Amount per capita (non farm) 1 j 709 \ f 43 170 -___ 641 15 51 167 590 349 6,332 78 705 12,853 157 3.76 7.44 4.65 4.82 4.80 4.77 4.72 5.09 2.90 4.79 3;33 4.52 3.16 4.95 5.29 5.94 4.25 4.71 10.96 4.73 1 3ased upon county reports submitted through the cooperation of savfmjs and loan associations, the U. S. Savings and Loan League, the Mortgage Bankers Association, and the American Title Association. 96 Federal Home Loan Bank Review Table 9.—Estimated volume of nonfarm mortgages recorded, by type of mortgagee [Amounts are shown in thousands of dollars] Savings a n d loan associations Insurance companies Mutual savings banks Banks a n d trust companies Individuals All mortgagees Other mortgagees Period Total Number: 1940: October November.. December. J Percent Total Percent Total Percent Total Percent Total Percent Total Percent Combined total Percent 6, 977 5, 816 5, 736 5.0 5.0 4.9 31, 202 2 2 . 5 25, 988 2 2 . 3 25, 837 2 2 . 3 4,548 4,024 3,847 3.3 3.4 3.3 30, 635 22. 1 16, 975 1 2 . 3 138, 482 100.0 27, 507 2 3 . 6 14, 239 12.2 116, 754 100.0 27, 823 2 4 . 0 14, 680 12.7 115,907 100.0 5, 523 34, 459 3 1 . 4 1941: J a n u a r y 4,753 F e b r u a r y . . . 34, 909 3 2 . 6 42, 496 3 4 . 2 ' 5, 651 March 6, 583 April 48, 266 3 4 . 6 52, 802 35. 1 7, 190 May 7, 655 50, 393 3 6 . 0 J u n e . . . __ 7,602 51, 882 3 4 . 4 July 7,298 50, 057 3 4 . 6 August 7,433 49, 262 3 3 . 7 September.. 8,271 49, 574 3 2 . 6 October Amount: 1940:October $125, 009 32. 2 $33, 818 N o v e m b e r . . 102, 267 3 1 . 2 27, 900 D e c e m b e r . _ 98, 765 3 0 . 2 28, 666 5.0 4.4 4.5 4.7 4.8 5.2 5.0 5.0 5. 1 5. 4 24, 204 23,711 26, 820 30, 065 32, 148 32, 769 32, 343 30, 731 31, 001 32, 386 22. 1 22. 1 21.6 21.6 21.4 22. 1 21.4 21.2 21.2 21. 3 3,392 2,985 3,571 4,512 5,258 5,437 5,469 4,990 5, 197 5,633 3. 1 2.8 2.9 3.2 3.5 3.7 3.6 3. 5 3. 6 3.7 28, 27, 30, 33, 35, 34, 35, 34, 34, 37, 1941: J a n u a r y February-.. March April May June... , July August September _ October 48, 145 3 4 . 8 39, 180 3 3 . 5 37, 984 3 2 . 8 89, 996 91, 182 113, 574 129, 348 143, 770 139, 647 142,695 139, 156 135, 754 138, 670 29.3 30.7 32.6 32.5 33.0 32.4 32.2 32.5 31.9 31. 0 27, 23, 27, 32, 35, 37, 37, 35, 36, 39, 691 716 842 313 635 372 262 995 250 896 78, 74, 86, 98, 107, 107, 108, 105, 100, 106, 977 526 178 076 151 827 555 153 712 109 Table 10.—Estimated nonfarm real estate foreclosures, by size of county 25.7 25. 1 24.7 24.6 24. 6 25. 1 24. 5 24.6 23.7 23. 7 26.0 25.7 25.0 24.2 23.4 23.4 23.6 23.6 23. 9 24.4 13, 13, 14, 16, 17, 16, 18, 17, 18, 19, 617 303 666 305 769 970 180 510 295 125 12.4 12.4 11.8 11.7 11.8 11.5 12.0 12. 1 12. 5 12. 6 109, 689 107, 144 124, 194 139, 525 150, 342 147, 837 151,110 144, 747 146, 170 152, 156 12, 931 11, 662 14, 016 16, 888 19, 705 ! 20, 503 21,080 19,213 20,802 22, 788 1 4.2 3.9 4.0 4.2 4 -5 4.8 4.8 4. 5 , 4.9 5. 1 53, 891 52, 442 59, 646 65, 708 69, 836 67, 380 71, 456 69,002 70,377 74, 891 17.5 17.7 17. 1 16.5 i 16,0 15.6 16. 1 | 16. 1 16.6 16. 7 44, 154 43, 335 47, 624 55,972 59, 864 57,487 61,991 59, 580 61,034 65,636 14.3 14.6 13.6 14. 1 13.7 13.4 14.0 13.9 14.4 14. 