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FEDERAL
HOME
LOAN
BANK
Washinston, November 1941
FEDERAL
H O M i
LOAN
BANK
BOARD
CONTENTS
FOR NOVEMBER
1941
ARTICLES
FEDERAL
HOME
SAVINGS AND L O A N F I N A N C I N G O F D E F E N S E H O U S I N G O P E N S U P A N E W V I S T A .
Construction under t h e Registered H o m e Service—Lay-out a n d construction features—Advantages of large-scale operation—Joint financing b y savings a n d loan associations—Pointing toward t h e future.
P R I O R I T Y C E I L I N G S F O C U S A T T E N T I O N ON D E S I G N S F O R L O W - C O S T H O U S E S .
.
MORTGAGE INVESTMENTS B Y L I F E INSURANCE COMPANIES INCREASE
BANK
R E G I O N A L VARIATIONS I N B U I L D I N G M A T E R I A L P R I C E S
45
New lending activities during 1940—Mortgage-loan investments exceed
$6,000,000,000—Mortgage holdings in relation to t o t a l assets—Decline in
real-estate holdings.
48
T N E C survey—Geographical influences—The importance of t r a n s p o r t a t i o n — T h e spread between wholesale a n d retail prices.
REVIEW
MONTHLY
SURVEY
Highlights a n d s u m m a r y
53
General business conditions
,
Residential construction
Published Monthly by the
FEDERAL HOME LOAN
BANK BOARD
John H. Fahey, Chairman
T, D. Webb, Vice Chairman
F. W, Catiett
W. H. Husband
F, W. Hancock, Jr.
FEDERAL HOME LOAN
BANK SYSTEM
FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
54
55
New mortgage-lending activity of savings a n d loan associations
56
Mortgage recordings
56
Foreclosures
56
Federal Savings a n d Loan Insurance Corporation
57
Federal savings a n d loan associations
57
Federal H o m e Loan Bank System
57
No. 2
TABLES
New family dwelling units—Building costs—Savings a n d loan lending—Mortgage
recordings—Total nonfarm foreclosures—HOLC properties—Insured savings
a n d loan associations—Federal H o m e Loan Bank advances—Government investments in savings a n d loan associations—Private long-term savings . . . 58-67
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
HOME OWNERS' LOAN
CORPORATION
54
Building costs
STATISTICAL
Vol. 8
42
A source of information for loan prospects—A reservoir of low-cost
house plans—Sample plans.
LOAN
urn'
Page
38
REPORTS
F r o m t h e m o n t h ' s news
Directory of member, Federal, a n d insured institutions added during SeptemberOctober
44
A p p o i n t m e n t of Public Interest Directors
51
Resolutions of t h e Board
51
50
SUBSCRIPTION PRICE OF REVIEW. The FEDERAL HOME LOAN BANK REVIEW is the Board's medium of communication with member institutions of the Fed eral Home Loan Bank System and is the only official organ or periodical publication of the Board. The REVIEW will be sent to all member institutions without charge.
To others the annual subscription price, which covers the cost of paper and printing, is $1. Single copies will be sold at 10 cents. Outside of the United States, Canada,
Mexico, and the insular possessions, subscription price is $1.60; single copies, 15 cents. Subscriptions should be sent to and copies ordered from Superintendent of Documents, Government Printing Office, Washington, D. C.
APPROVED BY T H E BUREAU OF T H E B U D G E T .
423820—41
1
SAVINGS AND LOAN FINANCING OF DEFENSE
HOUSING OPENS UP A NEW VISTA
A private housing project near Boston, one of the main centers of
defense activity, is noteworthy because the entire development has
been certified under the Registered Home Service and because it is
financed jointly by a group of savings and loan associations. This
method of financing, combined with the protective features of the
Registered Home Service, is brought to the attention of executives for
it may be an important vehicle in the future development of their
construction-lending business.
