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Vol. 4
MEhfe.
No. 6
FEDERAL
HOME LOAN BANK
REVIEW
MARCH
1938
ISSUED BY
FEDERAL HOME LOAN BANK BOARD
WASHINGTON D . C .
FEDERAL
CONTENTS FOR MARCH
1938
SPECIAL ARTICLES
LOAN
BANK
Page
National Housing Act Amendments of 1936
196
The effect of home-financing practices on neighborhood stability
199
Designation of chairmen and vice chairmen, and appointments of public interest
directors, of the Federal Home Loan Banks
202
Investments of life insurance companies
REVIEW
204
STATISTICS
Residential construction and home-financing activity
Published monthly by the
FEDERAL HOME LOAN
BANK BOARD
John H. Fahey, Chairman
T. D. Webb, Vice Chairman
William F. Stevenson
F. W. Catlett
W. H. Husband
FEDERAL HOME LOAN
BANK SYSTEM
FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
HOME OWNERS' LOAN
CORPORATION
207
Indexes of small-house building costs
209
Monthly lending activity of savings and loan associations
210
Federal Savings and Loan System
212
Federal Savings and Loan Insurance Corporation
214
Federal Home Loan Bank System
215
Statistical tables
216
Nos. 1, 2: Number and estimated cost of new family dwelling units
. . . .
No. 3: Indexes of small-house building costs
216
218
Nos. 4, 5, 6: Estimated lending activity of all savings and loan associations . 220
No. 7: Monthly lending activity of reporting savings and loan associations . 222
No. 8: Index of wholesale price of building materials
223
No. 9: Institutions insured by the Federal Savings and Loan Insurance Corporation
224
No. 10: Monthly operations of State-chartered insured associations
. . . .
224
No. 11: Monthly operations of Federal savings and loan associations
. . . .
225
Nos. 12, 13: Federal Home Loan Bank System
225
Nos. 14, 15, 16: Home Owners' Loan Corporation
226
REPORTS
Administrative rulings, Board resolutions, and Counsel's opinions
227
Directory of member, Federal, and insured institutions added during JanuaryFebruary
230
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
Federal 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 $1.40; single copies, 15 cents. Subscriptions should be sent to and copies ordered from Superintendent
of Documents, Government Printing Office, Washington, D. C.
A P P R O V E D BY T H E BUREAU OF T H E B U D G E T .
48730—38
1
NATIONAL HOUSING ACT AMENDMENTS OF
1938
•
The National Housing Act Amendments of 1938,
as finally approved by the signature of President
Roosevelt on February 3, 1938, make important
changes in the provisions relating to Titles I, II, and
III of the National Housing Act.
TITLE I
Title I, which was originally operative June 27,
1934 through March 31,1937, is now revived to make
available until July 1, 1939 the same type of credit
insurance as was formerly provided. The object
is to provide insurance for institutions against losses
resulting from financing of alterations, repairs, and
improvements upon urban, suburban, or rural real
property. Loans for the purchase and installation
of equipment and machinery upon real property are
no longer eligible for insurance. There is no cost of
the insurance to the lending institution, and the
regulations permit savings, building and loan associations, cooperative banks, and similar institutions,
which are generally required by law to take mortgage security, to write modernization advances with
a maturity longer than the five years which is the
maximum term permitted to other institutions.
Claims for loss, however, must be made within five
years of the date of the execution of the note. When
mortgage security is taken for a modernization loan,
the total effective rate to the borrower, including
costs of title search and appraisal, must not exceed
9.7166 percent.
Major changes from the original Title I are to
provide a statutory limit of $10,000 for insured loans
made to finance improvements upon existing structures, and to establish a new type of insurance under
Title I for loans of not more than $2,500 for financing
the building of new structures. If the new structure
is intended for use in whole or in part for residential
purposes, conformance to certain minimum standards
of construction is required, and the loan may have a
final maturity of 10 years. The effective interest
rate on loans under Title I up to $2,500 for the building of a new house must not exceed 6.6959 percent.
TITLE II
Originally there was no limitation on the amount
of insurance liability which could be assumed by the
196
Federal Housing Administration under Title II,
except that Presidential approval was required to
insure any amount over 2 billion dollars. No revolving fund was set up. It is now provided that
under Title II the Federal Housing Administration
may not have more than 2 billion dollars worth of
mortgages insured at one time, except that the limit
may be set at 3 billion dollars with the approval
of the President. This means that the Federal Housing Administration now operates as a permanent
institution with a revolving fund and that the total
insurance liability outstanding at any one time may
not exceed the limit established by law.
After July 1, 1939, no mortgages are to be insured
under Title II except those made for new construction. The only exceptions to this provision are that
mortgages may be insured on property which was constructed and completed between January 1,1937 and
July 1,1939. Mortgages may also be insured on property previously covered by a mortgage insured by
the Federal Housing Administration, or property
approved for insurance prior to completion of
construction.
Except on the "90 percent and $5,400" mortgage
loans which are to be made for the encouragement of
lower-cost small homes for the owner, annual insurance premiums in the future on all insured loans are
to be paid at the rate of one-half of 1 percent upon
the unpaid principal obligation of the mortgage
without taking into account prepayments or delinquencies. Provision is made that the premium rate
shall be adjusted on all existing insured mortgages
for premium charges falling due subsequent to the
approval of these amendments. The annual service
charge, which has been permitted in the past at
rates not exceeding one-half of 1 per centum per
annum on decreasing balances, is now eliminated on
loans receiving insurance commitment subsequent to
the effective date of these amendments.
A further important change is in the guaranteed
debentures issued in the event of default of a mortgage insured by the Administrator subsequent to the
effective date of these amendments. The newly
revised Regulations provide that such debentures
shall bear interest at the rate of 2% per centum per
annum. They are exempt from all Federal, State, or
Federal Home Loan Bank Review
local taxation except surtax, estate, inheritance and
gift taxes. However, debentures issued in connection with mortgages insured prior to the effective
date of the amendments may be either 3-percent
taxable debentures or 2%-percent tax exempt debentures at the election of the mortgagee.
Insurance of mortgage loans up to 80 percent of
appraised value (limited to $16,000) continues without major changes from former procedure under
Title I I .
ENCOURAGEMENT OF MULTIFAMILY AND G R O U P
HOUSING
ENCOURAGEMENT OF CONSTRUCTION OF L O W - C O S T
SMALL H O M E S FOR THE O W N E R
The new insurance provisions of Section 203 under
Title I I have been especially directed to the smallhome owner. Mortgages up to 90 percent of appraised value with a maximum of $5,400 will be insured on houses newly constructed on either urban,
suburban, or rural property. The mortgagor in these
instances must be an owner and occupant at the
time of insurance who has paid down at least 10 percent in cash or its equivalent. If written before
July 1, 1939, these mortgages may have a maturity
not to exceed 25 years and the annual insurance
premium is fixed at one-fourth of 1 percent of the
unpaid principal, without taking into account prepayments or delinquencies. The maximum interest
rate which a lending institution may charge on these
mortgages is fixed at 5 percent and no annual service
charge may be added. These new provisions mean
that the home buyer may be required to have only
half as much equity as under the original Title I I .
The annual charges for interest and insurance
premium on loans insured under the Amendments
are reduced to maximums of 5.5 percent and 5.25
percent under Title I I . For a 20-year term, the
average monthly payments required on a 90-percent
loan would be only a small amount above the average
monthly payments required on an 80-percent loan
for the same term. For the maximum 25-year term,
the average monthly payments required on a 90-percent loan would be somewhat less than average
monthly payments on an 80-percent 20-year loan,
in spite of the fact that a much smaller down payment is required.
There is a further provision that on loans for new
construction in an amount not exceeding $8,600,
90-percent insurance can be granted on the first
$6,000 and 80-percent on the value in excess of $6,000.
For example, this means that the maximum insurance protection available will be for a loan of
$8,600. For these mortgages, the maturity is
limited to 20 years. However, such a mortgage
would carry an annual insurance premium at the
rate of one-half of 1 percent.
March 1938
Under the original terms of the Act, the limit of
insurance for mortgages on apartments designed for
other than low-income families was $16,000 and the
restriction was also added that they must house not
more than four families. Insurance was provided
for large-scale housing projects only when designed
for people of low income and regulated as to rents,
charges, capital structure, rate of return, or methods
of operation. The maximum insurance for any lowcost housing project was $10,000,000.
Section 207 of the amendments attempts to provide
for a considerable amount of apartment and subdivision construction. Projects involving a principal
obligation of not more than 5 million dollars are
eligible for insurance up to 80 percent of their value.
Such projects must still be regulated by the Administrator to assure a limited dividend operation with
reasonable rentals to tenants. The restriction that
such housing be designed for low-income families is
removed, but the amount of the loan for the project
is limited to $1,350 per room. Five percent is the
maximum interest which may be charged upon such
an insured mortgage. The Administrator may consent to release a part or parts of the mortgaged property from the lien. There is also an additional
option to the mortgagees that debentures may be
issued for 98 percent of the insurance upon the
assignment of the mortgage to the Administrator
after default. This means that the mortgagee is not
required to foreclose the mortgage and to convey
the property to the Administrator in order to be
entitled to receive the benefits of the insurance
protection.
The completely new Section 210 is concerned with
the financing of other types of group projects.
Limited dividend operation with rental control is
not required. Mortgages with a principal amount
in excess of $16,000 but not in excess of $200,000, or
80 percent of the value of the property, are now
made eligible for insurance on properties upon which
are constructed one or more multifamily dwellings,
or a group of not less than 10 single-family dwellings.
Partial releases may be effected with the consent of
the Administrator. The insurance protection ex197
tends to construction loans and is designed primarily for the financing of buildings in the singlefamily and smaller apartment field. The amount of
the loan for such projects may not exceed $1,150 per
room, maximum maturity of the mortgage is 21
years, and maximum interest permissible is 5 percent on the unpaid principal of the mortgage. The
mortgagee under Section 210 has no option to claim
the insurance by assignment of the mortgage, b u t
must foreclose and convey the property to the
Administrator in order to receive debentures.
TITLE III:
NATIONAL MORTGAGE
ASSOCIATIONS
Under Title I I I of the old Act, no national mortgage associations were created. The National Housing Act Amendments of 1938 liberalize the provisions
of Title I I I to encourage their development. Formerly, national mortgage associations were to be permitted only to purchase and sell first mortgages.
Under the new Act, they may also make real estate
loans which are insured under Title I I , provided
that no national mortgage association, controlled or
operated by the United States or any agency of the
United States, is permitted to initiate a real estate
loan on the ordinary 1- to 4-family dwelling accepted
for insurance under Section 203 of Title I I .
Non-governmental mortgage associations are given
broad powers to make, purchase, service or sell any
mortgages which are insured under Title I I , and they
may also purchase, service, or sell uninsured first
mortgages provided t h a t the uninsured mortgages do
not exceed 60 percent of the appraised value of the
property.
Two fundamental changes have also been made in
the organization of national mortgage associations.
Although each national mortgage association must
still have a minimum capital stock of 2 million
dollars, it m a y transact business as soon as 25 percent has been paid in on capital stock, either in cash
or in governmental securities, or in first mortgages.
This means that a group forming a national mortgage
association need only p u t up $500,000 to begin to
buy and make mortgage loans. I t cannot, however,
issue debentures to the public until all the capital
stock is paid in.
When the capital stock investment of 2 million
dollars has been reached, however, an association
may now sell to the public 40 million dollars in
debentures, as compared with the old maximum of
24 million dollars since the ratio of debentures to
capital stock was raised from 12 to 1 to 20 to 1.
These debentures are now made exempt from
198
Federal as well as State, county, municipal or local
authority taxation "now or hereafter imposed",
except surtaxes, estate, inheritance, and gift taxes.
Complete tax exemption extends to the association,
its franchise, capital, reserves, surplus, mortgage
loans, income and stock, b u t the real property held
by it is subject to taxation to the same extent as
other real property is taxed.
The concluding section of the new legislation
amends the statutes governing national banks and
permits national banks to invest in obligations or
securities of national mortgage associations, although
it does not permit them to own stock in such national
mortgage associations.
The first national mortgage association was established by the Reconstruction Finance Corporation
on February 10. There was initial paid-in Government capital of 10 million dollars and a paid-in
surplus of 1 million dollars. This means that the
National Mortgage Association of Washington,
D . C , is able to issue debentures up to $220,000,000
or 20 times its paid-in capital and surplus. The
Association will use the headquarters of the Reconstruction Finance Corporation and will function
through the organization of that agency, operating
on a national scale. According to the announcement by Chairman Jesse H . Jones of the Reconstruction Finance Corporation, the Association is primarily intended to provide money for private enterprise
which plans large-scale housing projects.
I t was announced that an additional 40 million
dollars was being held in reserve either for the capitalization of other national mortgage associations or for
the purpose of increasing the capital stock of the N a tional Mortgage Association of Washington, D . C.
ACTION BY THE F E D E R A L H O M E L O A N
BANK
BOARD
The Federal Home Loan Bank Board has adopted
a resolution, effective immediately, permitting Federal savings and loan associations operating under a
charter in the form of Exhibit K to make loans
insured by the Federal Housing Administrator, in
order to take advantage of the recent amendments
to the National Housing Act. 1 Approval of the loan
plans provided by the National Housing Act, as
amended, as other loan plans means that Federal
i The text of the Board resolutions relating to the participation of Federal
savings and loan associations under the National Housing Act, as amended, will
be found on page 227. The procedure to be followed in making application to
the Board for such lending privilege is explained in detail on page 228.
{Continued on p. 215)
Federal Home Loan Bank Review
THE EFFECT OF HOME-FINANCING PRACTICES
ON NEIGHBORHOOD STABILITY
•
A HOUSE must be designed to fit harmoniously
with its neighbors if it is to provide the best
security for an investment. One incongruous element on a street, such as a Spanish villa among
Georgian mansions, will be enough to spoil its character. The effect of that loss of character may not be
apparent when the properties are new but it will become increasingly so as they grow older. Therefore,
the lending institution making long-term loans has a
vital interest in the harmonious design of the neighborhoods in which it lends. It will be to its own best
interests to urge the use of competent architectural
services, such as are provided through the Federal
Home Building Service Plan, whenever new construction is planned.
Savings and loan mortgage lending is, however,
largely on properties which have already been built
and the character of their neighborhood fairly well
determined. In such cases, the lending institution's
only protection is to urge that no blighting influences
be allowed entrance.
If the financing is on properties in a more open unbuilt area or a new subdivision, the street plan has
probably been rigidly determined by the city plan or
has been arbitrarily determined by the subdivider.
In this case, the lending institution can control its
security through harmonious design only in relation
to the number of houses it finances in those areas.
Thus, a single well planned house may be surrounded
later by unfortunate monstrosities over which the
lender has no control.
Therefore, the savings and loan mortgage lender is
best safeguarded in this one respect by financing the
construction of several houses together, as is being
TYPICAL RESIDENTIAL CUL-DE-SAC IN GREENDALE, WISCONSIN
8UILT BY
FARM SECURITY ADMINISTRATION
March 1938
199
done by many associations in different parts of the
country. If an association has the opportunity to
finance a group of houses it can either, through insistence upon adequate design, create an area which
stands a good chance of surviving much of the deterioration which comes with age, or it can permit haphazard construction with any kind of layout—probably the inadequate gridiron or checkerboard plan
which has done so much to blight our cities. With
the former it has not only better security for its investments but the best type of advertising possible—
a monument to the association's interest in the
beauty and economic stability of its community.
The plan of South Birch Street on page 199 is an
example of what could be done by those who have the
opportunity to finance the construction of a group of
houses. This plan was evolved by the Farm Security (formerly Resettlement) Administration as a part
d
SECOND
FLOOR
PLAN
d
FIRST
FLOOR
PLAN
TYPICAL SINGLE HOUSES
CREENOALE- • • W I 5 C D N 5 I N
200
Federal Home Loan Bank Review
of the development of the town of Greendale, Wisconsin. It provides within its limits many of the
amenities which make for a stable and harmonious
environment.
The first point of interest about South Birch
Street is that it discourages traffic. It is a dead-end
street and narrow—yet sufficient to meet the needs
of the people living along its border. Also, it has
been curved to follow the topography of the land as
well as to provide more interesting vistas for the
houses. In contrast, North Road, a part of which
is also shown on the plan, is a wide traffic road not
used for house frontage.
South Birch Street is oriented north and south,
providing houses with south, east, and west exposures
for principal rooms, and a north exposure, with
few or no windows, for stairs and services—an important provision in the cold Wisconsin climate.