6 307, 640 296, 863 348, 880 398, 305 435, 961 430,216 443, 039 428, 099 424, 929 447, 990 Period Less than 5,000 5,000- 20,000- 60,000 and 19,999 59,999 over 63, 839 6, 447 618 6,305 603 5,832 5,639 635 9, 505 13, 348 34, 539 1,319 3,471 897 1,343 3,054 832 1,103 3,082 819 1941: J a n . - O c t 49,840 5,496 607 January.. _ 5,474 February 526 4,950 M a r c h _ __ 5,650 621 April __ 5,445 587 5,375 May. _ _ _ 630 5,047 630 June 4,834 437 July 4,251 399 A u g u s t . _ _r 515 September 4 , 374 544 October 4,408 7,636 10, 743 25, 965 1, 180 2 , 8 8 7 800 789 1,009 2, 626 1,191 2,968 870 1, 119 2,886 853 837 1,236 2,672 727 1, 149 2,541 741 959 2 , 6 9 7 668 948 2,236 r 654 9 7 5 2,230 697 945 2,222 1940: J a n . - O c t October __ November December Period revised. December 1941 Number of p r o p erties acquired 1 Number of p r o p erties sold Number of properties on h a n d a t end of month 1940: October November December 1,719 1,728 1,580 3,886 3,253 2,706 54, 433 52, 878 51, 722 1941: J a n u a r y _ _ _ February March April May June July August September,. October. 1,638 1,340 1,327 1,226 1,080 1,270 803 665 681 642 2, 425 2,223 2,369 2,464 2,458 2,296 1,788 1,793 1,790 1,721 50, 865 49, 940 48, 856 47, 588 46, 170 44,922 43, 933 42, 807 41, 698 40, 614 1 r 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Table 11.—Property operations of the H ome Owners' Loan Corporation C o u n t y size (dwellings) U. S. total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4 . 3 $59, 124 15.2 $55, 734 1 4 . 3 $388, 973 100. 0 4 . 6 51, 504 15.7 47, 621 1 4 . 6 327, 385 100.0 4 . 6 51, 964 15.9 48, 885 15.0 326, 624 100.0 8 . 7 $98, 462 2 5 . 3 $16, 826 8 . 5 82, 971 2 5 . 4 15, 122 8 . 8 83, 426 2 5 . 5 14, 918 9.0 8.0 8.0 8. 1 8.2 8.7 8.4 8.4 8.5 8. 9 494 483 990 794 175 613 634 161 982 167 Includes reacquisitions of properties previously sold. 97 Table 12.—Progress of institutions insured by the Federal Savings and Loan insurance Corporation [Amounts are shown in thousands of dollars] Operations Number of associations Period a n d class of association ALL INSURED Total assets N e t first mortgages held Private repurchasable capital Government investment Federal Home Loan Bank advances N u m b e r of investors New private investments Private repurchases New mortgage loans ' 1939: J u n e December. 2, 170 $ 2 , 3 3 9 , 4 1 1 $1,769, 112 $1, 657, 859 $259, 943 $127, 062 2, 506, 944 1, 943, 852 1,811, 181 250, 725 142, 729 2,195 1940: September. October November. December. 2,259 2,264 2,269 2,276 2, 2, 2, 2, 789, 832, 867, 931, 391 083 817 781 2, 2, 2, 2, 250, 291, 317, 342, 905 477 292 804 2, 2, 2, 2, 085, 114, 143, 202, 410 831 360 135 220, 220, 220, 220, 569 629 689 789 144, 150, 154, 171, 1941: J a n u a r y . . February.. March April May June July August September. 