•
D E F E N S E housing, although motivated by the
emergency needs of the hour, may in many ways
point toward new and lasting developments in the
home construction field. This was illustrated in the
September issue of the R E V I E W which described the
Government-sponsored defense housing project in
Indian Head, Maryland, as a "proving ground for
new ideas in construction." Large-scale experimentation with technical innovations, such as prefabrication and demountability, was the principal
feature observed in Indian Head. That the special
conditions created by defense housing needs may
likewise open up new possibilities in the field of
private construction financing, is demonstrated by
the Bradley Woods housing project in Hingham,
Massachusetts.
This small-home development, located near Boston, is one of the many projects financed by savings
and loan associations in areas of concentrated armament activity and is designed to relieve the housing
shortage resulting from the rapid increase in working
38
population. However, apart from its contribution
to defense housing, and in addition to other qualities
that make it an outstanding example of good
suburban community building, Bradley Woods distinguishes itself by two important elements: The
entire project has been approved and certified
under the Federal Home Loan Bank Board's Registered Home Service which operates under the
auspices of the Federal Home Loan Banks, and it
has been financed jointly by a group of 7 Massachusetts savings and loan associations. These two
elements give the Bradley Woods development more
than local significance.
CONSTRUCTION
UNDER THE
SERVICE
REGISTERED
HOME
Bradley Woods is the first large operative-bvilt
home development constructed under the safeguards
of the Registered Home Service. This Service, as
R E V I E W readers know, is offered by member savings
Federal Home Loan Bank Review
and loan associations in cooperation with local
architects to assure good design and planning as well
as the use of proper building materials and dependable construction supervision.
Designs and specifications for the entire Bradley
Woods project were approved for registration under
the Service before construction was begun. A
competent architect, agreed upon by the developer
and the participating lending institutions and
approved by the Federal Home Loan Bank Board,
then supervised the actual erection of the houses.
Every one of the 100 homes now completed has been
registered by the Bank Board, and as each house is
sold, the owner receives a certificate of registration—
testimony that the home has met the rigid standards
and requirements of the Service.
Since Bradley Woods was the first project of its
kind to be certified under the Registered Home
Service, an unusual opportunity was afforded to
publicize this Service as a distinctive merchandising
feature of participating savings and loan associations.
This promotional campaign will undoubtedly be of
value to all institutions in this area operating under
the Registered Home Service.
L A Y - O U T AND CONSTRUCTION FEATURES
Designed eventually to cover over 70 acres, the
Bradley Woods development is located about 17
miles from Boston, 4 miles from Quincy, and 3 miles
from the Fore River Shipyard—in brief, in an area
which is teeming with industrial activity for defense
purposes. The housing demand accompanying this
activity prompted the conversion of this attractive
stretch of wooded land into a suburban community
of single-family dwellings. Possibly, in the future,
some multifamily houses of the garden apartment
November 1941
type will be added. Great care has been taken to
look beyond the immediate defense need, however,
and to develop a high-grade subdivision which will
be desirable long after the defense boom has come to
an end.
The building site is near a highway connecting the
South Shore of Boston Bay with the City. This
affords excellent transportation facilities by bus and
automobile, yet the project is enough removed from
through traffic to assure tranquillity and protection
from traffic hazards. At present, the development
covers about 24 landscaped acres through which
curving streets have been laid out to follow natural
contours and to avoid sharp right-angle intersections.
All of the houses are built in Cape Cod style and
are designed on the same basic 6-room floor plan,
which permitted, of course, numerous economies in
construction costs. At the same time, each house is
distinctively original in exterior treatment. And yet,
artistic unity is accomplished, among other things,
by the unusual feature of carrying over the predominant color of one house into the trim of the one next
door.
Lots are carefully planned and vary between 6,500
and 14,000 square feet. Foundations are of poured
concrete, and the clapboard walls as well as the roofs
are insulated. A garage with overhead doors is
attached to each house. Full basements provide
ample space for recreation rooms. Automatic oil
heat, a downstairs lavatory, and seven closets are
other noteworthy appointments in each house. The
39
interior equipment is attractive and in line with the
requirements of modern living.