Proper orientation is a factor often omitted from
conventional designs dependent on a rigid road
pattern, but it is one which measurably affects the
comfort of the occupants. However, there were
other problems connected with South Birch Street
which related specifically to the uses to which the
houses were to be put. First, the houses were
built for rent and not for sale. This permitted a
different arrangement of the plans than had the
houses been for owner occupancy. Second, the
designers had to provide on each lot area a house, a
garden, a garage, and a garage approach properly
related to the house entrance, and with sufficient
parking space to reduce to a minimum the conversion
of the street into a parking lot. These houses were
built for families of only moderate incomes and,
consequently, economies in design were sought which
would not sacrifice the desired amenities.
The placement of the house on the lot was the
result of a careful analysis of the premises just
stated: the front wall of the utility wing was placed
exactly on the street line and the north wall of the
house on the north lot line. The most unusual
feature of this layout is that the garage is attached
to the house next door which helps to shield the
back yards from the prying eyes of neighbors. The
driveway serves for coal delivery to the neighboring
house. Instead, therefore, of the typical subdivider's front yard having no privacy, two narrow
useless side yards, and moderately generous rear
yard, the Greendale lot has its open portions concentrated in two usable areas: a spacious rear yard
for lawn and garden, and a similar side yard serving
March 1938
as an approach to the house and garage, supplemented
by a diminutive service yard providing access to the
utility room.
This arrangement was made possible on a lot of
limited area by making that lot wider and shallower
than the conventional subdivided small lot. Instead
of being 25' x 125' as are many lots in urban communities, these lots are 50' x 100' which permits much
more acceptable garden space, light, air, and privacy.
The internal plan of a typical 3-bedroom house on
South Birch Street is shown in the illustration on
page 200. The features of this plan are also a deviation from the most common practice. Because the
outdoor living space has been placed away from the
street and towards the south of the lot, the interior
arrangement has also been faced in this way to give
maximum privacy. The living room has been
placed on the garden side rather than on the street;
while the kitchen, utility room, and bath have been
placed on the street side, both to decrease the cost of
utilities connections and to increase the privacy of
living portions. Also, typical of much of presentday small-house building in certain areas, a section
of the living room has been provided for dining instead of a full-sized dining room. The small residual
space at the utility room door becomes a service
yard sheltered from the street by a picket fence and
vines. In this service yard is placed an underground
garbage receiver, and through it will pass the collector
of ashes and refuse kept in cans in the utility room.
All these factors merely serve to illustrate the
effect of controlled design on the simplest elements in
the environment. If this design serves to provide
more comfortable and functionally useful living
quarters, it will be an important factor in increasing
the demand for the properties and will, therefore,
have an important bearing on the mortgage lender's
security.
The layout of these houses in relation to the street
seems at first glance to be a radical departure from
accepted practice; one which has not been proved
sound by experience. But in many respects it resembles the layout of houses in colonial towns. In
Charleston, South Carolina, for example, it is a
still followed tradition to place the house on the
street line and to enter it through a side porch, the
principal garden being located in the rear; while in
New England towns, the parks and commons are as
characteristic as the architecture of the buildings
themselves.
(Continued on p. 203)
201
Designation of Chairmen and Vice Chairmen, and Appointments of Public Interest Directors, of the Federal Home
Loan Banks
•
THE Federal Home Loan Bank Board recently
announced the designation of directors of the
following Federal Home Loan Banks as chairmen
and vice chairmen of the respective boards of
directors. In most of these Federal Home Loan
Bank Districts, the chairman and vice chairman
who served during 1937 have been appointed to
continue in office during 1938. The chairman and
vice chairman are named for terms of one year,
beginning January 1, 1938, or until a successor is
designated and qualified.
Announcement was also made by the Federal
Home Loan Bank Board of the appointment of
Public Interest directors of the following Federal
Home Loan Banks. In each of these Federal Home
Loan Bank Districts, the Federal Home Loan Bank
Board reappointed a Public Interest director who
had served in this capacity during 1937, except for
appointments made to fill vacancies under unexpired
terms. The appointments for Public Interest director are for terms of four years, beginning January 1,
1938, through December 31, 1941.
DISTRICT NO. 1: FEDERAL HOME LOAN BANK
OF BOSTON
Chairman: Bernard J. Rothwell, Boston, Massachusetts.
Vice Chairman: Edward H. Weeks, Providence, Rhode
Island.
Public Interest Director: Bernard J. Rothwell, President, Bay
State Milling Company; Lawrenceburg Roller Mills Company. Boston, Massachusetts.
DISTRICT NO. 2: FEDERAL HOME LOAN BANK
OF NEW YORK
Chairman: George MacDonald, New York, New York.
Vice Chairman: Francis V. D. Lloyd, Hackensack, New
Jersey.
Public Interest Director: George MacDonald, Director: Consolidated Oil Corporation; Cities Service Company; Manufacturers' Trust Company; Petroleum Corporation of
America. New York, New York.
Edwin S. Webster, Jr., Senior Partner, Kidder, Peabody
& Co.; Director, Stone Webster, Inc. New York, New
York—appointed to serve for the unexpired portion of 4-year
term ending December 31, 1939.
202
DISTRICT
NO. 3: FEDERAL HOME LOAN BANK
OF PITTSBURGH
Chairman: Ernest T. Trigg, Philadelphia, Pennsylvania.
Vice Chairman: Charles S. Tippetts, Pittsburgh, Pennsylvania.
Public Interest Director: Ernest T. Trigg, President, National
Paint, Varnish and Lacquer Association. Philadelphia,
Pennsylvania.
DISTRICT NO. 5: FEDERAL HOME
OF CINCINNATI
LOAN BANK
Chairman: Theo. H. Tangeman, Columbus, Ohio.
Vice Chairman: W. M. Brock, Dayton, Ohio.
Public Interest Director: Harry S. Kissell, President: Kissell
Real Estate Company; Kissell Improvement Company;
Kissell Insurance Agency. Springfield, Ohio.
DISTRICT NO. 6: FEDERAL HOME LOAN
OF INDIANAPOLIS
BANK
Chairman: F. S. Cannon, Indianapolis, Indiana.
Vice Chairman: S. Rudolph Light, M. D., Kalamazoo, Michigan.
Public Interest Director: S. Rudolph Light, M. D., Director:
American National Bank; Chamber of Commerce; Civic
League. Kalamazoo, Michigan.
CharJes T. Fisher, Jr., President, National Bank of Detroit. Detroit, Michigan—appointed to serve for the unexpired portion of 4-year term ending December 31, 1939.
DISTRICT NO. 8: FEDERAL HOME LOAN BANK OF
DES MOINES
Chairman: Charles B. Robbins, Cedar Rapids, Iowa.
Vice Chairman: E. J. Russell, St. Louis, Missouri.
Public Interest Director: E. J. Russell, Senior Partner, Mauran
Russell & Crowell, Architects; President, Lauran Realty
Company. St. Louis, Missouri.
DISTRICT NO. 9: FEDERAL HOME LOAN BANK OF
LITTLE ROCK
Chairman: J. Gilbert Leigh, Little Rock, Arkansas.
Vice Chairman: Will C. Jones, Jr., Dallas, Texas.
Public Interest Director: Will C. Jones, Jr., Treasurer, The
Murray Company. Dallas, Texas.
Federal Home Loan Bank Eeview
DISTRICT NO. 10: FEDERAL HOME LOAN BANK OF
TOPEKA
Chairman: W. R. McWilliams, Oklahoma City, Oklahoma.
Vice Chairman: George E. McKinnis, Shawnee, Oklahoma.
Public Interest Director: C. B. Merriam, Chairman of the
Board, Central Trust Company; Vice President, Central
National Bank; Director, Reconstruction Finance Corporation (Washington). Topeka, Kansas.
DISTRICT NO. 11: FEDERAL HOME LOAN BANK OF
PORTLAND
Chairman: Frank S. McWilliams, Spokane, Washington.
Vice Chairman: Ben Hamlin Hazen, Portland, Oregon.
Public Interest Director: L. H. Hoffman, President and Director, Hoffman Construction Company. Portland, Oregon.
DISTRICT NO. 12: FEDERAL HOME LOAN BANK OF
LOS ANGELES
Chairman: C. H. Wade, Los Angeles, California.
Vice Chairman: David G. Davis, San Francisco, California.
Public Interest Director: David G. Davis, President and General Manager, Raphael Weill & Company. San Francisco,
California.
Albert J. Evers, Fellow, American Institute of Architects.
San Francisco, California—appointed to serve for the unexpired portion of 4-year term ending December 31, 1939.
APPOINTMENT OF DIRECTORS OF FEDERAL HOME LOAN BANK OF PORTLAND
In accordance with the provisions of subsection (h)
of Section 7 of the Federal Home Loan Bank Act,
the Federal Home Loan Bank Board has reappointed
the following directors of the Federal Home Loan
Bank of Portland. The term of office is for the
calendar year, from January 1, 1938 through December 31, 1938.
J. H. Andrews, Federal Building & Loan Association, Ogden,
Utah.
P. C. Bulen, Mountain States Building & Loan Association,
Great Falls, Montana.
Ralph H. Cake, Equitable Savings & Loan Association, Portland, Oregon.
Sam H. Dehnert, First Federal Savings & Loan Association
of Coeur d'Alene, Coeur d'Alene, Idaho.
Ben Hamlin Hazen, Benjamin Franklin Federal Savings &
Loan Association of Portland, Portland, Oregon.
J. T. S. Lyle, Pacific First Federal Savings & Loan Association of Tacoma, Tacoma, Washington.
Frank S. McWilliams, Fidelity Savings & Loan Association,
Spokane, Washington.
Terry Ross, Wenatchee Federal Savings & Loan Association,
Wenatchee, Washington.
(Continued from p. 201)
As has been mentioned, South Birch Street was
designed as a part of a whole community. This
community of 572 dwelling units, of which approximately one-half are single-family dwellings, was
built on undeveloped land. Consequently, the
planners of Greendale were presented with the unusual opportunity of building several hundred small
houses under conditions permitting control of surroundings and a complete study of the relationship
of the house to the site. The choice of the town
site within the tract purchased, the assignment of
areas to residential uses, the creation of large protecting and useful parks, the development of the
street pattern, and the disposition of utilities were
all considered as parts of a whole in which the individual dwelling unit was the dominating element.
This is an ideal way of laying out a community
and not one with which the mortgage lender will
have much contact. But he can concern himself
with the development of his existing community.
Quite obviously, the street which he has done so
much to develop into a desirable residential neighborhood will be destroyed as such if a factory is
erected next to it. Only through proper zoning
ordinances and a farsighted city plan can this be
prevented.
A first step in the development of sound and stable
communities is the proper design and construction
of the individual house. Today, trained architects
are entering the small-house field; a trend which is
well exemplified through the development of the
Federal Home Building Service Plan. Architects
operating in connection with the Plan are offering
attractive and meritorious plans and are providing
technical supervision of construction.
The second step, as we have said, is the development of sound and attractive neighborhoods. First,
probably, in the form of single streets and finally
then in whole neighborhood areas. This will lead
under proper direction to the environmental stability
of the community. It is such stability which will
have to be achieved before the home-financing institution can be assured of maximum security for its
mortgage portfolio.
203
March 1938
48730—38
Neighborhood Stability
2
Investments of Life Insurance Companies1
•
NEW nonfarm mortgage investments of life insurance companies have been increasing rapidly
since 1933. In that year the volume of such investments was only 35 million dollars; the volume
in 1937 had risen 1314 percent to over 500 million
dollars. This increase is shown in Chart A.
The most specific effect of the return of life insurance companies into the mortgage investment
field is seen in the upturn of their nonfarm mortgage
loan portfolio for the first time since 1931. The 1937
volume of loans made was sufficiently in excess of
repayments to produce an increase of 1.2 percent in
total nonfarm mortgage loans outstanding. Total
mortgage holdings of all types, however, due to the
continued downward trend in the amount of farm
mortgages held, have been declining for six years,
and are now about 5 billion dollars—a level approximately one-third below the 1931 peak. The
decline from 1936 to 1937 was only 0.4 percent.
These figures indicate that life insurance companies are investing more heavily each year in nonfarm mortgages, but they are not doing so at a rate
comparable to their general growth. Further, it is
quite evident that they have virtually left the farm
mortgage field. New life insurance written in 1937
totaled approximately 15 billion dollars which was
the largest annual amount of new business since
1931 and represented an increase of 5 percent over
the previous year's total. It is significant of the
growth of these institutions that the life insurance
in force at the end of 1937 amounted to 110 billion
dollars, was the highest ever recorded, and represented the policy-holdings of about 64 million people.
At its lowest point in recent years the insurance in
force amounted to 98 billions in 1933.
The combined assets of life insurance companies,
which have grown steadily for a long time, amounted
to 26 billion dollars at the close of 1937, having increased 6 percent during the year. As the nonfarm
mortgage holdings of these institutions increased in
lesser degree than assets, there was a decrease in the
ratio of this type of investment to total assets.
In 1928 and 1929 their mortgage investments constituted about 42 percent of total assets. Had this
42-percent ratio continued through the intervening
1
The estimates in this article were prepared by the Division of Research and
Statistics of the Federal Home Loan Bank Board and are based on statistics for
substantial groups of the larger life insurance companies with assets aggregating
between 90 percent and 95 percent of the assets of all life insurance companies in
the United States. The sources of the data are the Association of Life Insurance
Presidents and the Wall Street Journal.
204
years, these investments at the end of 1937 would
have amounted to 11 billion dollars instead of 5
billion, or 16 percent of assets. Further, the ratio
of United States Government bonds increased during
the same period from about 3 percent to 18 percent.
These Government bonds took up a good part of
the slack resulting from the decline in mortgage investments. The distribution of assets since 1925 is
shown in Chart B.
Four billion dollars of these bonds could be shifted
to real estate mortgage investments without completely converting the balance and diversification of
investments to the 1928-1929 proportions. If this
were done, mortgages held would amount to about
35 percent of assets and United States bonds to
3 percent.
Present indications are that the trend is definitely
towards increased mortgage investment. Even
though life insurance companies invested over 1
billion dollars in United States Government bonds
in 1937, which was 34 percent of total new investments, they had invested 41 percent in these bonds
in 1936 and 59 percent in 1934. Thus, the trend
has been to invest each year a smaller proportion of
total funds in Government bonds.
In contrast, the proportion of the total invested
in nonfarm mortgages in these three years has
increased: 3 percent, 10 percent, and 15 percent.
Life insurance companies hold 2 billion dollars
of the bonds of governments other than the Federal.
The largest part of this, 73 percent, is in State,
county, and municipal bonds. They also hold
nearly 8 billion dollars of other bonds and stocks.
In view of the declining trend of defaults in
principal and interest payments on mortgages and
improving interest collections as experienced recently by life insurance companies, it would seem
that the future trend will be in the direction of a
reemphasis of real estate mortgage investments: a
trend which is partially indicated in the upswing of
nonfarm mortgage portfolios during the past year.
However, there are factors which may retard the
return of life insurance companies into the mortgage
investment field. Competition for best class of loans
has developed from many different sources and has
resulted in a general liberalization of lending terms.
Also, mortgage moratoria in several States have had
an adverse effect upon mortgages as investments.
On the other hand, the widened scope of mortgage
Federal Home Loan Bank Review
to total assets has not changed much during the last
10 years, but the ratio of total real estate has increased from 2 percent to 8 percent. It is now
apparently passing the peak, however, since the
ratio declined slightly in 1937 over 1936 for the first
time since the rise started. This decline is in line
with the general but hesitant improvement of the
real estate market during 1937.
insurance by the Federal Housing Administration
may have the opposite effect.