2,282 2,289 2,292 2,297 2,302 2,310 2,313 2,319 2,326 2, 2, 2, 3, 3, 3, 3, 3, 3, 929, 959, 991, 034, 079, 158, 154, 185, 222, 247 330 565 528 396 251 228 814 299 2, 359, 2, 384, 2, 416, 2, 457, 2, 501, 2, 554, 2,595, 2, 636, 2, 672, 057 160 680 438 582 274 114 536 985 2, 2, 2, 2, 2, 2, 2, 2, 2, 262, 296, 323, 354, 379, 433, 449, 465, 486, 692 225 041 239 856 513 807 223 992 216, 206, 206, 206, 206, 206, 203, 195, 195, 485 015 094 078 304 301 512 572 584 997 700 802 347 2, 236, 000 $40, 700 $15, 800 $55, 848 2, 386, 000 48, 400 17, 445 49, 516 2, 2, 2, 2, 664, 695, 706, 772, 200 800 300 400 46, 53, 49, 65, 203 982 990 586 30, 30, 25, 22, 928 286 278 865 68, 71, 57, 56, 141, 450 129, 437 119,461 115,372 119,242 114, 331 142,870 147, 044 153, 897 2, 802, 700 127, 490 2, 869, 500 65, 384 2, 896, 100 64, 633 2, 924, 000 65, 947 2, 943, 300 57, 755 2, 974, 500 61, 448 2, 998, 100 103, 886 3,019,600 62, 374 3, 037, 800 61, 495 75, 37, 39, 39, 35, 26, 90, 48, 42, 228 081 605 194 122 779 728 010 800 52, 270 53, 765 69, 313 77, 735 82, 443 85,117 84, 994 84, 794 82, 993 8, 100 9,231 39, 094 34, 053 665 380 686 363 FEDERAL 1939: J u n e . . . . 1,383 D e c e m b e r , 1,397 1, 441, 058 1, 574, 314 1, 135,511 1, 268, 872 990, 248 1, 108, 481 217, 026 208, 777 88,298 105, 870 1, 299, 100 1, 412, 200 27, 000 32, 000 1, 1, 1, 1, 181,261 181, 371 181,381 181,431 106, 674 110, 583 114,070 127, 255 1, 1, 1, 1, 400 800 600 200 31, 37, 34, 44, 184 309 092 531 19, 18, 14, 12, 414 583 867 135 46, 48, 38, 37, 177, 168, 168, 169, 169, 169, 166, 159, 159, 265 873 922 047 247 247 464 622 614 102, 973 92, 558 84, 810 81, 076 83, 674 103, 696 102, 513 106, 624 112,033 1, 709, 800 1, 736, 900 1, 758, 400 1, 780, 100 1, 792, 700 1, 806, 200 1, 822, 700 1,841,600 1, 856, 400 87, 45, 44, 45, 38, 40, 70, 40, 40, 950 587 390 058 423 030 290 730 254 49, 23, 23, 23, 20, 14, 61, 30, 26, 852 131 618 376 582 530 061 443 765 34, 360 35, 645 45, 365 51,371 55, 396 57, 542 56, 564 57, 592 54, 786 936, 900 973, 800 13, 700 16,400 7,700 8,214 16, 754 15, 463 061, 071, 078, 107, 15, 16, 15, 21, 487, 514, 532, 545, 489 872 745 838 309, 329, 349, 387, 421 364 761 839 1940: September. O c t o b e r . __ November December. 1,430 1,433 1,435 1,438 1, 1, 1, 1, 775, 804, 829, 872, 555 397 939 691 1, 1, 1, 1, 1941: J a n u a r y — February... March April May June July August1 September 2 , 1,439 1,441 1,442 1,445 1,447 1,450 1,452 1,454 1, 456 1, 1, 1, 1, 1, 2, 2, 2, 2, 872, 890, 915, 945, 977, 028, 022, 049, 075, 744 266 054 949 162 045 886 184 513 1, 563, 038 1, 577, 498 1, 599, 592 1, 627, 545 1, 656, 899 1, 687, 088 1, 715, 819 1,749,214 1, 774, 371 1,436,443 1, 458, 840 1, 480, 866 1, 504, 271 1, 522, 675 1, 554, 374 1, 565, 799 1, 579, 671 1, 595, 119 898, 353 932, 630 633, 601 674, 980 667,611 702, 700 42, 917 41, 948 38, 764 36, 859 013, 027, 037, 059, 602, 624, 627, 665, 480 307 896 715 STATE 1939: J u n e December. 787 798 1940: September. October November. December. 829 831 834 838 1, 1, 1, 1, 836 686 878 090 763, 776, 784, 796, 416 605 547 966 775, 785, 793, 814, 989 467 599 296 39, 39, 39, 39, 308 258 308 358 38, 40, 40, 44, 323 117 732 092 1, 1, 1, 1, 1941: J a n u a r y __ FebruaryMarch April May June July August September, 843 848 850 852 855 860 861 865 870 1, 056, 503 1, 069, 064 1,076,511 1, 088, 579 1, 102, 234 1, 130, 206 1, 131, 342 1, 136,630 1, 146, 786 796, 806, 817, 829, 844, 867, 879, 887, 898, 019 662 088 893 683 186 295 322 614 826, 837, 842, 849, 857, 879, 884, 885, 891, 249 385 175 968 181 139 008 552 873 39, 37, 37, 37, 37, 37, 37, 35, 35, 220 142 172 031 057 054 048 950 970 38, 36, 34, 34, 35, 40„ 40, 40. 