ADVANTAGES OF LARGE-SCALE OPERATION
Sales prices for Bradley Woods homes range from
$6,000 to $7,000 for 6-room dwellings, and some of
the houses are being rented for $60 per month.
While beyond the reach of the average defense
worker, these homes appeal to the large number of
skilled and salaried employees in the defense industries around Boston and should, directly and indirectly, help to overcome the serious housing shortage
in this area.
In spite of the exclusive use of high-quality materials, sales prices could be kept within moderate
limits by the use of fundamentally similar designs
and by large-scale operation. Simultaneous erection
of about 100 homes enabled the developer to reap
the benefits of what may be called "production
line" construction in the home building field. Basements were cut by one crew, moving from one site
to the next. Foundations were poured the same way.
Lumber was cut on the site. To avoid waste and
delays which so frequently boost costs in building
operations, great care was taken to make certain
that all materials were on hand when needed. Skilled
labor was organized in specialized crews which moved
from one house to the other doing the same type of
work. In addition, prefabricated units were used
widely in plumbing and heating equipment, including
piping.
All participating institutions were, of course, called
upon to agree on the general lay-out and design for
the project as well as on the general plan for financing, with the Federal Home Loan Bank of Boston
taking an active interest which helped a great deal
to secure speedy and coordinated action.
Money disbursements during construction were
allocated among the participating associations but
were handled exclusively by one institution which
acted in a capacity similar to that of a constructionloan manager, within the framework of established
construction-loan procedure. The "managing" institution undertook weekly inspections in addition
to the architect's regular construction reports, and
periodically informed the other participants on the
progress made.
For the final financing, the individual mortgages
are being apportioned among the 7 associations
according to a predetermined schedule; since Bradley
Woods is a well planned, protected, and integrated
subdivision, and since each home is of fundamentally
similar design and built in one process of the same
materials, there can be no significant difference in
the physical security underlying each final mortgage loan. These loans are of the direct-reduction
type, run 20 years, and bear interest at 5 percent.
J O I N T FINANCING BY SAVINGS AND LOAN
ASSOCIATIONS
In view of the contemplated eventual size of the
project, 7 Massachusetts savings and loan associations^—all of them Federals—banded together in the
financing of Bradley Woods. While such joint
financing is not entirely novel in the history of
savings and loan associations, the technique employed in this case will be of interest to savings
and loan executives elsewhere.
POINTING TOWARD THE F U T U R E
The significance of Bradley Woods lies in the
possibilities which it indicates for the future construction-lending business of savings and loan associations. I t is a matter of common knowledge that
" tailor-made" construction of one or a few homes is
more and more being superseded by larger, operativebuilt developments, especially in the metropolitan
Federal Home Loan Bank Review
areas which are responsible for an increasingly great
proportion of total residential building activity.
Adaptation of the financing mechanism to this
large-scale method of home construction will probably be one of the major problems to be met by
aggressive management in the years to come, if
savings and loan associations are to maintain and improve their traditional position in the constructionlending field.
Joint financing by groups of associations, under
the constructive guidance of the Federal Home
Loan Banks, may be one of the answers. Joint
least in regard to the real-estate security as such.
Bradley Woods has demonstrated the feasibility
and practicability of applying the Registered Home
Service to this type of operation, and if its lessons
are heeded, this development may open up a new
and important phase in savings and loan financing
of construction.
Series E Collateral Requirement Is
Waived for Insured Associations
•
financing would make it possible for savings and
loan associations to compete successfully with other
types of mortgage-lending institutions which operate
in larger units and which have, therefore, larger
funds available for one single construction project;
and yet it would assure diversification of a risk that
would be too heavy for any individual association to
undertake.
At the same time, the safeguards provided by the
Registered Home Service will help to place this type
of construction financing on a sounder basis and to
avoid hazards experienced in the past when savings
and loan associations entered into the financing of
larger, operative-built developments. These hazards
have caused many association executives and directors to refrain from investments in construction
projects of this kind.