The book value of real estate held by life insurance companies increased slightly during 1937. At
the end of the year, it amounted to about 2 billion
dollars, and was 8 percent of assets. Branch and
home office properties were included in this amount,
being valued at 248 million dollars, or about 1 percent of assets. The ratio of these office properties
Table 7.—Estimates of the total assets and amount of mortgage loans and other investments held by
all United States life insurance companies for selected years
[Source: Federal Home Loan Bank Board. Compiled from statistics furnished by the Association of Life Insurance Presidents,
based upon statistics from approximately 50 companies, the assets of which aggregate over 90 percent of the total assets
of all companies]
[Amounts are shown in thousands of dollars]
All mortgages
Combined assets
Year
Percent
change
Amount
1906 __ $2, 924, 254
4, 164, 492
1911
1921 . . . 7, 936, 497
15, 961, 094
1928
17, 482, 309
1929
1930
18, 879, 611
1931
20, 159, 940
1932
20,754,112
1933
20, 895, 726
1934
21, 843, 794
1935
23, 216, 496
1936
24, 874, 316
2
1937
26, 350, 000
+ 9.5
4-8.0
+ 6.8
+ 2.9
+ 0.7
+ 4.5
+ 6.3
+ 7.1
+ 5.9
Amount
Percent
Perof
cent
total change
assets
$834, 143
1, 345, 756
2, 734, 123
6, 791, 765
7, 343, 794
7, 652, 662
7, 738, 796
7, 415, 859
6, 776, 484
5, 973, 185
5, 375, 780
5, 111, 174
5, 091, 874
28. 5
32. 3
34. 5
42. 6
42.0 + 8. I
40.5 + 4.2
38.4 + 1.1
35.7 - 4 . 2
32.4 - 8 . 6
27.3 - 1 1 . 9
23.2 - 1 0 . 0
20.5 - 4 . 9
19.3 - 0 . 4
Cash
Year
Amount
1906
1911
1921
1928
1929
1930
1931
1932
1933
1934
1935
1936
1937
1
2
$66, 117
66, 798
93, 889
122, 741
128, 145
137, 632
163, 094
317, 538
451, 975
605, 947
827, 436
853, 687
679, 040
Percent
of
total
assets
2. 3
1.6
1.2
0.8
0.7
0.7
0.8
1.5
2.2
2.8
3.6
3.4
2.6
Nonfarm mortgages
Amount
Percent
Perof
cent
total change
assets
Amount
$561, 018
844, 601
1, 325, 792
4, 662, 076
5, 242, 420
5, 594, 406
5, 735, 100
5, 559, 612
5, 147, 244
4, 681, 999
4, 304, 106
4, 169, 682
4, 220, 216
19. 2
20.3
16. 7
29. 2
30.0 + 12.4
29.6 + 6.7
28.4 + 2.5
26.8 - 3 . 1
24.6 - 7 . 4
21.4 - 9 . 0
18.5 - 8 . 1
16.8 - 3 . 1
16.0 + 1.2
$159, 050
162, 374
156, 270
327, 522
376, 044
448, 580
568, 914
822, 070
1, 196, 489
1,614,256
1,899,806
2, 053, 126
2, 137, 249
U. S. Government bonds
Percent
change
+ 4.4
+ 7.4
+ 18.5
+ 94.7
+ 42.3
+ 34. 1
+ 36.6
+ 3.2
-20.5
Amount
$2, 953
999
848, 094
425, 842
344,401
331, 148
388, 079
459, 704
873, 859
1, 887, 959
2, 955, 924
4,011,730
4, 798, 335
Percent
of
total
assets
Real estate owned *
Percent
change
0. 1
0.0
10.7
2.7
2.0 - 1 9 . 1
1.8
-3.8
1.9
+ 17.2
2.2 + 18.5
4.2 + 90.1
8.6 + 116.0
12.7 + 56.6
16. 1 + 35.7
18.2 + 19.6
Other government bonds
Amount
Percent
of
total
assets
$194, 170
281,311
651, 666
854, 397
1, 034, 603
1, 117,295
1, 275, 318
1, 323, 490
1, 373, 894
1, 597, 655
1, 794, 635
1, 942, 684
2, 104, 838
6. 6
6.8
8.2
5.4
5.9
5.9
6.3
6.4
6.6
7.3
7.7
7.8
,8.0
Percent
change
+ 21. 1
+ 8.0
+ 14. 1
+ 3.8
+ 3.8
+ 16.3
+ 12.3
+ 8.2
+ 8.3
Percent
Perof
cent
total change
assets
5. 4
3. 9
2. 0
2. 1
2.2
2.4
2.8
4.0
5.7
7.4
8.2
8.3
8. 1
Percent
of all
mortgages
1
+ 14.8
+ 19.3
+ 26.8
+ 44.5
+ 45.5
+ 34.9
+ 17. 7
+ 8.1
+ 4.1
1
19. 1
12. 1
5. 7
4. 8
5. 1
5.9
7.4
11. 1
17.7
27.0
35.3
40.2
42.0
All other stocks and bonds
Amount
$1, 264, 213
1, 645, 641
2, 166, 187
4, 757, 044
5, 132, 107
5, 639, 717
5, 903, 637
5, 829, 207
5, 751, 131
5, 976, 680
6, 336, 246
6, 972, 520
7, 756, 123
PerPercent
cent
of
total change
assets
43. 2
39.5
27.3
29.8
29.4
29.9
29.3
28. 1
27.5
27.4
27.3
28.0
29.4
+ 7.9
+ 9.9
+4.7
-1.3
-1.3
+ 3.9
+ 6.0
+ 10.0
+ 11.2
Includes branch and home office properties amounting to approximately 1 percent of total assets.
Estimated by the Association of Life Insurance Presidents.
March 1938
205
Table 2.—Estimated investments of life insurance companies in the United States
[Source: The Association of Life Insurance Presidents and the Wall Street Journal]
[Amounts are shown in thousands of dollars]
Estimated investments as of
Dec. 31, 1937
Estimated new investments
Type of investment
Amount
Amount
Percent
of total
1936
1937
Nonfarm mortgages
Farm mortgages
Total mortgages
U. S. Government bonds
Other government bonds
Stocks^and other bonds
Total investments
_
Percent of total
1934
1934
1936
1937
$4, 220, 216
871, 658
21.4
4.4
$504, 929
72, 255
$377, 650
64, 664
$55, 217
32, 574
15. 1
2.2
9.9
1.7
2 6
1 6
5, 091, 874
4, 798, 335
2, 104, 838
7, 756, 123
25.8
24.3
10.7
39.2
577, 184
1, 147, 900
271, 056
1, 341, 331
442, 314
1, 564, 730
303, 250
1, 499, 683
87, 791
1, 222, 952
369, 357
396, 844
17.3
34.4
8. 1
40.2
11.6
41. 1
7.9
39.4
4.2
58.9
17.8
19. 1
19, 751, 170
100.0
3, 337, 471
3, 809, 977
2, 076, 944
100.0
100.0
100.0
ESTIMATED ASSETS AND NEW MORTGAGE LOANS MADE EACH YEAR BY
A L L LIFE INSURANCE COMPANIES IN THE UNITED STATES
(Based on Reports of Leading Life Insurance Companies Having Approximately 90% of Total Assets)
NEW MORTGAGE LOANS MADE
DISTRIBUTION OF ASSETS
100
500
450
K
400
<
1
-LEGENDNON-FARM. ...CZ3
FARM
m
r
-J 350
O
a
300
250
Z 200
O
150
2 100
50
5
'26 '27 '28 '29 '30 '31 '32 '33 *34 '35 '36 '37
206
tunEE£
'33
'34
'35
'36
'37
Federal Home Loan Bank Review
RESIDENTIAL CONSTRUCTION and HOME-FINANCING ACTIVITY
December and January will cover much of the
building during the coining year.
It is interesting to compare this possible lag with
the normal lag between the date of permit issuance
and actual building. The Bureau of Labor Statistics of the Department of Labor made a study
covering the year 1931 which shows that nearly all
of the building permits issued result in the start
of actual construction within a month, that 90 percent are completed within three months, and that 3
percent of permits never materialize.
The increase between December and January in
the number of permits issued for the country as a
whole was entirely in 3- or more-family dwelling
units. One-family and 2-family units declined
between these two months. The multifamily units
•
NEW YORK CITY continues to distort the
residential building picture. Last month we
stated that a new building code went into effect in
that city on January 1, and that a large number of
permits were filed prior to that date to come under
the old code. The conditions which held in December were continued and amplified in January
as the effective date of the new code (which affects
only multifamily building) was moved forward to
January 27.
In December 1937 and January 1938, 32,514
building permits were filed in New York City alone,
as compared with 28,626 units in that city for the
first 11 months of 1937. Because the building
permits are effective in New York for one year, it
is probable that a large number of those filed in
RESIDENTIAL
BUILDING
ACTIVITY
AND
INFLUENCING
SELECTED
FACTORS
1926-100
600
60 0
500
500
400
TL
300
V
400
T "7^
300
^FORECLOSURES'
200
.••••*»•••,••••••,
100
90
80
70
60
50
40
S W1
*
200
RENTALS1
1
j HOUSING
— £-A
1
" 'Vr-—i—.
j-
...i*.
.•
——«...
•••"
m
••«
rr^L^:I „.••••*•..)./
..*
30
BUILDING
erf
[
1
Wlifc.
' ...J=^
—1
"•••
•
w
f
I—U-
«U«rcr-
J
J
*.-
1 j
MANUFACTURING PAYROLLS
-u^**^—
p"
b-3 _
, ,
j %« - |
.....J•••%,.•/^ f
\
,.j
MATERIAL PRICES*
t
'§8
^ri—
80
70
60
SO
40
*
—/"W V — \ -
30
20
20
+RE SIOEN rIAL C 7NSTR< ICTION 9
10
9
8
7
6
5
4
\_ /•V—/-
J
10
9
8
7
6
5
l l - i f—
4
3
2
M i l l
>
t
M 111
M i l l
1
>
(
1929
i M 11 11111
J
1930
i>
11111
i
1931
Mill
11111
i>
)
1932
1 M 1 1
Mill
)
I
J
1933
i i it i
>
1
II 1 1 1
Mill
i
->
1
1934
M II 1
J
1935
inn
1 M II
)
1
J
1936
Mill
)
(
M M i
i
1937
( M M
>
i
I
M 1 M1
0
1938
Source;- I. Federal Home Loan Bank Board (County Reports)
2. U. S. Dept. of Labor (Converted to 1926 Base)
3. Federal Home Loan Bank Board (U. S. Dept. of. Labor Records)
March 1938
207
authorized rose from 7,503 to 21,610, while 1-family
units dropped from 6,444 to 6,255 and 2-family
units from 1,386 to 1,110. Dwellings with business
properties attached, constituting a negligible proportion of the total, rose from 34 to 42 units. All
this building was by private enterprise as no public
units were authorized in either December or January.
declines between these two months, this is a favorable showing. However, as Table 2 shows, in seven
of the Bank Districts less building took place in
January 1938 than in January 1937.
December-January fluctuations of factors affecting
residential building and mortgage financing remain
FLUCTUATIONS IN RESIDENTIAL RENTALS
Sourc*-© Notmnol Industrial Conf.r.ne. Beard (Convtrttd to 1926 best)
<f) Umttd StolM O.partmtnl of Labor (Coiwtrl.d to 19
[1926=100]
0sc« 100)
Residential constructioni
Foreclosures (metro, cities)
Rental market (N. I. O. B.)~-.
Rentals (Labor Department) __
Building material prices
__.
Manufacturing e m p l o y m e n t Manufacturing pay rolls
Average wage per employee—
Jan.
1938
Dec.
1937
Percent
change
Jan.
1937
86.2
170.0
87.0
42.6
182.0
87.5
69.0
92.5
87.5
78.0
89.1
+102.3
-6.6
-0.6
29.8 +189. 3
221.0
-23.1
81.1
+7.3
2 65.1
91.3
+0.5
95.3
-14.6
87.4
-21.5
91.7
-8.1
91.8
81.4
68.6
84.3
-0.8
-7.0
-12.1
-5.4
Percent
change
>®
?»
(f)ls
so
i Corrected for normal seasonal variations.
* As of Dec. 31, 1936.
The index of residential building, which is adjusted
for seasonal fluctuations (having the effect of amplifying the unusual January conditions) rose to
86.2 as compared with a 1926 level of 100. That is
slightly higher than the average month of 1927.
Excluding the New York District from the picture, the volume of building, as measured by building permits, increased in seven Districts between
December and January. In view of usual seasonal
t%
comparatively stationary with the exception of
manufacturing employment and pay rolls. Employment dropped from 87.5 to 81.4 percent of the 1926
base of 100, and pay rolls dropped from 78.0 to 68.6
percent of the same base. Pay rolls are 21.5 percent
below the January 1937 level.
ESTIMATED NUMBER AND COST OF FAMILY DWELLING UNITS PROVIDED
IN ALL CITIES OF 10.000 OR MORE POPULATION
(Source: Federal Home Loan Bank Board. Compiled from residential building permits reported to U. S. Dept. of Labor)
NUMBER OF UNITS PROVIDED
30
28
\
\
24
22 \
20 \
18 \
26
30
f 1938
100
28
J
90
26
24
80
22
70
20
18
zaxz
16
60
16
\n
ff
COST OF UNITS PROVIDED
100
90
[938
80
S
70
m
V
f
50
o
x
14
14
12
12
30
1 ? J / - J 5 AV G
T
8
6
+**
/
2
J
8
6
X
N
I 4
2
50
40
o
o
30
>
1 *J/"J 5 AVG.
10
10
4
/
40
J
60
20
1kJ_j
*
4
4*
4*
4*
*''
V!
CO
x 1
20
10
O
208
Federal Home Loan Bank Keview
Wholesale building material prices fell off slightly,
as did the Federal Home Loan Bank Board's building cost index. Rentals paid on newly rented properties, as shown by the National Industrial Conference Board's index, declined one-half of 1 percent.
Last reports for the Labor Department's index of
rentals on occupied properties, which is collected
quarterly, showed a slight increase. The relation of
these two indexes is shown on the facing single
column chart.
Ever since 1934 the N. I. C. B. market rental
index has been above the Department of Labor's
occupied rental index, and although both have been
increasing, the rate of increase of the former has been
much greater than of the latter. The slight turn
downward of the N. I. C. B. market rental index may
be a reflection of the drop in industrial production
and the attendant drop of employment. This index
in January was still 13 percent below the 1926 level.
In January the index of real estate foreclosures in
metropolitan communities was 170 as compared with
182 for the previous month. This decrease of 6.5 percent was substantially more than the 5-year average
drop of 2 percent between these two months. There
was some concentration of increases over the preceding month in the States of Ohio and Indiana and
in the far western States. Otherwise, rises and recessions were scattered.
The January index stood 40.8 percent below the
level of January 1937, when the figure was 287. Of
the 82 communities reporting in January, 32 showed
increases in foreclosures from December while 50
indicated decreases, and 1, no change.
RATE OF BUILDING
The entire picture of the rate of building (the number of privately-financed family dwelling units provided per 100,000 population) is distorted because of
the activity in New York City. As is shown on the
accompanying chart, in District 2 where New York
City is located, 170 dwelling units were authorized
for each 100,000 population. That is, in one month,
one new dwelling was authorized for about every 150
families. As has already been explained, this unusual number will probably cause an unfavorable reaction in the months which follow.
The rest of the country, although overshadowed by
District 2, has shown some favorable changes in the
rate of building. The rate increased in seven other
Federal Home Loan Bank Districts between December and January. In Los Angeles the rate rose from
34 to 44 dwelling units per 100,000 population. In
March 1938
Little Rock it rose from 23 to 33, and in WinstonSalem from 16 to 22.
However, the January 1938 rate was below the
January 1937 rate in seven Districts, Los Angeles
and Winston-Salem being among them.
Indexes of Small-House Building Costs
[Table S]
•
FKOM scattered and sporadic beginnings early
in the fall of 1937 the cost of construction has
now turned definitely downward. Reports from 23
cities for the February building cost index clearly
show this. Whereas in the earlier reports declines
were scattered geographically and were intermixed
with considerable increases in some areas, the February reports, in comparison with November for the
same cities, were downward in all except seven
cities. Only three of those seven showed increases
of more than 1 percent and one reported no change.
It is particularly significant that February building
costs in four cities were below costs in these cities for
February 1937 and in one city, Little Rock, were
below costs in February 1936.
Cities in which declines were reported cover two
District areas. One begins in Philadelphia and runs
diagonally across the country to Texas. The other
is in Reno, Nevada, and California (with the exception of Los Angeles where costs rose slightly and
where the total cost was already below that of other
California cities).
The greatest decline was in Nashville, Tennessee,
where the standard house cost 6.1 percent less in
February than in November, due to both materials
and labor. It is significant that the resulting total
cost of $5,144 was lower than the cost in this city
for February 1937, but still about $100 higher than
for February 1936.
In Columbus, Ohio, a 5.6-percent drop (due to
both materials and labor) resulted in a total cost of
$5,791 which also was below the cost a year before.
Although the third largest decline was reported for
Harrisburg, costs in February were still above the
previous year. The decline of 5.2 percent was due
principally to labor.
In Jackson, Mississippi, a 2.2-percent increase
was reported as being principally due to material
prices. This rise counteracts a comparable decline
between August and November, putting the total
cost back to $6,115.
209
On the other hand, in Wilmington, Delaware,
labor was responsible for the rise, as material costs
declined somewhat. Costs in Wilmington have
been increasing since November 1936. The total
cost in February 1938 was $5,914—a thousand dollars
below some of the reporting cities.
New Orleans costs have been increasing ever
since May 1936—shortly after the establishment of
the index. The latest rise from November to
February was 2.2 percent and was due to both
materials and labor. For the latter month the
total cost was $6,340.