41, 477 879 651 296 568 635 357 420 864 1, 092, 900 1, 132, 600 1, 137, 700 1, 143, 900 1, 150, 600 1, 168, 300 1, 175, 400 1, 178,000 1, 181, 400 800 000 700 200 019 673 898 055 39, 540 19, 797 20, 243 20, 889 19, 332 21,418 33,596 21, 644 21, 241 11,514 11, 703 10,411 10, 730 22, 23, 18, 18, 185 073 790 648 25, 13, 15, 15, 14, 12, 29, 17, 16, 17, 18, 23, 26, 27, 27, 28, 27, 28, 910 120 948 364 047 575 430 202 207 376 950 987 818 540 249 667 567 035 i In addition, 5 converted Federals with assets of $2,201,000 were not insured as of August 31, 1941. 2 In addition, 3 converted Federals with assets of $1,211,000 were not insured as of September 30, 1941. 98 Federal Home Loan Bank Review Table 13.—Lending operations of the Federal Home Loan Banks Table 14.—Government investments in savings and loan associations1 [Thousands of dollars] [Amounts are shown in thousands of dollars] October 1941 Federal H o m e 'Loan Bank Boston New York Pittsburgh. _ Winston-Salem Cincinnati _ Indianapolis _ _ Chicago Des Moines Little Rock Topeka _ _ Portland __ Los Angeles Total J a n .-Oct. 1941 October 1940 J a n .-Oct. 1940 October 1939 J a n . - O c t . 1939 Repayments Advances September 1941 Advances $3, 072 1,812 792 2,027 340 506 1,941 711 320 130 295 1, 193 $517 $1, 119 753 2 , 7 1 2 789 610 1,949 1,391 545 748 527 295 1,790 1,066 803 163 440 163 491 454 450 315 544 1,235 13, 139 7,019 12, 850 Repayments $493 660 626 566 1,090 433 1,707 285 324 261 304 538 Treasury Advances outstanding October 3 1 , 1941 T y p e of operation Federals2 Oct. 1935—Oct. 1941: Applications: Number. _ Amount Investments: Number Amount Repurchases N e t outstanding investments _ $12, 506 21, 167 16, 485 22, 636 14, 643 11, 117 29, 368 15, 900 8,779 8,225 6,625 16, 860 October 1941: Applications: Number _ Amount Investments: Number A m o u n t . __ _ _ R e p u r c h a s e s . __ 7,287 184, 311 107, 503 124, 684 12, 067 6,588 101, 826 101, 613 9,605 4 , 6 3 8 70, 230 100,418 H o m e Owners' Loan Corporation 181, 526 168, 654 Federals State members Total 1,862 4, 686 5,675 989 $50, 401 $210, 913 $64, 875 $276, 788 1,831 4,964 4, 226 738 $49, 300 $177, 168 $45, 631 $222,799 $28, 016 $38, 677 $9, 404 $48, 081 $21, 284 $138, 491 $36, 227 $174, 718 0 0 6 $1, 035 1 $100 7 $1, 135 0 0 0 3 $175 $72 1 $100 $8 4 $275 $80 1 Refers to number of separate investments, not to number of associations in which investments are made. 2 Investments in Federals by the Treasury were made between December 1933 and November 1935. Table 75.—Changes in selected types of private long-term savings [Amounts are shown in thousands of dollars] A m o u n t s sold during m o n t h Period Life insurance 1 1940: October November _ December 1941: J a n u a r y February March April _ May. . . . . June _ "July August September October U.S. savings bonds 2 $573, 504 $52, 221 505, 474 50, 080 596, 534 82, 207 r r 522, 537, 598, 597, 604, 594, 582, 581, 581, 658, 762 557 217 203 162 164 292 171 998 339 189, 276 120, 680 131,961 61, 968 100, 581 102, 517 145, 274 117, 603 105, 241 122, 884 Amounts o u t s t a n d i n g a t end of m o n t h Insured U. S. savings savings bonds 4 and l o a n s 3 $53, 982 49, 990 65, 586 127, 65, 64, 65, 57, 61, 103, 62, 61, 490 384 633 947 755 448 886 374 495 $3, 084, 021 3, 123, 036 3, 194, 793 3, 3, 3, 3, 3, 3, 3, 4, 4, 4, Change: Last 6 months i Life Insurance Sales Research Bureau. Face amount of policies sold, excluding group insurance. ' 17. <S. Treasury Daily Statement. Gash sales, including unclassified sales. From May 1941: Defense Savings Bonds, Series E. « New private investments; amounts paid in as reported to the FHLBB. < U. 8. Treasury Daily Statement. Current redemption value. From May 1941: Defense Savings Bonds, Series E. December 1941 371, 480, 598, 647, 758, 853, 992, 102, 199, 313, Postal savings5 Mutual savings banks 6 Insured commercial banks7 Insured savings a n d loans 8 $1, 295, 859 $2, 114, 831 1, 298, 429 2, 143, 360 1, 304, 382 $10, 617, 759 $13, 062, 315 2, 202, 135 135 040 546 249 822 297 095 528 539 973 1, 313, 954 1, 317, 794 1, 319, 959 1, 317, 102 1, 310, 027 1, 304, 041 1, 306, 928 1, 308, 839 1, 311,060 1, 317, 293 + 18.28% + 0. 0 2 % 10, 606, 224 13, 107, 022 -0.11% + 0. 3 4 % 2, 2, 2, 2, 2, 2, 2, 2, 2, 262, 296, 323, 354, 379, 433, 449, 465, 486, 692 225 041 239 856 513 807 223 992 + 7. 0 6 % 4 U. S. Post Office Department. Outstanding principal, represented by certificates of deposit, excluding accrued interest, outstanding savings stamps, and unclaimed deposits. Figures for the last two months are preliminary. 8 Month's Work. All deposits. 7 FDIC. Time deposits evidenced by savings passbooks. • Private repurchasable capital as reported to the FHLBB. 'Revised. 99 ILLINOIS: Filing Systems Chicago: St. James Building and Loan Association, 5717 West Fullerton Avenue (merger with Cragin Savings and Loan Association). ( Continued from p. 82) KANSAS: loan. The form is so arranged that the signatures of the appraisers, as well as that of the borrower, may be easily found by examiners and others who must deal with the documents. 8. Assignment oj rent. Although this paper is obtained on every loan made by the association, it is filed only on those properties where the management feels it is necessary. 9. Supplemental agreement. 10. Supplemental application. These two forms are used only when a customer needs additional funds or desires to refinance his loan with some change in payments. 11. Loan closing sheet. This last sheet is prepared in duplicate and a copy is given to the mortgagor. It shows to whom and for what purpose all deductions were made from the amount of money loaned. Papers other than those named above are fastened on the opposite side of the folder. Abstracts in the county in which this association operates are so bulky that it was found necessary to keep them in a separate file in numerical order where they can be found or checked readily. Directory of Member Institutions Abilene: Dickinson County Building and Loan Association, 315 Broadway (liquidation). MARYLAND: Baltimore: Calverton Perpetual Building Savings and Loan Association, 710 Poplar Grove Street (sale of assets to Loyola Federal Savings and Loan Association). MISSOURI: Kansas City: Jackson County Savings and Loan Association, 916 