Monthly Lending Activity of Savings
and Loan Associations
[Tables 4, 5, 6} and 7]
•
FOR the seventh consecutive month, as the
accompanying chart makes clear, the estimated
volume of loans by all savings and loan associations
declined. During January, new loans amounted to
19 percent less than during December, and 7 percent
HOME CONSTRUCTION LOANS MADE BY ALL SAVINGS AND LOAN
ASSOCIATIONS COMPARED WITH HOME BUILDING ACTIVITY
MILLIONS
OF DOLLARS
less than during January 1937. For the country as
a whole, every type of association showed a decrease
in new lending activity as compared either with the
preceding month, or with January 1937. It is
estimated that $41,142,000 was loaned by all savings
and loan associations during January 1938, in
comparison with $50,490,000 in December 1937, and
$44,414,000 in January 1937. The January 1938
total is the lowest monthly volume estimated to
have been made since February 1936.
The Los Angeles Federal Home Loan Bank District
was the only one of the 12 to show an increase in
estimated total new loans in January, with a volume
of 11 percent above the December level. The New
York, Little Rock, and Topeka Bank Districts were
the only ones to record increases in new loans made
during January 1938 over January 1937.
All types of loans dcreased in dollar volume
during January in comparison with December
totals. Although the amount of new construction
loans was the smallest for any month since March
1936, and reflects the continued decline in home
building activity shown on the chart, the decline
in volume of construction loans from December 1937
to January 1938 was only 17 percent, as compared
with a 25-percent decline from December 1936 to
January 1937.
TOTAL LOANS MADE BY ALL SAVINGS ANO LOAN ASSOCIATIONS
UNITED STATES-BY MONTHS
•HOME BUILDING ACTIVITY.0
MILLToNS
OF DOLLARS
90
1
-ju^H
U
iu*®~
TOTAL HOME CONSTRUCTION LOANS'
NON-MEMBERS-
JFMAMJJASON
1936
0
Estimated .cost of oil 1 and 2 family dwellings privately financed in all
cities of 2,500 or more population. Based on building permits reported
to U. S. Dept. of Labor.
0 Estimated for all active associations by Federal Home Loan Bank Board.
210
FMAMJJASOND
1938
Federal Home Loan Bank Review
LENDING ACTIVITY OF SAVINGS AND LOAN ASSOCIATIONS
AS A PERCENT OF TOTAL ASSETS*
BY TYPE OF ASSOCIATION - 1936 COMPARED WITH 1937
70%
6Q
50
40
1936
30
20
UNITED STATES
2
NEW YORK
3
PITTSBURGH
WINSTON SALEM
5
CINCINNATI
': ^ ;;!•'"';>/-:-*'-|
amr
1
^ ^ ^ ^
6
INDIANAPOLIS
gj;
Based on Assets as of June 30
March 1938
48730—38
3
211
In the distribution of loans by purpose during
January, a significant increase in refinancing loans
appeared. During the entire year 1937 refinancing
loans constituted 21 percent of the total amount of
loans made by savings and loan associations. In
December 1937 refinancing loans accounted for 22.5
percent of the total and in January 1938 had increased to 24.4 percent. The ratio of new construction loans showed little variation from December but
home purchase loans, which averaged 35 percent of
total loans during 1937 and in December 1937 stood
at 32.4 percent, had declined further during January
to 29.2 percent.
There was little change in the ratio of lending by
different types of associations during January except
that Federal associations increased their proportion
of the total by 1 percent to 41 percent, while nonmember associations dropped 1 percent to 16 percent
of the total. State member associations remained
unchanged at 43 percent.
The chart on page 211 shows the increase during 1937 in the lending activity of savings and loan
associations as related to mid-year assets. For the
United States as a whole the lending activity rate increased to 18 percent in 1937 as compared with 16
percent in 1936. Nine Bank Districts reported increases in the lending activity rate during 1937 while
in two Districts the rate remained unchanged, and
in one District it decreased slightly.
Analysis by type of institution indicates that declines in the rate of activity of Federal associations
were experienced in nine of the Districts, while lending activity rates for State members and for nonmembers each indicated significant declines in only two
Districts. The slackening in the rate of lending
activity by Federal associations is due to the rapid
rise in assets which overshadowed the increases reported in lending activity. In each of the 12 Federal
Home Loan Bank Districts, Federal associations reported increases in the total dollar volume of loans
made in 1937 as compared with 1936. For the country as a whole, new loans by Federal savings and loan
associations amounted to 35 percent of mid-year
assets in 1936 and to 31 percent of mid-year assets in
1937. For State members the 1936 lending activity
rate was 14 percent and in 1937, 16 percent. For
nonmembers the 1936 lending activity rate was 9
percent and in 1937, 11 percent.
212
Federal Savings and Loan System
[Table 11]
•
OUT of every dollar loaned by Federal savings
and loan associations a far smaller proportion
went for refinancing in 1937 than four years ago.
The place of refinancing in the average dollar loaned
has gradually been taken by home purchase and new
construction loans. This gradual shift in the purposes for which Federal mortgage loans have been
made is shown in the facing chart.
In 1934, 52 percent of the average dollar went for
refinancing; during the last six months of 1937 only
21 percent went for this purpose. Likewise, in 1934
construction and home purchase loans represented
18 and 12 percent, respectively; in the last six months
of 1937 these two purposes had grown to 34 percent
and 31 percent. Loans for repairs and reconditioning and for other purposes showed relatively smaller
fluctuations during this period. This trend away
from refinancing loans seems a healthy development
in the growth of the Federal System.
The year-end flurry of investments and repurchases
reveals a very significant fact about the position of
Federal savings and loan associations in the investment field.
In January many investors withdraw for the purpose of reinvestment; they have waited for dividend
payments before doing so. Consequently, the
change in private share accounts during this period
is a good indication of the public favor in which the
institution is held. On this basis, the showing of the
reporting Federals was an exceptionally good one.
They report a net increase of 34,799 share accounts.
That is, each association had about 35 more accounts
at the end of January than at the end of December.
In view of 19 million dollars of repurchases, the actual
number of new accounts opened must have been
much greater.
Dividend payments to share accounts and the
cash needs of shareholders at the end of the year also
contributed to the fluctuations. Repurchases were
four times as heavy in January as in December while
investments increased twofold. In the later months
repurchases were 58 percent of investments.
For the first time since June 1936 the assets of
reporting Federal savings and loan associations declined between two consecutive months. This
Federal Home Loan Bank Review
SUMMARY OF LOANS MADE BY REPORTING
FEDERAL SAVINGS AND LOAN ASSOCIATIONS
HOW THE AVERAGE DOLLAR.
LOANED WAS SPENT
1934-1937
TOTAL AMOUNT LOANED
EACH DISK REPRESENTS 20 MILLION DOLLARS
1934
12 MONTHS
«
1935
FIRST 6 MONTHS
1935
LAST 6 MONTHS
1936
FIRST 6 MONTHS
1936
^^A ^^A ^^A ^^B ^^A ^^A H—
LAST MONTHS' ^ ^ V ^ ^ V ^ ^ V ^ ^ V ^ ^ V ^ ^ V V f l r
1937
^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^
£j
F/f?ST MONTHS ^ ^ V ^ ^ V ^ ^ V ^ ^ V ^ ^ V ^ ^ V ^ ^ V
1937
^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^
LAST 6 MONTHS ^ ^ V ^ ^ V ^ ^ V ^ ^ P ^ ^ ^ ^ ^ ^
•
CONSTRUCTION
j ^ H REPAIRS end RECONDITIONING
HOME PURCHASE
I V i
^ ^ ^
^ ^ ^
V |
£
^
OTHER PURPOSES
REFINANCING
March 1938
213
decline was slight, amounting to 0.3 percent, and
resulted from book adjustments at the end of the
year. The charge-off of accumulated expenses
against income and of losses against reserves together
with dividend payments tended to produce a net
asset figure in January as against a gross figure in
December.
The monthly volume of mortgage lending by
reporting Federal associations has been declining
steadily since the May-June period. The last
increase in June was only 0.3 percent; the amount for
1,166 associations was $29,822,500 as compared to
$15,841,600 for 1,198 associations in January—a
decline of 47 percent.
In January the 1,198 Federals made 32.6 percent
of their loans for new construction—the same percentage as in December. Of the remainder, 26.7
percent was for home purchase, 24.8 percent for
refinancing, 6.1 percent for reconditioning, and 9.8
percent for other purposes.
Progress in number and assets of Federal savings
and loan associations
Number
New
Converted
Approximate assets
Dec.
31,
1937
Jan.
31,
1938
Dec. 31, 1937
Jan. 31, 1938
646
682
645
687
$242, 558, 783
828, 707, 156
$270, 674, 572
856, 489, 655
Total. . 1,328 1,332 1, 071, 265, 939 1, 127, 164, 227
During January six State-chartered associations
converted to the Federal charter, and there was a
merger of two other converted associations. The
consequent net increase of five associations made a
total of 687 converted Federal associations. One
merger among the newly organized Federals decreased
the total to 645. On January 31,1938 there were 1,332
such associations with approximately $1,071,265,939
in assets.
Federal Savings and Loan Insurance
Corporation
[Tables 9 and 10]
•
KEPORTS of monthly operations for December
and January from 355 identical insured Statechartered savings and loan associations reflect year214
end adjustments, seasonal declines, and general
business developments. It is difficult to dissociate
these factors in analyzing the fluctuations between
these two months.
Private share investments were principally affected
by year-end dividend declarations. However, the
crediting of dividends to share accounts could not
account for all of the 99.7-percent rise in monthly
share investments. The net increase of 2,321 new
private share accounts indicates that new money
invested in these associations was also a contributing
factor. But the net position of share accounts at
the end of January was little better than at the end
of December because of heavy repurchases. Whereas December repurchases were only 70 percent of
investments, in January they were 99 percent.
Heavy repurchases commonly follow the declaration
of dividends.
This is the fourth reporting period that total
monthly mortgage lending has declined from the
preceding month. Such continuous declines have
been sufficient to reduce materially the activity of
these associations. In September, 342 reporting
associations loaned $8,095,000; in January, 355
associations loaned only $4,547,800. In view of the
increase in the number reporting, it may be fairly
said that their activity has been cut in half.
There were only very slight shifts in the proportion
of loans made for different purposes between December and January. New construction and home
purchase made up a slightly smaller part of the total
in the latter month while loans for reconditioning
increased. The proportions in January were as
follows: new construction, 23.5 percent of the total;
home purchase, 31.1 percent; refinancing, 21.8 percent; reconditioning, 8.6 percent; and other purposes,
15.0 percent. Mortgage loans outstanding remained almost stationary during January.
The decline in the combined assets of these associations during January may be attributed to the same
factors which caused a decline in assets of reporting
Federal associations. It does not represent an
actual shrinkage in the size of the associations, but
an adjustment of accounts. The charge-off of expenses and losses at the end of the year and the
payment of dividends might be termed an adjustment
of the growth which had taken place during the
preceding six months, A similar decline was recorded between December 1936 and January 1937.
During the month of January the number of
insured associations increased to 1,903, with assets
of $1,552,992,581 and 1,637,415 shareholders. This
Federal Home Loan Bank Review
represents an increase of over $27,000,000 in assets,
and of more than 38,000 in the number of shareholders since December. Seventeen additional Statechartered associations and seven associations which
had converted to Federal charter were insured in
January. The number of insured new Federal
associations decreased by one, as the result of two
mergers of existing associations, and the insurance
of one new Federal. On January 31, 1938, the 1,903
insured associations comprised 583 State-chartered,
676 converted Federal associations, and 644 new
Federal associations.
Federal Home Loan Bank System
[Tables 12 and IS]
•
DURING January, the 12 Federal Home Loan
Banks advanced $3,722,000 to member institutions and received repayments of $13,280,000. The
steady rise of nearly $59,000,000 since February 1937
in the balance of advances outstanding was broken.
Advances outstanding dropped from the all-time high
of $200,095,000 at the end of December to $190,538,000 at the end of January.
This decrease was due to two factors. First, advances in January amounted to only a little more
than half the amount of advances made in January
1937, and were far below the $17,590,000 figure for
advances in December. Second, the volume of repayments was the largest for any one month since the
beginning of lending operations, and exceeded repayments for January 1937 by more than $5,000,000.
Declines were common to all Federal Home Loan
Bank Districts. No Bank made advances which even
approached closely its December total. The Pittsburgh Bank made the best comparative showing with
January advances amounting to 53 percent of the
December total of advances. The Topeka Bank was
the only one which made advances during the month
of January in an amount which exceeded repayments,
and thus increased its balance of advances outstanding.
Although it is a normal seasonal trend for advances
in January to be less in amount than advances for the
preceding month of December, nevertheless it is noteworthy new advances in January 1938 were $13,868,000 less than advances in December 1937. The comparison of the previous year-end figures shows that
in January 1937 advances were only $6,903,000less
than in December 1936.
March 1938
During the month of January, a net increase in
three members brought total membership of the
Federal Home Loan Bank System to 3,935.
Housing A c t
(Continued from p. 198)
associations need only to make application to the
Board for such lending privilege. The association
may lend in excess of 75 percent of the appraised
value of the home property securing the loan, however, only when the members of the Federal association have so authorized.
When the Federal association has obtained
acknowledgment of receipt by the Board of its
application, the association may make any first
mortgage loans approved for insurance protection
by the Federal Housing Administrator under the
provisions of Title I or Title II of the National
Housing Act, as amended. The limitations of the
Kules and Regulations for Federal Savings and Loan
Associations and of its charter as to loans made
under any other loan plan shall not apply to loans
insured by the Federal Housing Administrator,
except that the provisions covering limitations of
amount and lending area of Section 5 (c) of the
Home Owners' Loan Act shall apply.
Another resolution, also effective immediately, was
adopted by the Board to establish the powers of Federal savings and loan associations to sell and service
loans. By amendment of subsection (d) of Section
42 of the Rules and Regulations for Federal associations, it is now provided that no association shall sell
loans in an amount during any calendar year in excess of 25 percent of the total amount of loans originated during that period. A Federal savings and
loan association may not commit itself to service
loans not held by it unless the loans were originated
by the association. In no event may a Federal association commit itself to service loans in an aggregate
amount in excess of its share capital on the last day
of the month next preceding any service commitment. The limitation upon the sale of loans may be
adjusted in the case of any Federal association upon
application to and approval by the Board. The
limitation upon the sale of loans may be waived by
the President of the Federal Home Loan Bank of
which the association is a member when a Federal
association requires cash for purposes other than for
the making of loans.
215
Table 1.—Number and estimated cost of new family dwelling units provided in all cities of 10,000
population or over in the United States1
[Source: Federal Home Loan Bank Board.
Compiled from residential building permits reported to U. S. Department of Labor]
Number of family units provided
Monthly totals
Yearly totals
Monthly totals
JanuDeJanuary cember ary
1937
1937
1938
6,255
1-f amily dwellings
1,110
2-family dwellings
2
42
Joint home and business 3- and more-family dwell21, 610
ings
Total cost of units (thousands of dollars)
1937
1936
January
1938
December
1937
Yearly totals
January
1937
1937
1936
6,444
1,386
34
6,584 108, 601
670 10,126
1,031
87
97, 673 $22, 701. 9 $24, 252. 5 $28, 979. 1 $465, 223. 4 $420, 812. 2
7,648 2, 579. 7 4, 630. 0 1, 605. 3 28, 280. 2 20, 979. 8
120.2
3, 692. 0
119.6
868
305.8
3, 078. 5
7,503
2,885
54, 400 69, 975. 5 31, 400. 8
48, 275
8, 319. 4 171, 977. 9 199, 975. 3
Total residential.- 29, 017 15, 367 10, 226 168, 033 160, 589 95, 376. 7 60, 403. 5 39, 209. 6 669, 173. 5 644, 845. 8
Private housing3
Public housing
29, 017 15, 367 10, 195 164, 422 144, 311 95, 376. 7 60, 189. 6 39, 097. 0 652, 590. 4 560, 920. 5
3,611 16, 278
0
0
213.9
0
31
112.6 16, 583. 1 83, 925. 3
1
Estimate is based on reports from communities having approximately 95 percent of the population of all cities with population
of 210,000 or over.
Includes 1- and 2-family dwellings with business property attached.
3
Includes only Government-financed low-cost housing project units as reported by U. S. Department of Labor.
Table 2.—Number and estimated cost of new family dwelling units provided in all cities of 10,000
population or over, in January 1938, by Federal Home Loan Bank Districts and by States
[Source: Federal Home Loan Bank Board.