Walnut Street (sale of assets to First Federal Savings and Loan Association of Kansas City). N E W JERSEY: Newark: Guardsmen Building and Loan Association, 201 Mt. Prospect Avenue (member's request). Tuckahoe: Tuckahoe Building and Loan Association (member's request). Union City: Dispatch Building and Loan Association, 707 Summit Avenue (voluntary liquidation). PENNSYLVANIA: Philadelphia: Broad and Chestnut Streets Building and Loan Association, 27 Soutb Sixteenth Street (voluntary liquidation). Peirce School Federal Savings and Loan Association, 1214 Locust Street (merger with First Wayne Federal Savings and Loan Association of Wayne, Pennsylvania). Pittsburgh: Knoxville Building and Loan Association, 137 Bausman Street (voluntary liquidation). II. FEDERAL SAVINGS AND LOAN ASSOCIATIONS CHARTERED BETWEEN OCTOBER 16 AND NOVEMBER 15, 1941 DISTRICT NO. 1 CONNECTICUT: Thompson ville: Enfield Federal Savings and Loan Association, 25 Pearl Street (converted from Thompsonville Savings and Home Loan Association). DISTRICT NO. 3 PENNSYLVANIA: Pittsburgh: Troy Hill Federal Savings and Loan Association, 1701 Lowrie Street (converted from Troy Hill Building and Loan Association of Allegheny City). CANCELATION OF FEDERAL SAVINGS AND LOAN ASSOCIATION CHARTER BETWEEN OCTOBER 16 AND NOVEMBER 15, 1941 PENNSYLVANIA: I. INSTITUTIONS ADMITTED TO MEMBERSHIP IN THE FEDERAL HOME LOAN BANK SYSTEM BETWEEN OCTOBER 16 AND NOVEMBER 15, 1941 DISTRICT NO. 1 Philadelphia: Peirce School Federal Savings and Loan Association, 1214 Locust Street (merger with First Wayne Federal Savings and Loan Association of Wayne, Pennsylvania). III. INSTITUTIONS INSURED BY THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION BETWEEN OCTOBER 16 AND NOVEMBER 15, 1941 N E W HAMPSHIRE: Claremont: Claremont Savings Bank, 46 Tremont Square. DISTRICT NO. 2 DISTRICT NO. 2 N E W JERSEY: Newark: Robert Treat Savings and Loan Association, 530 Clinton Avenue. N E W YORK: Hamburg: Hamburgh Savings and Loan Association, 11 Main Street. N E W JERSEY: Clifton: Center Savings and Loan Association of Clifton, New Jersey, 732 Main Avenue. NewarkRobert Treat Savings and Loan Association, 530 Clinton Avenue. DISTRICT NO. 5 D I S T R I C T NO. 4 OHIO: Cincinnati: The Bremen Street Loan and Building Company, 1633 Vine Street, DISTRICT NO. 7 ILLINOIS: Chicago: Abraham Lincoln Building and Loan Association, 1635 West Fifty-first Street. Table Grove: Table Grove Building and Loan Association. WITHDRAWALS FROM THE FEDERAL HOME LOAN SYSTEM BETWEEN OCTOBER 16 AND NOVEMBER 15, GEORGIA: BANK 1941 Atlanta: Industrial Life and Health Insurance Company, 573 Peachtree Street West (member's request) 100 NORTH CAROLINA: Charlotte: Mechanics Perpetual Building and Loan Association of Charlotte, North Carolina, 116 East Fourth Street. Durham: Mutual Building and Loan Association, 816 Fayetteville Street. D I S T R I C T NO. 5 OHIO: East Galion: The Tri-County Savings and Loan Company, 115 Harding Way. Georgetown: The Safety Building and Loan Company, Duffy Building. D I S T R I C T NO. 9 TEXAS: Cleburne: Cleburne Savings and Loan Association, 115 East Chambers Street. Federal Home Loan Bank Review