Compiled from residential building permits reported to U. S. Department of Labor]
[Amounts are shown in thousands of dollars]
All 1- and 2-family dwellings
All residential dwellings
Number of family
dwelling units
Federal Home Loan Bank Districts
and States
January January
1938
1937
29, 017
UNITED STATES
No. 1—Boston
Estimated cost
January
1938
January
1937
Number of family
dwelling units
January January
1937
1938
10, 036 $95, 376. 7 $38, 417. 7
7,407
Estimated cost
January
1938
January
1937
7,176 $25, 401. 2
$30, 150. 8
266
686
1, 194. 4
3, 221. 6
242
513
1, 133. 2
2, 773. 6
58
10
170
6
22
0
114
24
479
15
54
0
265.7
36.9
772.5
19.3
100.0
0.0
654.0
61.5
2, 265. 5
43.7
196.9
0.0
55
10
149
6
22
0
114
16
317
15
51
0
258.5
36.9
718.5
19.3
100.0
0.0
654.0
47. 5
1, 838. 5
43. 7
189. 9
0.0
23, 018
2,682
76, 026. 3
9, 791. 2
2,337
926
8, 513. 7
4, 408. 2
113
22, 905
187
2,495
517.6
75, 508. 7
1, 277. 6
8, 513. 6
81
2,256
176
750
443.6
8, 070. 1
1, 234. 6
3, 173. 6
No. 3—Pittsburgh
190
454
1, 085. 5
2, 230. 7
178
406
1, 055. 5
2, 105. 6
Delaware
Pennsylvania
West Virginia
0
144
46
16
399
39
0.0
930.4
155. 1
111.4
1, 933. 3
186.0
0
136
42
16
362
28
0.0
905.4
150. 1
111. 4
1, 859. 9
134. 3
Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont
No. 2—New York
New Jersey
New York
216
_
Federal Home Loan Bank Review
Table 2.—Number and estimated cost of new family dwelling units provided in all cities of 10,000
population or over, in January 1938, by Federal Home Loan Bank Districts and by States—Contd.
[Amounts are shown in thousands of dollars]
All residential dwellings
Federal Home Loan Bank Districts
and States
Number of family
dwelling units
January January
1937
1938
All 1- and 2-family dwellings
Number of family
dwelling units
Estimated cost
January
1938
January
1937
January January
1938
1937
Estimated cost
January
1938
January
1937
1, 151
106
233
266
92
61
236
64
93
1,466
85
404
422
90
154
136
63
112
$3, 399.
159.
830.
824.
204.
190.
669.
152.
368.
8
2
3
1
8
8
5
9
2
$4, 444. 2
134. 5
1, 321. 8
1, 334. 5
211.4
528. 4
398. 2
131. 1
384. 3
859
102
63
247
88
61
149
60
89
1,094
85
96
403
90
154
128
44
94
$2, 603. 6
149.9
422.8
783.4
197.3
190.8
345.0
147.9
366.5
$3, 632.
134
629
1, 298.
211
528
387
102
339
4
5
7
8
4
4
6
5
5
N o . 5—Cincinnati
Kentucky 1
Ohio
Tennessee. _
316
50
211
55
379
25
263
91
1, 208.
102.
981.
124.
2
2
1
9
1, 987.
100.
1, 675.
212.
260
40
165
55
347
25
235
87
1, 023. 2
77.2
821. 1
124.9
1, 871.
100
1 564
206
1
0
4
7
N o . 6—Indianapolis
Indiana
Michigan
230
71
159
495
69
426
1, 027. 5
238.5
789.0
2, 708. 2
290. 0
2, 418. 2
230
71 |
159
492
66
426
1, 027. 5
238.5
789.0
2, 706. 8
288 6
2, 418. 2
N o . 7—Chicago
Illinois
Wisconsin
106
86
20
307
228
79
545.8
438. 1
107.7
1, 792. 6
1, 446. 7
345.9
106
86
20
250
184
66
545.8
438. 1
107.7
1, 594. 9
1 275 6
319 3
N o . 8—Des Moines
Iowa
Minnesota
Missouri
North Dakota
South Dakota
198
28
73
92
3
2
183
27
59
94
0
3
661.2
93.8
263.7
294.2
5.5
4.0
774.2
153.2
255.2
359.7
0.0
6. 1
186
28
73
80
3
2
168
27
44
94
0
3
643.2
93.8
263.7
276.2
5.5
4.0
721.
153
202
359
0
6
4
2
4
7
0
1
1,105
27
91
69
26
892
827
16
127
126
32
526
2, 543. 3
68.8
227.0
106. 1
53. 8
2, 087. 6
2, 014. 4
47.9
420.3
124.7
92.4
1, 329. 1
1,069
27
91
65
26
860
795
16
127
119
32
501
2, 466. 0
68.8
227.0
103.5
53.8
2, 012. 9
1, 925.
47
420
116.
92
1, 249.
8
9
3
1
4
1
197
39
33
884. 9
172. 2
107. 8
39.9
565. 0
756.8
158.4
116.6
38.0
443.8
231
33
42
11
145
193
39 1
29 !
5
120
689. 6
149. 2
107. 8
39.9
392. 7
747.8
158 4
107 6
38 0
443 8
667. 4
14. 8
50.6
223. 9
38.4
315. 7
24.0
531.3
8.3
2.0
280.4
20.9
196.7
23.0
201
7
12
52
13
112
5
142 1
3
2 1
70
8
55
4
615. 0
14. 8
25.6
223. 9
38.4
298. 3
14.0
517.
3.
2
274
20
193.
23.
6, 132. 4
2, 207
64.5
30
33
6, 029. 5
1, 842 1 2, 177
38.4
0 1
7
8, 164. 9
102.8
8, 062. 1
0.0
1,508
33
1,468
7
No. 4—Winston-Salem
Alabama
District of Columbia
Florida
Georgia
Maryland
North Carolina
South Carolina
Virginia
_
N o . 9—Little Rock
Arkansas
Louisiana
Mississippi.
New Mexico
Texas
i
__
N o . 10—Topeka
Colorado
Kansas
Nebraska
Oklahoma.- _ __
N o . 11—Portland
Idaho
Montana
Oregon
Utah
Washington
Wyoming
u
213
247
7 1
28
52
13
138
_
_ _ _
N o . 12—Los Angeles. _ .
Arizona. _
California
Nevada.
_
1
308
42 1
42
1
9
1 1, 882
1
January 1937 estimated for Kentucky.
March 1938
5
120
153
6
74
59
4
6
0
5
1 1
1,850
5, 084. 9
27
64.5 i
1,823
4, 982. 0
0 1
38.4 !
3
3
0
4
9
7
0
7, 145. 9
94 3
7, 051. 6
0.0
Table 3.—Cost of building the same standard house in representative cities in specific months
NOTE.—These figures are subject to correction
[Source: Federal Home Loan Bank Board]
Total building cost
Cubic-foot cost
Feb.
1938
No. 3—Pittsburgh:
Delaware:
Wilmington..
Pennsylvania:
Harrisburg-_.
PhiladelphiaPittsburgh. ..
West Virginia:
Charleston...
Wheeling
No. 5—Cincinnati:
Kentucky:
Lexington..
Louisville..
Ohio:
Cincinnati.
Cleveland..
Columbus..
Tennessee:
Memphis-,
Nashville..
No. 9—Little Rock:
Arkansas:
Little Rock-Louisiana:
New OrleansMississippi:
Jackson
New Mexico:
Albuquerque.
Texas:
Dallas
Houston
San Antonio..
No. 12—Los Angeles:
Arizona:
Phoenix
California:
Los Angeles
San Diego
San Francisco _
Nevada:
Reno
Feb.
1937
Feb.
1938
Nov.
1937
Aug.
1937
May
1937
Feb.
1937
Nov.
1936
Aug.
1936
May
1936
$0. 246 $0,225 $5, 914 $5,811 $5, 784 $5, 737 $5, 406 $5, 258 $5, 259 $5,290
.238
.229
.273
.236
.228
.257
5,716
5,508
6,543
6,031
5,720
6,715
6,186
5,948
6,781
6,186
5,944
6,730
5,668
5,483
6,179
5,408
5,010
5,920
5,405
4,929
5,433
5,439
4,870
5,405
.261
.237
.244
6,260
6,312
6,836
6,350
6,704
5,857
5,696
5,846
5,696
5,763
5,564
5,477
5,484
5,811
5,635
5,883
5,721
6,066
5,887
6,111
5,223
5,456
5,237
5,338
5,120
5,326
.228
.242
.271
.276
.241
244
263
252
6,504
6,627
5,791
6,689
6,827
6,134
6,711
6,981
6,536
6,321
6,756
6,352
5,849
6,320
6,052
5,748
6,213
5,778
5,932
6,165
5,850
5,827
6,147
5,529
.233
.214
228
,219
5,591
5,144
5,748
5,476
5,752
5,504
5,704
5,421
5,462
5,267
5,092
5,094
5,080
5,096
5,120
5,089
215
,216
5,164
5,186
5,208
5,285
5,195
5,136
5,202
5,215
.264
,233
6,340
6,204
6,027
5,911
5,601
5,395
5,124
5,075
,255
234
6,115
5,981
6,112
5,849
5,607
5,412
5,365
5,333
,278
,248
6,680
6,653
6,744
6,358
5,948
5,827
5,779
5,625
252
.255
,249
.247
,245
6,046
6,111
6,147
6,047
6,250
6,147
6,073
6,284
6, 143
6,391
6,284
5,968
5,935
5,884
5,641
5,809
5,538
5,641
5,809
5,532
5,618
5,933
5,532
.280
.245
6,730
6,706
6,814
6,742
5,885
5,843
6,032
6,112
.245
.251
.265
.242
,256
.263
5,885
6,024
6,363
5,833
6,218
6,375
6,001 6,015
6, 181 6,141
6,452 6,407
5,800
6,137
6,319
5,489
5,581
6, 107
5,301
5,361
6,039
5,239
5,381
5,907
.276
.265
6,623
6,677
6,677
6,360
6,354
6,313
6,324
6,641
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 onfirstfloor;3
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, an 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 3 months from the same dealers, and current wage rates are obtained from
the same reputable contractors and operative builders.
218
Federal Home Loan Bank Review
RATE OF RESIDENTIAL BUILDINTG IN ALL CITIES OF 10,000 OR MORE POPULATION
REPRESENTS
THE ESTIMATED
NUMBER
OF PRIVATELY
FINANCED
FAMILY DWELLING
UNITS PROVIDED
PER 100,000
POPULATION
Source: Federal Home Loan Bank Board. Compiled from Building Permits reported to US. Department of Labor.
FEOERAL
.^
DISTRICT I
BOSTON
\/a*
"**
HOME LOAN BANK
80 I
DISTRICTS
DISTRICT 3
PITTSBURGH
DISTRICT 2
NEW YORK
rPn
J L J
V
1
•
1 JUL. AUG. SEP OCT NOV OEC.
'
JUN JUL. AUa SEP OCT NOV 0£C.
1931-33 AVG-}
fl93B
°
f JUN JUL. AUG SEP OCT NOV OEC
JAN. f
DISTRICT 7
CHICAGO
DISTRICT 6
INDIANAPOLIS
DISTRICT 5
CINCINNATI
I. FEa MAR. APR M
- / S J / - 5 5 AV6
t
FEa MAR APR MAY
JUN. JUL. AUG. SEP OCT. NOV DEC
JAN, FEa MAR. APR MAY
JAN. FER MAR APR MAY
JVM. JUL. AUG. SEP OCT NOV OEC.
JUR JUL. AUG. SEP OCT I
UNITED STATES AVERAGE
1930-1938
60
50
v>
y- 40
z
•D
30
A^
r*n
J^ [*Vr
\r
201
J
r
^^Tj
10
i M11
I.I.I
111
11111111111
„i i„i i l l i i i l i
i i I I i I I I I I l
SEP
March 1938
DEC.
I i I I I i t I, I i i
MAR.
« •
• » •
• '
•
•
• '
•
•
'
« •
• -•
• •
• •
•
i
< 11
i
•
t
i
i
i 1
JUN.
219
Table 4.—Estimated volume of new loans by all savings and loan associations/ classified according
to purpose
[Thousands of dollars]
Mortgage loans on homes
Month
January.
February
March
April
May
June
July
August
September
October
November
December
January
Home purchase
Construction
1937.
$209,
11,
13,
18,
22,
20,
21,
20,
19,
17,
509
510
629
007
381
831
696
934
172
277
494
227
351
$161, 393
10, 643
11,405
15, 502
14, 904
10, 057
$267,
14,
16,
22,
27,
28,
28,
24,
23,
24,
22,
18,
16,
851
884
084
251
098
600
628
283
342
942
17, 114
14, 582
13, 043
Reconditioning
Refinancing
15,
15,
14,
14,
12,
12,
11,
11,
113
905
668
382
919
695
000
350
1938
10, 796
$76, 301
4,794
5,298
6,501
7,261
7,016
7,369
6,317
6,026
6,582
6,791
5,885
6,461
$49, 435
2,583
2,667
3,915
4,949
4,862
5,069
4,472
4,339
4,691
4,527
4,076
3,285
15, 811
Total loans,
all purposes
Loans for
all other
purposes
2,745
$764,
44,
49,
66,
77,
76,
78,
70,
67,
66,
63,
53,
50,
5,640
489
414
083
176
500
422
667
674
261
411
621
770
490
41, 142
Table 5.—Estimated volume"of new loans by all savings and loan associations, classified according to
type of association
[Amounts are shown in thousands of dollars]
Percent of total
Volume of loans
Month
Total
January
February
March
April
May
June
July
August
September
October
November
December
January
1937.
$764, 489
44, 414
49, 083
66, 176
77, 500
76, 422
78, 667
70, 674
67, 261
66,411
63, 621
53, 770
50, 490
Federal
State
members
278
543
360
829
915
998
577
693
768
189
539
829
038
$338, 174
18, 671
21, 509
16, 781
17, 885
$307,
17,
19,
27,
32,
30,
31,
28,
26,
26,
24,
20,
20,
28, 325
33, 153
34, 616
35, 221
31, 799
29, 866
29, 673
29, 020
24, 524
21, 797
1938
220
41, 142
Nonmembers
$119,037
8,200
8,214
10, 022
11, 432
10, 808
11,869
10, 182
10, 627
10, 549
10, 062
Federal
State
members
Nonmembers
8,417
8,655
40
39
39
42
42
41
40
41
40
39
38
39
40
44
42
44
43
43
45
45
45
44
45
46
46
43
16
19
17
15
15
14
15
16
14
16
16
15
17
6,476
41
43
16
Federal Home Loan Bank Review
Table 6.—Estimated volume of new lending activity of savings and loan associations/ classified by
District and type of association
[Amounts are shown in thousands of dollars]
New loans
Federal Home Loan Bank District and type of
association
January
1938
December
1937
Percent increase, Jan.
1938 over
Dec. 1937
New loans,
January
1937
Percent increase, Jan.
1938 over
Jan. 1937
$41, 142
16, 781
17, 885
6,476
$50, 490
20, 038
21, 797
8,655
-19
-16
-18
-25
$44, 414
17, 543
18, 671
8,200
-7
—4
—4
-21
3,986
1,164
1,939
883
5,075
1,323
2,452
1,300
-21
-12
-21
-32
4,426
1,113
1,818
1,495
— 10
+5
+7
— 41
District 2: Total
Federal
State member
Nonmember
3,447
1,007
1,141
1,299
3,945
1,405
1,494
1,046
-13
-28
-24
+ 24
3,295
1,215
995
1,085
+5
-17
+ 15
+ 20
District 3: Total
Federal
State member
Nonmember
2,836
731
1,127
978
3,503
1,037
1,199
1,267
-19
-30
-6
-23
3,177
607
828
1,742
— 11
+20
+ 36
— 44
6,271
2,394
2,971
906
7,091
2,881
3,376
834
-12
-17
-12
+9
6,492
2,492
3,090
910
-3
-4
-4
0
District 5: Total
Federal
State member
Nonmember
5,232
2,808
2,272
152
6,778
3,375
3,159
244
-23
-17
-28
-38
6,270
3,070
2,782
418
-17
-9
-18
-64
District 6: Total
Federal
State member
Nonmember
2,083
962
915
206
2,570
1,302
1,078
190
-19
-26
-15
+8
2,408
1,157
1,051
200
-13
-17
-13
+3
District 7: Total
Federal
State member
Nonmember
3,696
1,400
2,012
284
4,829
1,861
2,372
596
-23
-25
-15
-52
4,078
1,328
2,356
394
-9
+5
-15
-28
2,175
971
719
485
3,909
1,445
1,438
1,026
-44
-33
-50
-53
2,493
1,178
839
476
-13
-18
-14
+2
District 9: Total
Federal
State member
Nonmember
2,873
1,230
1,496
147
3,501
1,176
1,981
344
-18
+5
-24
-57
2,827
986
1,482
359
+2
+25
+ 1
-59
District 10: Total
Federal
State member
Nonmember
2,663
1,267
638
758
3,454
1,310
879
1,265
-23
-3
-27
-40
2,471
987
649
835
+8
+ 28
-2
-9
1,804
992
512
300
2,152
1,039
631
482
-16
-5
-19
-38
1,930
1,259
524
147
-7
-21
-2
+ 104
4,076
1,855
2,143
78
3,683
1,884
1,738
61
+ 11
-2
+23
+ 28
4,547
2,151
2,257
139
-10
-14
-5
-44
United States: Total
Federal
State member
Nonmember
District
_
1: Total
Federal
State member
Nonmember
District 4: Total
Federal
State member
Nonmember
__
_
1
District 8: Total
Federal
State member
Nonmember
District 11: Total
Federal
State member
Nonmember
District 12: Total
Federal
State member __
Nonmember
March 1938
_
_ __ _
221
Table 7.—Monthly lending activity and total assets as reported by 2,619 savings and loan associations
in January 1938
[Source: Monthly reports from savings and loan associations to the Federal Home Loan Bank Board]
[Amounts are shown in thousands of dollars]
L o a n s m a d e in J a n u a r y according to p u r p o s e
N u m b e r of
associations
M o r t g a g e loans on 1- to 4-family n o n f a r m h o m e s
Federal H o m e Loan
B a n k Districts and
States
Refinancing a n d reconditioning 2
Submitting
reports
Reporting
loans
made
Construction
L o a n s for all
other p u r p o s e s
T o t a l loans, all
purposes
Home purchase'
Amount
Number
Number
Amount
Number
Amount
Total
numT o t a l assets, ber of
savings
J a n . 31,
and
1938 3
loan
associations 4
Refinancing
Recondi- N u m ber
tioning
Amount
Number
14,275 $29,368. 6 $2,723,475. 7
Amount
2,619
2,093
2,708
$8,169.9
3,421
$8,222. 3
5,143
$7,218.9
$1,901.0
3,003
$3,856.5
1,222
1,016
381
1,073
797
223
1,672
891
145
5,196.1
2,627.1
346.7
1,746
1,372
303
4,282.3
3,294.7
645.3
2,830
1,982
331
3,949.4
2,890.4
379.1
974.5
802.4
124.1
1,227
1,426
350
1.559.7
1.966.8
330.0
7,475
5,671
1,129
15,962.0
11,581.4
1,825.2
1,062,911.8
1,355,570.0
304,993.9
1,328
2,565
5,870
161
135
152
603.6
265
853.3
437
638.2
167.3
274
354.4
1,128
2,616.8
324,595. 7
366
25
19
95
10
7
5
20
15
83
9
5
3
42
2
77
8
20
3
154.6
3.3
343.8
16.2
77.2
8.5
23
15
161
18
44
4
82.4
27.4
549.5
41.8
143.7
8.5
57
33
250
34
48
15
162.6
30.1
337.7
21.3
61.0
25.5
8.1
7.7
115.9
17.2
14.4
4.0
8
30
149
37
31
19
14.6
65.8
166.6
22.5
46.4
38.5
130
80
637
97
143
41
422.3
134.3
1,513.5
119.0
342.7
85.0
17, 434.1
10,115. 4
248,516. 7
11,273. 5
33,474.6
3,781.4
53
42
218
30
9
14
N o . 2—New Y o r k . _
270
157
181
612.3
186
677.8
229
453.8
215.3
177
216.9
773
2,176.1
368,241.0
1,787
New Jersey.
N e w York
142
128
53
104
14
167
51.8
560.5
46
140
198.7
479.1
51
178
117.1
336.7
17.9
197.4
36
141
52.0
164.9
147
626
437.5
1,738. 6
139,001.3
229,239. 7
1,498
289
N o . 3—Pittsburgh
224
133
68
202.5
203
484.0
165
290.6
56.3
58
62.7
494
1,096.1
97,090.2
2,521
Delaware
Pennsylvania
W e s t Virginia
_
6
196
22
5
108
20
3
40
25
5.3
146.1
51.1
9
169
25
27.1
406.9
50.0
6
113
46
6.0
214.9
69.7
7.1
31.6
17.6
6
42
10
3.7
47.1
11.9
24
364
106
49.2
846.6
200.3
5,191.3
79,886.2
12,012.7
43
2,410
68
N o . 4—Winston-Salem.__
267
235
420
1,256.8
381
914.8
681
1,205.2
214.2
372
744.2
1,854
4,335.2
233,143.6
1,044
Alabama
_
D i s t r i c t of C o l u m b i a Florida.
Georgia
_
Maryland
N o r t h Carolina
South Carolina.
Virginia.._
16
11
46
43
48
38
39
26
16
11
39
39
38
36
34
22
12
21
96
64
26
92
78
31
15.6
195.4
358.6
110.9
110.9
201.2
162.5
101.7
17
39
29
34
111
82
33
36
24.4
166.3
79.9
47.6
311.8
147.3
62.2
75.3
29
153
55
109
46
152
86
51
24.3
517.9
95.8
145.3
92.1
155.0
91.1
83.7
13.7
45.4
35.0
10.6
7.0
50.5
33.7
18.3
17
128
41
43
13
78
37
15
15.6
384.1
92.8
31.9
19.1
131.2
53.1
16.4
75
341
221
250
196
404
234
133
93.6
1,309.1
662.1
346.3
540.9
685.2
402.6
295.4
5,858.8
91,428. 7
29,195.7
15,882.1
25,391.7
31, 521.4
14, 993. 6
18,871. 6
42
28
101
63
450
189
79
92
N o . 5—Cincinnati
367
302
305
986.7
624
1,634. 6
831
1,095. 5
315.3
501
508.2
2,261
4, 540.3
524, 714. 0
973
Kentucky
Ohio
Tennessee
52
280
35
41
231
30
43
207
55
132.2
731.8
122.7
88
524
12
211.5
1,398.3
24.8
138
610
83
168.0
819.2
108.3
58.5
222.2
34.6
65
415
21
55.4
427.4
25.4
334
1,756
171
625.6
3,598.9
315.8
53, 746. 3
453,418.2
17, 549. 5
185
732
56
UNITED STATES.
Federal
State member
Nonmember
N o . 1—Boston
Connecticut
Maine
Massachusetts
New Hampshire
R h o d e Island
Vermont
N o . 6—Indianapolis
Indiana
Michigan
N o . 7—Chicago
Illinois
Wisconsin
N o . 8—Des M o i n e s
Iowa
Minnesota
Missouri
North Dakota
South D a k o t a .
9,763
194
168
169
420.9
320
588.8
497
394.9
204.7
255
228.5
1,241
1,837.8
225,132. 2
375
138
56
126
42
105
64
226.7
194.2
255
65
463.8
125.0
403
94
251.2
143.7
177.6
27.1
185
70
149.0
79.5
948
293
1,268.3
569.5
129,168. 5
95,963. 7
304
71
266
209
136
462.9
223
624.3
458
813.1
190.2
178
252.1
995
2,342.6
210, 751.8
1,071
198
68
153
56
90
46
318.1
144.8
186
37
532.3
92.0
364
94
636.9
176.2
151.1
39.1
128
50
182.7
69.4
768
227
1,821.1
521.5
158,731.0
52,020.8
864
207
192
158
116
350.3
164
324.4
333
462.3
80.9
ise"
16072
769"
1,378.1
123,939.8
447
53
46
70
16
7
47
39
57
11
4
26
51
28
6
5
72.3
195.3
63.5
15.1
4.1
54
35
62
10
3
82.4
93.3
127.1
13.9
7.7
105
83
122
17
6
117.9
149.7
170.4
15.9
8.4
33.7
19.7
20.0
7.2
0.3
51
36
54
9
6
62.5
46.5
37.9
10.9
2.4
236
205
266
42
20
368.8
504.5
418.9
63.0
22.9
27,019.8
35.708.4
50.787.5
8.382.5
2.041.6
100
78
227
24
18
1
Loans for home purchase include all those involving both a change of mortgagor and a new investment by the reporting institution on a property already built,
whether
new or old.
a
Because many refinancing loans also involve reconditioning it has been found necessary to combine the number of such loans, though amounts are shown separately.
Amounts shown under refinancing include solely new money invested by each reporting institution and exclude that part of all recast loans involving no additional
investment
by the reporting institution.
8
Assets are reported principally as of Jan. 31,1938.
4
Number of members as of Jan. 31, 1938. Number of nonmembers is based upon the most recent available data for 1936 or 1937, with adjustment for conversion
through Jan. 31,1938, except for Maryland where the number of nonmembers is estimated.
222
Federal Home Loan Bank Keview
Table 7.—Monthly lending activity and total assets as reported by 2,619 savings and loan associations
in January 1938—Continued
[Amounts are shown in thousands of dollars]
Loans made in January according to purpose
Number of
associations
Federal Home Loan
Bank Districts and
States
Submitting
reports
Reporting
loans
made
Mortgage loans on 1- to 4-family nonfarm homes
Construction
Refinancing and reconditioning
Total loans, all
purposes
Loans for all
other purposes
Home purchase
Amount
Num- Amount Num- Amount
ber
ber
Number
Refinancing
Recondi- Num- Amount
tioning
ber
Number
Amount
Total
number of
Total assets, savings
Jan. 31,
and
1938
associations
256
219
328
$790.1
347
$677.1
423
$427.2
$181.4
329
$491.0
1,427
$2,566.8
$160,244.6
409
Arkansas
Louisiana
Mississippi
New Mexico
Texas__
39
67
26
10
114
33
58
23
8
97
29
79
23
7
190
62.1
213.7
36.2
16.5
461.6
31
108
17
8
183
37.0
263.3
23.9
13.1
339.8
70
96
46
11
200
55.4
95.4
48.1
16.2
212.1
21.0
68.8
9.8
5.1
76.7
50
95
38
8
138
61.3
256.0
20.7
7.7
145.3
180
378
124
34
711
236.8
897.2
138.7
58.6
1,235.5
10,978.8
81, 523.8
4,635.6
2,868.2
60,238.2
66
89
50
22
182
No. 10—Topeka
No. 9—Little Rock
186
160
185
519.7
330
623.2
295
310.7
90.4
325
437.7
1,135
1,981.7
151,663. 5
373
Colorado..
Kansas
Nebraska
Oklahoma
35
69
32
50
28
62
26
44
29
50
21
85
64.2
138.1
48.0
269.4
40
79
70
141
79.3
115.6
107.0
321.3
59
59
62
115
69.4
39.5
43.6
158.2
23.4
15.1
32.4
19.5
24
60
94
147
18.2
62.3
89.0
268.2
152
248
247
488
254.5
370.6
320.0
1,036.6
20,007.9
39,204.6
39,917. 7
52, 533.3
62
152
90
69
No. 11—Portland
115
106
180
390.8
161
315.2
316
347.5
94.1
195
195.9
852
1,343.5
96,385. 7
178
8
14
25
7
49
11
1
8
14
25
6
44
9
0
16
24
46
7
77
10
0
31.5
62.5
106.8
19.8
141.5
28.7
0.0
14
18
38
7
74
10
0
20.8
35.7
67.3
23.3
145.1
23.0
0.0
27
30
86
13
142
18
0
26.4
18.5
104.3
24.6
154.5
19.2
0.0
10.8
10.9
34.5
1.4
33.1
3.4
0.0
19
15
23
11
116
11
0
8.5
17.9
32.9
27.7
101.7
7.2
0.0
76
87
193
38
409
49
0
98.0
145.5
345.8
96.8
575.9
81.5
0.0
5,821.2
10,453.6
23,814.8
7,993.8
44,172.6
4,038.6
91.1
13
23
36
20
71
14
1
121
111
468
1,673.3
217
504.8
478
779.9
90.9
183
204.7
1,346
3,153.6
207,573. 6
219
41.7
3,069.9
5.9
36.1
2,033.8
203,228. 7
627.3
1, 683.8
4
198
5
12
Idaho
Montana
Oregon.._
Utah
Washington
Wyoming
Alaska
___
No. 12—Los Angeles
Arizona
California.-.
Nevada
Hawaii
3
116
1
1
3
106
1
1
6
459
1
2
17.0
1,551.2
0.6
4.5
6
208
0
3
14.4
477.3
0.0
13.1
5
465
2
6
7.4
751.8
4.4
16.3
1.3
87.5
0.0
2.1
2
178
2
1
1.6
202.1
0.9
0.1
19
1,310
5
12
Table 8.—Index of wholesale price of building materials in the United States
[1926=100]
[Source: U. S. Department of Labor]
January
February
March
April
May
June
July
August
September
October
November
December
Paint and Plumbing Structural
and
paint masteel
heating
terials
All building materials
Brick and
tile
Cement
Lumber
91.3
93.3
95.9
96.7
97.2
96.9
96.7
96.3
96.2
95.4
93.7
92.5
89.7
91.0
91.8
94.9
95.0
95.0
95.4
95.5
95.0
93.4
92.9
92.0
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
93.0
99.0
102. 1
103.0
103.0
102.2
101.3
99.5
99.0
97.3
94.8
93.8
83.7
83.4
83.9
82.9
83.7
83.6
83.9
84. 1
84.6
84.2
81.5
80.2
77.1
77.4
77.6
78.7
78.7
78.7
78.7
78.8
80.6
80.6
79.6
79.6
104.7
104.7
112.9
114.9
114.9
114. 9
114.9
114.9
114.9
114.9
114.9
114.9
92.9
95.0
98.9
99.9
101.3
101. 1
101.0
101.0
100.8
100.2
98.7
96.9
91.8
91.8
95.5
92.6
80. 1
79.6
114.9
95.8
- 0 . 8%
+0. 5%
- 0 . 2%
+ 2.3%
0.0%
0.0%
-1.3%
-0. 4%
-0.1%
-4. 3%
0.0%
+ 3.2%
0.0%
+ 9 . 7%
-1.1%
+ 2 . 0%
1937
1938
January
Other
Change:
Jan. 1938-Dec. 1937
Jan. 1938-Jan. 1937.
March 1938
223
Table 9.—Institutions insured by the Federal Savings and Loan Insurance Corporation *
Cumulative number at specified dates
Number of
shareholders
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Jan. 31,
1938
1936
1937
1935
1934
Jan. 31,
1938
State-chartered associations
Converted F. S. and L. A
New F. S. and L. A
Total
4
108
339
136
406
572
382
560
634
566
669
645
583
676
644
451
1,114
1,576
1,880
1,903
794, 353
709, 743
133, 319
Assets
Share and
creditor liabilities
Jan. 31, 1938 Jan. 31, 1938
$630, 638, 195
755, 374, 891
166, 979, 495
$547, 969, 964
692, 107, 614
155, 606, 438
1, 637, 415 1, 552, 992, 581
1, 395, 684, 016
1
Beginning Dec. 31, 1936, figures on number of associations insured include only those associations which have remitted
premiums. Earlier figures include all associations approved by the Board for insurance.
Number of shareholders, assets, and share and creditor liabilities of insured associations are as of latest obtainable date
and will be brought up to date after June 30 and December 31 each year.
Table 70.—Monthly operations of 355 identical insured State-chartered savings and loan associations
reporting during December 1937 and January 1938
December
Share liability at end of month:
Private share accounts (number)
January
Change December to January
480, 286
482, 607
Percent
+0. 5
$336, 957, 300
28, 493, 800
$337, 879, 400
28, 995, 800
+0.3
+ 1.8
365, 451, 100
366, 875, 200
+0. 4
Private share investments during month
Repurchases during month
5, 580, 500
3, 937, 200
11, 144, 400
11,023,300
+99. 7
+ 180.0
Mortgage loans made during month:
a. New construction
b. Purchase of homes
c. Refinancing
d. Reconditioning
e. Other purposes
1, 359, 900
1, 886, 800
1, 056, 600
414, 500
831, 700
1, 073, 100
1, 410, 600
991, 400
389, 200
683, 500
—21. 1
—25.2
— 6. 2
— 6. 1
— 17.8
5, 549, 500
320, 677, 500
4, 547, 800
321, 020, 800
— 18. 1
+0. 1
22, 891, 000
2, 175, 500
21, 591, 800
2, 022, 200
— 5. 7
-7. 1
25, 066, 500
23, 614, 000
— 5. 8
463, 926, 700
458, 202, 700
— 1. 2
Paid on private subscriptions
H. O. L. C. subscriptions
Total
Total
Mortgage loans outstanding end of month
Borrowed money as of end of month:
From Federal Home Loan Banks...