U. S. GOVERNMENT PRINTING O F F I C E : 1 9 4 1 FEDERAL HOME LOAN BANK DISTRICTS . — — BOUNDARIES • OP FEDERAL HOME LOAN FEDERAL HOME LOAN BANK BANK DISTRICTS CITIES. OFFICERS OF FEDERAL HOME LOAN BANKS BOSTON CHICAGO B. J. ROTHWELL, Chairman; E . H . W E E K S , Vice Chairman; W . H . NEAVES, President; H. N. FAULKNER, WINANT, Treasurer; L. E. DONOVAN, Vice President; Secretary; P . A. C. E . BROUGHTON, Chairman; H. G. ZANDER, JR., Vice Chairman; A. R. FREDERICK GARDNER, HENDRICK, Treasurer; C O N S T A N C E M . W R I G H T , Secretary; U N C A R O & SHERWOOD, NEW MACDONALD, JONES, Chairman; D E S MOINES YORK Chairman; C. B . B O B B I N S , Chairman; E . J. R U S S E L L , Vice Chairman; R. J. R I C H A R D - President; D E N T O N C . L Y O N , Secretary; H . B . D I F F E N D E R F E R , Treasurer; F . G. SON, President-Secretary; W . H . LOHMAN, Vice President-Treasurer; J. M . M A R T I N , Assistant Secretary; A. E . MUELLER, Assistant Treas- STICKEL, J R . , General Counsel. urer; E M M E R T , JAMES, N E E D H A M & L I N D G R E N , Counsel. NUGENT F. F A L L O N , President; R O B E R T V. D. LLOYD, Vice G. C L A R K S O N , Vice PITTSBURGH E. Vice President; H . C . Counsel. Counsel. GEORGE President; J. P . D O M E I E R , LITTLE ROCK T . T R I G G , Chairman; C. S. T I P P E T T S , Vice Chairman; R. H . RICH- ARDS, President; G. R. PARKER, Vice President; H . H . GARBER, Secretary-Treasurer; R. A. CUNNINGHAM, Counsel. W. C . JONES, J R . , Chairman; W . P . GULLEY, Vice Chairman; B . H . WOOTEN, President; H . D . WALLACE, Vice President-Secretary; J. C . . C O N W A Y , Vice President; W . F . T A R V I N , Treasurer; W . H . C L A R K , J R . , Counsel. WINSTON-SALEM TOPEKA H. S. HAWORTH, Chairman; E . G. BALTZ, Vice Chairman; O. K . L A R O Q U E , President-Secretary; G. E . WALSTON. Vice President-Treasurer; Jos. W . H O L T , Assistant Secretary; T . S P R U I L L T H O R N T O N , Counsel. P. F. GOOD, Chairman; R o s s THOMPSON, Vice Chairman; C. A. STERLING, President-Secretary; R. H . BURTON, Vice President-Treasurer; JOHN S. D E A N , J R . , General Counsel. CINCINNATI R. P. DIETZMAN, Chairman; ¥ M . MEGRUE PORTLAND BROCK, Vice Chairman; B E N A. PERHAM, Chairman; B E N H . H A Z E N , Vice Chairman; F . H . W A L T E R D . SHULTZ, President; W . E . J U L I U S , Vice President; D W I G H T JOHNSON, WEBB, Treasurer; M r s . E . M . J E N N E S S , Assistant Secretary; V E R N E J R . , Secretary; A. L. M A D D O X , Treasurer; T A F T , STETTINIUS & HOLLISTER, General Counsel. F R E D T. G R E E N E , President; G. E . OHMART, 2nd Vice President; C . R U S S E L L P A R K E R , Secretary-Treasurer; H A M M O N D , B U S C H M A N N , K R I E G & D E V A U L T , Counsel. IRVING BOGARDUS, Vice PresidentDUSEN. BERY, Counsel. Los INDIANAPOLIS II. B . W E L L S , Chairman; F . S. CANNON, Vice Chairman-Vice President; President-Secretary; D. ANGELES G. D A V I S , Chairman; A. J. E V E R S , Vice Chairman; M . M . H U R F O R D * President; C. E . B E R R Y , Vice President; F . C. N O O N , Secretary-Treasurer; V I V I A N SIMPSON, Assistant Secretary.
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