From other sources
Total
Total assets, end of month
224
_
,_.._.
.
. .. ,.
Federal Home Loan Bank Review
Table 11.—Monthly
operations of 1,198 identical Federal savings and loan associations reporting
during December 1937 and January 1938
December
Share liability at end of month:
Private share accounts (number)
845, 737
Paid on private subscriptions
Treasury and H. 0 . L. C. subscriptions
Total
Private share investments during month
Repurchases during month
_
Mortgage loans made during month:
a. New construction
b. Purchase of homes
c. Refinancing
d. Reconditioning
e. Other purposes
Total
Mortgage loans outstanding end of month
Borrowed money as of end of month:
From Federal Home Loan Banks
From other sources
Total
Total assets, end of month
... „.
Table 12.—Federal Home*Loan Bank advances
to member institutions by Districts
Federal Home Loan Banks
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
1—Boston
2—New York
3—Pittsburgh
4—Winston-Salem
5—Cincinnati
6—Indianapolis
7—Chicago
8—Des Moines
9—Little Rock
10—Topeka
11—Portland
12—Los Angeles
Total
March 1938
Advances
made during
Jan. 1938
Advances
made during
Dec. 1937
$178, 400. 00
563, 500. 00
500, 000. 00
592, 200. 00
118, 250. 00
84, 800. 00
287, 180. 00
110,200.00
252, 500. 00
635, 500. 00
221, 500. 00
178, 700. 00
$1, 218, 900 00
1, 123, 400. 00
930, 000. 00
2, 157, 300. 00
1, 426, 500. 00
1, 118, 150. 00
2, 500, 860. 44
1, 076, 358. 00
1, 456, 500. 00
1, 379, 800. 00
684, 000. 00
2, 519, 004. 45
3, 722, 730. 00
17, 590, 772. 89
Change December to January
January
880, 536
Percent
+4. 1
$638, 853, 800
204, 318, 400
$655, 221, 700
204, 326, 700
+ 2. 6
0.0
843, 172, 200
859, 548, 400
+ 1.9
14, 704, 200
4, 887, 000
32, 363, 500
18, 798, 700
+ 120. 1
+ 284. 7
6, 179, 900
5, 292, 400
4, 522, 900
1, 200, 800
1, 761, 600
5, 168, 300
4, 234, 200
3, 922, 900
961, 000
1, 555, 200
-16.4
— 20.0
-13.3
-20.0
-11.7
18, 957, 600
808, 546, 000
15, 841, 600
817, 040, 900
-16.4
+ 1. 1
96, 916, 900
2, 599, 800
90, 700, 600
1, 940, 600
-6.4
-25.4
99, 516, 700
92, 641, 200
-6.9
1, 050, 584, 200
1, 047, 640, 700
-0.3
Table 13.—Lending operations of the Federal
Home Loan Banks
[Thousands of dollars]
Month
December 1935
June 1936
December 1936
1937
January through June
July
August
September
October
November
December
1938
January
Loans advanced
monthly
Repayments
monthly
Balance
outstanding at end
of month
$8, 414
11,560
13, 473
$2, 708
3,895
5,333
59, 000
10, 221
11,116
9,330
8,991
7,001
17, 591
37, 344
7,707
5,080
5,426
4,461
3,707
4,832
167,
169,
175,
179,
184,
187,
200,
3,723
13, 280
190, 538
$102, 795
118, 587
145, 401
057
571
607
511
041
336
095
225
Table 14.—H.
O . L. C. subscriptions to shares of savings and loan associations—Requests and
subscriptions l
Uninsured State-chartered members of
the F. H. L. B.
System
Number
(cumulative)
Amount
(cumulative)
27
89
125
125
126
126
127
116
112
113
$1, 131, 700
3, 845, 710
5, 400, 710
5, 655, 210
6, 007, 210
6, 082, 210
6, 192, 210
2
5, 757, 210
5, 357, 210
5, 382, 210
33
279
473
515
586
623
639
665
666
675
2
45
63
52
48
47
48
38
40
40
100, 000
1, 688, 000
2, 381, 000
1, 934, 000
1, 926, 000
1, 901, 000
1, 931, 000
1, 426, 000
1, 526, 000
1, 526, 000
24
262
440
465
492
510
535
559
564
573
Requests:
Dec. 31, 1935
Dec. 31, 1936
June 30, 1937
July 31, 1937
Aug. 31, 1937
Sept. 30, 1937
Oct. 31, 1937
Nov. 30, 1937
Dec. 31, 1937
Jan. 31, 1938
Subscriptions:
Dec. 31, 1935
Dec. 31, 1936
June 30, 1937
July 31, 1937
Aug. 31, 1937
Sept. 30, 1937
Oct. 31, 1937
Nov. 30, 1937
Dec. 31, 1937
Jan. 31, 1938
1
2
Insured State-chartered associations
2
2
2
Federal savings and
loan associations
T^+oi
Number
Amount
(cumu- (cumulative)
lative)
Number
(cumulative)
Amount
(cumulative)
$2, 480, 000
21, 016, 900
32, 873, 600
35, 410, 100
39, 633, 420
41, 510, 420
42, 148, 470
43, 308, 470
43, 490, 020
44, 055, 020
553
2,617
3,669
3,838
4,088
4,217
4,255
4,285
4,324
4,342
$21, 139, 000
108, 591, 900
159, 298, 600
166, 884, 100
177, 603, 700
182, 523, 000
184, 052, 200
185, 109, 200
187, 015, 400
187, 668, 400
613
2,985
4,267
4,478
4,800
4,966
5,021
5,066
5,102
5,130
$24, 750, 700
133, 454, 510
197, 572, 910
207, 949, 410
223, 244, 330
230,115, 630
232, 392, 880
234, 174, 880
235, 862, 630
237, 105, 630
1, 980, 000
19, 455, 900
30, 283, 600
31, 176, 600
32, 950, 600
33, 675, 720
34, 954, 770
36, 086, 770
36,331,270
36,843,270
474
2,538
3,509
3,647
3,742
3,849
3,918
3,950
3,997
4,009
17, 766, 500
104, 477, 400
150, 368, 400
155, 917, 000
159, 511, 500
164, 226, 200
166, 447, 700
167, 154, 600
168, 762, 300
169, 035, 300
500
2,845
4,012
4,164
4,282
4,406
4,501
4,547
4,601
4,622
19, 846, 500
125, 621, 300
183, 003, 000
189, 027, 600
194, 388, 100
199, 802, 920
203, 333, 470
204, 667, 370
206, 619, 570
207, 404, 570
Number
Amount
(cumu- (cumulative)
lative)
Refers to number of separate investments, not to number of associations in which investments are made.
Reduction due to insurance or federalization of associations.
TableZl5.—Properties acquired by H . O . L C.
through foreclosure and voluntary deed 1
Period
Prior to 1935
1935: Jan. 1 through
July 1 through
1936: Jan. 1 through
July 1 through
1937: Jan. 1 through
July 1 through
1938: January
June
Dec.
June
Dec.
June
Dec.
Number
30
31
30
31
30
31
Grand total to Jan. 31, 1938
9
114
983
4,449
15, 646
23, 459
26, 899
4,811
76, 370
1
Does not include 19,671 properties bought in by H. O.
L. C. at foreclosure sale but awaiting expiration of the redemption period before title in absolute fee can be obtained.
In addition to the 76,370 completed cases, 429 properties
were sold at foreclosure sale to parties other than the H. O.
L. C. and 9,437 cases have been withdrawn due to payment
of delinquencies by borrowers after foreclosure proceedings
were authorized.
226
Table 76.—Reconditioning Division—Summary of
all reconditioning operations of H . O . L C.
through Jan. 3 1 , 1 9 3 s 1
June 1,
1934,
through
Jan. 31,
1938
Jan. 1,
1938,
through
Jan. 31,
1938
Cumulative
through
Jan. 31,
1938
8,400
885, 424
Cases received 2
877, 024
Contracts awarded:
7,691
518, 377
510, 686
Number
$97, 120, 358 $1, 912, 093 $99, 032, 451
Amount
Jobs completed:
509, 131
7,931
501, 200
Number
$93, 385, 770 $1, 852, 335 $95, 238, 105
Amount
1
All figures are subject to adjustment. Figures do not
include 52,269 reconditioning jobs, amounting to approximately $6,800,000, completed by the Corporation prior to
the organization of the Reconditioning Division on June 1,
1934.
2
Includes all property management, advance, insurance,
and loan cases referred to the Reconditioning Division which
were not withdrawn prior to preliminary inspection or cost
estimate prior to Apr. 15, 1937.
Federal Home Loan Bank Review
Administrative Rulings, Board Resolutions, and
Counsel's Opinions
Digest of A-B-C Book Opinion
ANY member may obtain from a Federal Home Loan Bank a copy of any administrative ruling, Board resolution, or the complete text of any opinion of the Legal Department of the Board, the digest of which is printed in the REVIEW. "A" indicates
administrative rulings by the Governor; " B " indicates resolutions of the Board; and " C " indicates Counsel's opinions. In
requesting any such copy, its A-B-C Book reference number and date, as given at the end of each of the following digests, should
be cited. Copies of the A-B-C Book itself are not available for distribution.
LOANS—Approval of. Fed. Charter E, Sec. 11;
Fed. Charter K, Sec. 13; Bylaws (1936), Sec. 6.
THE PROTECTION BY SURETY BONDS OF A FEDERAL
ASSOCIATION WITH RESPECT TO THE OPERATION OF ANY
Loans made by a Federal association must be approved
either by the board of directors of such association or by a
person or persons authorized by the board of directors to
approve loans made by such association. Very often the
responsibility for approving loans made by a Federal association has been placed by the board of directors of such association upon either an executive committee created pursuant
to Bylaws (1936) Section 6 (a) or a loan committee created
pursuant to Bylaws (1936) Section 6 (b). Where the directors
of an association have duly authorized a person, persons, or
committee to approve loans made by the association, a supervising official has no legal right to insist upon the approval
of such loans^by the board^of directors of the association.
(A-B-C Book, C-119, November 5, 1937)
SAFE DEPOSIT BUSINESS TRANSACTED BY SUCH ASSOCIATION! Adopted February 16, 1938; effective 30
days from that date.
Be it resolved, That, pursuant to authority vested
in the Federal Home Loan Bank Board by subsection (a) of Section 5 of the Home Owners' Loan Act
of 1933 (12 U. S. C. 1464 (a)), subsection (b) of
Section 12 of the Rules and Regulations for Federal
Savings and Loan Associations is hereby amended
by adding at the end thereof the following:
FIDELITY BONDS.
Fed. Keg. 12; Ins. Reg.
15.
The words "true copy", as used in referring to the copies
of fidelity bonds required to be filed with the Regional Banks
under Section 12 of the Federal Regulations and Section 15
of the Insurance Regulations import an entire copy with all
blanks filled in, including the names of signing officers and
their corporate titles. The copy may be typewritten or may
be a duplicate of the original bond, although a duplicate
original seems preferable. Certification of the copy is not
required by either the Federal Regulations or the Insurance
Regulations.
(A-B-C Book, C-075, November 23, 1937)
ACCOUNTS—Payment by check.
by check. Fed. Charter E, Sees. 6, 11, 12; Fed. Charter K, Sees. 6, 13.
MORTGAGE LOANS—Payment
There is no law or regulation which prevents a Federal
association from making any statement in its share account
or loan account books to the effect that checks and drafts
are received as conditional rather than absolute payment.
Each Federal association should consult its counsel regarding
the necessity and advisability under local law of including
any such statement injits share account or loan account books.
(A-B-C Book, C-106, December 13, 1937)
FED-
E R A L SAVINGS AND LOAN ASSOCIATIONS REGARDING
March 1938
AMENDMENT
TO
RULES
AND
REGULATIONS
FOR
IN-
SURANCE OF ACCOUNTS LIMITING THE BORROWING
POWER OF INSURED INSTITUTIONS : Adopted March 1,
1938; effective April 1, 1938.
The last two sentences of Section 9-A of the Rules
and Regulations for Insurance of Accounts are hereby
amended to read as follows:
No insured institution shall borrow an aggregate amount
exceeding one-half the amount paid in and credited on shares,
share accounts, stock, certificates of deposit and investment
certificates; nor, within such borrowing limit, an amount
aggregating more than one-fifth thereof from sources other
than a Federal Home Loan Bank or a State-chartered central
reserve institution. No action of an insured institution in
obtaining funds through borrowing, in accordance with the
provisions of this section, shall be deemed a violation hereof,
because of a subsequent reduction in the amounts paid in
and credited on shares, share accounts, stock, certificates of
deposit and investment certificates.
A M E N D M E N T TO RULES A N D REGULATIONS FOR
FED-
E R A L SAVINGS AND LOAN ASSOCIATIONS PERMITTING
CHARTER K FEDERAL ASSOCIATIONS TO PURCHASE,
MAKE, AND SELL LOANS INSURED BY THE FEDERAL
Resolutions of the Board
A M E N D M E N T TO R U L E S A N D REGULATIONS FOR
The bond or bonds required by subsection (a) of this
section shall protect the association in a manner and amount
satisfactory to the Board with respect to the operation of
any safe deposit business transacted by such Federal
association.
ADMINISTRATOR: Adopted February 28,
1938; effective immediately.
HOUSING
227
The Board amended Section 39 of the Rules and
Regulations for Federal Savings and Loan Associations by adding a new subsection (d) at the end
thereof to read as follows:
(d) By this subsection the Board approves, from the date
receipt is acknowledged by the Board of each application for
such lending privilege, the loan plans provided by the National Housing Act, as amended, as other loan plans which
Federal associations, operating under a charter in the form of
Exhibit K annexed hereto, are authorized to use under Section
14 of their charter, to the extent of the percentage of the
appraised value the members of the Federal association have
authorized or may authorize loans to be made in an amount
exceeding 75 percent of the value of the home property securing the loan. Thereafter any such Federal association may
originate, purchase and sell, subject to the provisions of Section 42 hereof, any first mortgage loans approved for insurance
protection by the Federal Housing Administrator under the
provisions of Title I or Title II of the National Housing Act,
as amended, and the limitations of these regulations and its
charter as to loans made under any other loan plan shall not
apply thereto. The provisions of Section 5 (c) of Home
Owners' Loan Act of 1933, as now or hereafter amended, shall
apply to loans authorized by this subsection.
This resolution also amended subsection (c) of
Section 41 of the Rules and Regulations for Federal
Savings and Loan Associations by changing the
matter within the parentheses in the next to the last
sentence of paragraph (3) to read as follows:
. . . in no event greater than the percentum of appraised
value permitted to be insured by the Federal Housing Administrator under the National Housing Act, as amended.
AMENDMENT
TO R U L E S A N D REGULATIONS
FOR FED-
E R A L SAVINGS AND LOAN ASSOCIATIONS PERMITTING
FEDERALS TO LEND ON INSURED LOANS UP TO THE
PERCENTAGE OF APPRAISED VALUE PERMITTED UNDER
THE NATIONAL HOUSING ACT, AS AMENDED: A d o p t e d
March 7, 1938; effective immediately.
The first sentence of subsection (b) of Section 39
of the Rules and Regulations for Federal Savings
and Loan Associations was amended by striking the
period at the end thereof and by adding the following:
. . . unless insured under the National Housing Act, as
amended, in whiqh event any percentage of appraised value
permitted under the National Housing Act, as amended, may
be loaned.
AMENDMENT
TO R U L E S A N D REGULATIONS
FOR FED-
E R A L SAVINGS AND LOAN ASSOCIATIONS LIMITING THE
POWERS OF FEDERALS TO SELL AND SERVICE LOANS!
Adopted March 3, 1938; effective immediately.
Be it resolved, T h a t pursuant to authority vested
in the Federal Home Loan Bank Board by subsection (a) of Section 5 of Home Owners' Loan Act
of 1933 (12 U. S. C. 1464(a)), subsection (d) of
Section 42 of the Kules and Eegulations for Federal
228
Savings and Loan Associations is hereby amended
by inserting immediately following the first sentence
thereof the following:
No association shall sell loans in an amount during any
calendar year in excess of 25 percent of the total amount of
loans originated during such period. No association shall
commit itself to service loans not held by it unless originated
by it and in no event in an aggregate amount in excess of its
share capital on the last day of the month next preceding any
service commitment. The limitation upon the sale of loans
may be adjusted in the case of any Federal association upon
application to and approval by the Board, or waived for any
specific transaction for the benefit of any Federal association
by the president of the Federal Home Loan Bank of which it
is a member when such Federal association requires cash for
purposes other than for the making of loans.
PROCEDURE TO BE FOLLOWED BY FEDERAL SAVINGS AND LOAN ASSOCIATIONS IN MAKING APPLICATION TO
THE BOARD FOR LENDING PRIVILEGE
UNDER THE NATIONAL HOUSING ACT
AMENDMENTS OF 1938
CORPORATE PROCEDURE U N D E R R U L E S AND R E G U LATIONS FOR F E D E R A L SAVINGS AND L O A N A S S O CIATIONS
CHAPTER XVI—Federal
Housing
Administration
Loans.
Section 39 (d) of Federal regulations, as amended February
28, 1938, contains the Board's approval of loan plans provided
by the National Housing Act, as amended, as other loan plans
which Federal associations operating under a Charter K are
authorized to use. The last sentence of Section 14 of Charter
K provides that all loans on the security of real estate shall be
made in accordance with Section 14 of Charter K unless the
Board approves another loan plan upon application from the
association for such approval. The Board approval contained
in Section 39 (d) is dependent upon an application from the
association for approval of the use of the loan plans provided
by the National Housing Act. The board of directors are
authorized by Section 6 (g) of the bylaws (1936) to exercise
any and all of the powers of the association not expressly
reserved by the charter to the members. The charter does
not reserve to the members expressly, or even by implication,
the power to determine whether loan plans other than the
20-year amortized loan plan and the 5-year unamortized or
partially amortized loan plan set forth in Section 14 of Charter
K shall be used. The directors, therefore, by proper resolution, may apply, and upon acknowledgment by the Board of
receipt of such application a Charter K association may use,
any of the loan plans providing first mortgage security provided by the National Housing Act, unless the members of the
association have failed to authorize the making of home loans on
a higher percentage of loan to appraised value than 75 percent.
Section 39 (b) of Federal regulations approves the making of
loans in an amount exceeding 75 percent of the value of the
Federal Home Loan Bank Review
security of a home or combination home and business property
when the members of the association at a legal meeting have
authorized such lending. Therefore, if a Charter K association has adopted a resolution in substantially the following
form, the board of directors may properly apply for approval
of the use of the loan plans provided by the National Housing
Act, as amended:
"Resolved, That pursuant to the provisions of Section 39 (b)
of the Rules and Regulations for Federal Savings and Loan
Associations, effective December 1, 1936, the maximum
amount that may be loaned on the security of a home or combination home and business property shall be the maximum
amount fixed by regulations of the Federal Home Loan Bank
Board."
The board of directors of an association whose members
have adopted a resolution in substantially the above form may
apply by adopting the following resolution and filing the same
with the Board through the Federal Home Loan Bank of which
it is a member:
"Resolved, That this association applies to the Federal
Home Loan Bank Board for the approval of the loan plans
provided by the National Housing Act, as amended, as other
loan plans which this association may use."
Upon acknowledgment by the Board of receipt of a certified
copy of such a resolution the loan plans provided by the National Housing Act, as amended, are approved for use by such
an association.
If the members of a Charter K Federal association have not
adopted the foregoing resolution providing that the maximum
amount that may be loaned on the security of a home or combination home and business property shall be the maximum
amount fixed by the regulations of the Board, they should, if
they desire to do so, adopt a resolution in the form quoted
above at a meeting of members (annual or special) and thereupon the directors of the association may adopt the resolution
last quoted above applying for the use of loan plans provided
by the National Housing Act, as amended.
The legal effect of the adoption of both of the above resolutions and filing the same with the Board is, in outline, the
following:
(1) Under the resolution adopted by the members of such
an association, the maximum amount that may be loaned on
the security of a home or combination home and business
property shall be the maximum amount fixed by regulations
of the Board.
(2) Section 39 (d) of Federal regulations makes such maximum the maximum amounts fixed by the National Housing
Act, as amended.
(3) Section 39 (d) of Federal regulations also authorizes
such an association to use all of the loan plans which the
National Housing Act, as amended, provide, including the
25-year loan plan.
(4) If loan's are not insured by the Federal Housing Adminis-
March 1938
tration, the provisions of Section 39 (b) limit the amount that
may be loaned. Such regulation provides as the maximum
amount 80 percent of the appraised value of home or combination home and business property.
If the directors of the association apply for the use of the
loan plans provided by the National Housing Act, as amended,
but the members of the association have not adopted, as
permitted by Section 13 of Charter K, a resolution authorizing
loans of a higher percentage than 75 percent of the appraised
value of the home or combination home and business property
securing the loan, loans insured by the Federal Housing
Administration may still be made (including 25-year loans) but
they may not exceed 75 percent of the appraised value of the
home property securing the loan.
The members of some associations have authorized home
loans to be made in excess of 75 percent but not in excess of
80 percent of the appraised value of the home property
securing the loan. In such cases, after the directors of the
association have applied for the use of Federal Housing
Administration loan plans, such plans may be used but the
percentage that may be loaned may not exceed 80 percent
until the members have authorized such loans up to the
maximum amount permitted by regulations of the Board.
The limitations and restrictions contained in Section 5 (c)
of Home Owners' Loan Act of 1933, as amended, continue in
full force and effect so that loans insured by the Federal
Housing Administration, regardless of the percentage of the
loan to appraised value, are still limited (except as to the 15
percent of assets lending power) to loans on 1- to 4-family
home properties within 50 miles from the home office, and to a
maximum amount of $20,000 for any one such home loan.
If a Charter K Federal association desires to make Federal
Housing Administration insured loans it should immediately
determine:
(a) Whether the members have authorized loans up to the
maximum amount which the regulations of the Board permit,
that is, up to the percentages of appraised value authorized
under the National Housing Act, as amended. If the
members have passed such a resolution and the same has been
filed with the Board each type of Federal Housing Administration loan may legally be made by such an association provided
the directors apply in the manner herein provided for the use
of the loan plans provided by the National Housing Act, as
amended. If the members have not so authorized higher
percentage home loans, the members should adopt such a
resolution at an annual or special meeting and file the same
with the Board.
(b) The directors of the association should adopt a resolution applying for the loan plans provided by the National
Housing Act, as amended, and a certified copy of such
resolution should be filed with the Board through the Federal
Home Loan Bank of which the association is a member and
obtain acknowledgment of receipt thereof by the Board.
229
Directory of Member, Federal, and
Insured Institutions
Added during January-February
I. INSTITUTIONS ADMITTED TO MEMBERSHIP IN
T H E FEDERAL HOME LOAN BANK SYSTEM BETWEEN JANUARY 16, 1938, AND FEBRUARY 15,
1938
[Listed by Federal Home Loan Bank Districts, States, and cities]
DISTRICT NO. 1
MASSACHUSETTS:
Athol:
Athol Co-operative Bank, 90 Exchange Street.
Norwood:
Norwood Co-operative Bank, 675 "Washington Street.
D I S T R I C T NO. 3
PENNSYLVANIA:
Philadelphia:
Gromac Building & Loan Association, 1700 Sanson Street.
DISTRICT NO. 4
FLORIDA:
Jacksonville *
Peninsular Life Insurance Company, Corner Forsyth & Julia Streets.
GEORGIA:
Atlanta:
Industrial Life & Health Insurance Company, 573 Peachtree Street, West.
MARYLAND:
Baltimore:
J. F. Wiessner Building Association of Baltimore City, 1617 East Federal
Street.
DISTRICT NO. 5
KENTUCKY:
Anchorage:
Kentucky Central Life & Accident Insurance Company.
TENNESSEE:
Chattanooga:
Inter-State Life & Accident Company, 540 McCallie Avenue.
D I S T R I C T NO. 6
INDIANA:
Franklin:
Franklin Building & Loan Association.
Terre Haute:
Lincoln Savings & Loan Association, 30 South Sixth Street.
MICHIGAN:
Grand Rapids:
Grand Rapids Mutual Federal Savings & Loan Association, 201 Monroe Avenue (converted from Grand Rapids Mutual Building & Loan
Association).
West Side Federal Savings & Loan Association of Grand Rapids, 410
Bridge Street, Northwest (converted from West Side Building & Loan
Association).
D I S T R I C T NO. 9
TEXAS:
Houston:
Houston First Federal Savings & Loan Association, 1107 Main Street
(converted from Houston Building &, Loan Association).
D I S T R I C T NO. 12
ARIZONA:
Phoenix:
Phoenix Federal Savings & Loan Association, 116 North First Avenue
(converted from State Building & Loan Association).
CANCELATIONS OF FEDERAL
TION CHARTERS BETWEEN
RUARY 15, 1938
ILLINOIS:
Ottawa*
Home Federal Savings & Loan Association of Ottawa, Moloney Building (merger with Ottawa Federal Savings & Loan Association, Ottawa,
Illinois).
III. INSTITUTIONS INSURED BY THE FEDERAL
SAVINGS AND LOAN INSURANCE CORPORATION
BETWEEN JANUARY 16, 1938, AND FEBRUARY 15,
1938
D I S T R I C T NO. 2
N E W JERSEY:
East Orange:
Lackawanna Building & Loan Association, 62 Hedden Place.
Triumph Building & Loan Association of East Orange, New Jersey,
231 North Eighteenth Street.
Paterson:
Financial-Regent Building & Loan Association, 5 Colt Street.
N E W YORK:
Jackson Heights:
Jackson Heights Savings & Loan Association, 83-20 Roosevelt Avenue
D I S T R I C T NO. 3
PENNSYLVANIA:
Beaver Falls:
Dime Savings & Loan Association, 1027 Seventh Avenue.
D I S T R I C T NO. 7
ILLINOIS:
Peoria:
Workingmen's Loan & Homestead Association, Alliance Life Building.
DISTRICT NO. 10
D I S T R I C T NO. 4
MARYLAND:
Baltimore:
Hearthstone Building & Loan Association of Baltimore City, Incorporated, 305 East North Avenue.
COLORADO:
Pueblo:
Railway Building & Loan Association, 119 West Fifth Street.
WITHDRAWALS FROM THE FEDERAL HOME LOAN BANK SYSTEM BETWEEN JANUARY 16, 1938, AND FEBRUARY 15,
1938
D I S T R I C T NO. 6
INDIANA:
Franklin:
First Federal Savings & Loan Association of Franklin.
Lawrenceburg:
Dearborn County Loan & Building Association, 25 East High Street.
Terre Haute:
Lincoln Savings & Loan Association, 30 South Sixth Street.
MICHIGAN:
ILLINOIS:
Chicago:
Jefferson Park Building <fe Loan Association, 4841 Milwaukee Avenue
(voluntary withdrawal).
Grand Rapids:
West Side Federal Savings & Loan Association of Grand Rapids, 410
Bridge Street, N . W.
LOUISIANA:
New Orleans:
Italian Homestead Association, 126 Baronne Street (sale of assets to
Sixth District Building & Loan Association, New Orleans, Louisiana).
MARYLAND:
Baltimore:
Hillen Building Association, Incorporated, 2720 Pennsylvania Avenue
(voluntary withdrawal).
Lincoln Highway Permanent Building & Loan Association, Incorporated, Corner Belair Road & Maple Avenue (voluntary withdrawal).
N E W JERSEY:
Paterson:
American Building & Loan Association, 5 Colt Street (voluntary withdrawal).
Regent Building & Loan Association, 1751 Market Street (merger with
Financial Building & Loan Association, Paterson, New Jersey).
II. FEDERAL SAVINGS AND LOAN ASSOCIATIONS
CHARTERED BETWEEN JANUARY 16, 1938, AND
FEBRUARY 15, 1938
D I S T R I C T NO. 7
ILLINOIS:
Chicago:
Central Building & Loan Association of Chicago, 77 West Washington
Street.
Republic Building & Loan Association, 5348 South Kedzie Avenue.
Des Plaines:
Des Plaines State Building <& Loan Association, 721 Pearson Street.
D I S T R I C T NO. 8
MINNESOTA:
Bemidji:
Bemidji Building & Loan Association, 219 Fourth Street.
D I S T R I C T NO. 10
COLORADO:
Pueblo:
Railway Building & Loan Association, 119 West Fifth Street.
KANSAS:
Wichita:
Southwest Building & Loan Association, 109 North Topeka Avenue.
D I S T R I C T NO. 6
INDIANA:
Franklin:
First Federal Savings & Loan Association of Franklin (converted from
Franklin Building & Loan Association).
i After merger, name changed from Financial Building & Loan Association to
Financial-Regent Building & Loan Association.
230
SAVINGS AND LOAN ASSOCIAJANUARY 16, 1938, AND F E B -
D I S T R I C T NO. 12
CALIFORNIA:
Hemet:
Hemet Federal Savings & Loan Association, 410 East Florida Avenue.
Los Angeles:
Liberty Building-Loan Association, 2512 South Central Avenue.
Los Angeles American Building & Loan Association, 5101 York Boulevard.
Federal Home Loan Bank Review
U. S. GOVERNMENT PRINTING OFFICE: 1938
FEDERAL HOME LOAN BANK DISTRICTS
— — BOUNDARIES OF FEDERAL HOME LOAN BANK (DISTRICTS
Q FEDERAL HOME LOAN BANK CITIES.
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
CHICAGO
B. J. ROTHWELL, Chairman; E. H. WEEKS, Vice Chairman; W. H.
NEAVES, President; H. N. FAULKNER, Vice President; FREDERICK
WIN ANT, JR., Treasurer; L. E. DONOVAN, Secretary; P. A. HENDRICK,
Counsel.
MORTON BODFISH, Vice Chairman; A. R. GARDNER, President; JOHN
NEW
BARDWICK, JR., Vice President; E. H. BURGESS, Treasurer; CONSTANCE M. WRIGHT, Secretary; LAURETTA QUAM, Assistant Treasurer
UNGARO & SHERWOOD, Counsel.
YORK
GEORGE MACDONALD, Chairman; F. V. D. LLOYD, Vice Chairman;
G. L. BLISS, President; F. G. STICKEL, JR., Vice President-General
Counsel; ROBERT G. CLARK SON, Vice President-Secretary; DENTON
C. LYON, Treasurer.
DES
MOINES
C. B. BOBBINS, Chairman; E. J. RUSSELL, Vice Chairman; R. J. RICHARDSON, President-Secretary; W. H. LOHMWN, Vice President-Treasurer;
J. M. MARTIN, Assistant Secretary; A. E. MUELLER, Assistant
Treasurer; E. S. TESDELL, Counsel.
PITTSBURGH
E. T. TRIGG, Chairman; C. S. TIPPETTS, Vice Chairman; R. H. RICHARDS, President; G. R. PARKER, Vice President; H. H. GABBER,
Secretary-Treasurer; R. A. CUNNINGHAM, Counsel.
LITTLE ROCK
J. GILBERT LEIGH, Chairman; W. C. JONES, JR., Vice Chairman;
B. H. WOOTEN, President; H. D. WALLACE, Vice President; W. F.
TARVIN, Treasurer; J. C. CONWAY, Secretary; W. H. CLARK, JR.,
CounseL
WINSTON-SALEM
TOPEKA
G. W. WEST, Chairman; E. C. BALTZ, Vice Chairman; O. K. LAROQUE,
President-Secretary; G. E. WALSTON, Vice President-Treasurer;
W. R. MCWILLIAMS, Chairman; G. E. MCKINNIS, Vice Chairman;
C. A. STERLING, President-Secretary; R. H. BURTON, Vice PresidentTreasurer; JOHN S. DEAN, JR., General Counsel.
Jos. W. HOLT, Assistant Secretary; RATCLIFFE, HUDSON & FERRELL,
Counsel.
CINCINNATI
T. H. TANGEMAN, Chairman; W. D . SHULTZ, President; W. E. JULIUS,
Vice President; A. L. MADDOX, Treasurer; DWIGHT WEBB, JR.,
Secretary; TAFT, STETTINIUS & HOLLISTER, General Counsel.
PORTLAND
F. S. MCWILLIAMS, Chairman; B. H. HAZEN, Vice Chairman; F. H
JOHNSON, President-Secretary; IRVING BOGARDUS, Vice PresidentTreasurer; Mrs. E. M. SOOYSMITH, Assistant Secretary.
Los ANGELES
INDIANAPOLIS
F. S. CANNON, Chairman-Vice President; S. R. LIGHT, Vice Chairman;
C. H. WADE, Chairman; D. G. DAVIS, Vice Chairman; M. M. HURFORD, President; C. E. BERRY, Vice President; F. C. NOON, Secretary-
FRED T. GREENE, President; B. F. BURTLESS, Secretary-Treasurer;
Treasurer; VIVIAN SIMPSON, Assistant Secretary; RICHARD FITZ-
JONES, HAMMOND, BUSCHMANN & GARDNER, Counsel.
PATRICK, General Counsel.
@FedFRASER