The protection afforded by architectural planning
in design and building specifications and by a careful
procedure in construction supervision should go a
long way toward making mortgage investments in
large-scale projects as shock-proof as possible, at
November 1941
I T is no longer necessary for associations insured
by the Federal Savings and Loan Insurance
Corporation to pledge collateral security when
handling the sale of Series E defense savings bonds.
This important change in the regulations governing
distribution of the bonds was recently announced
by the Treasury and will affect both Federal and
State-chartered institutions which are insured by
theFSLIC.
In order to take advantage of this privilege, an
association is required to file Form #384-A with the
Federal Reserve Bank of the District in which it
is located. The aggregate amount of stock of Series
E that may be maintained at any one time is limited
to 50 percent of an institution's general reserves and
undivided profits, or $50,000, whichever is smaller,
according to a recently released interpretation of
the new regulation.
The Federal Home Loan Bank Board has also been
advised by the Towner Rating Bureau of substantial
reductions in premium charges on the Bankers'
Blanket Bonds and Fidelity Bonds. These rate
changes, which will apply to all savings and loan
associations, were effective on September 1, 1941
and should result in savings of from 20 to 25 percent
of the former premiums.
41
PRIORITY CEILINGS FOCUS ATTENTION ON
DESIGNS FOR LOW-COST HOUSES
The $6,000 ceiling on the value of homes in defense areas eligible
for priority ratings on critical materials has awakened a new interest
in small, low-cost dwellings. With lending opportunities restricted
largely to homes of this type, association executives are now seeking
well-designed plans and an adequate construction-loan procedure to
safeguard mortgage investments in these defense homes.
•
T H E establishment of a $6,000 ceiling for priority assistance on new homes is already having an adverse effect upon the construction of any
dwellings above this limit. This in turn will result
in reduced opportunities for many savings and loan
associations to finance the construction of homes at
prices above this level.
Reports coming from institutions throughout the
country indicate a new and active interest in small,
low-cost houses which can be built under existing
regulations and which will accomplish the dual purpose of satisfying defense housing needs and providing an outlet for available lending funds. The experience of these associations and others operating
in the small-home field, however, has demonstrated
that only an organization with complete servicing
facilities can command a leading role in the financing
of low-cost dwellings.
A
SOURCE
OF INFORMATION
FOR LOAN
PROSPECTS
The role of savings and loan associations as a
primary source of information about home construction and home purchase has often been discussed in
the pages of the R E V I E W , 1 and today, more than ever
before, these facilities become the stepping stones
to new prospects for mortgage-loan accounts.
Well-informed association executives with adequate
information at their fingertips will be able to convey
to their prospects comprehensive data about priorities, construction costs, and the availability of labor
and materials—questions which add to the present
hesitancy of many individuals.
Potential borrowers who come to association
offices have the desire for building a house, b u t few
have the designs and floor plans which will transform their nebulous ideas into an attractive and
i See: "Recent Changes in the Operation of the Registered Home Service,"
p. 298, June 1941; "The Home-Construction Exhibit—A Public Service," p. 221,
April 1940; "Model Homes Attract Loan Prospects," p. 8, October 1939.
42
serviceable home. Savings and loan managers,
therefore, have a perfect opportunity to demonstrate
the facilities of their institutions by supplying
suggested plans and designs.
A
RESERVOIR
OF L O W - C O S T H O U S E
PLANS
Member associations of the Federal Home Loan
Bank System have access to a wealth of more than
500 architect-designed and approved plans included
in the small-home portfolio of the Registered Home
Service. Information about the opportunities under
the Registered Home Service may be obtained from
any of the 12 Federal Home Loan Banks. I t
offers a carefully developed and thoroughly tested
promotional medium for reaching loan prospects
and then convincing them on the facilities of the
Service. Each of the house designs approved for
use under this plan has been considered primarily
for its merits in providing adequate housing accommodations for its owner, and at the same time
safeguarding the interests of both mortgagee and
mortgagor by establishing construction standards
which will protect the basic security in the dwelling.
SAMPLE
PLANS
As evidenced by the two plans illustrated on the
facing page, a large majority of these designs are
"made-to-order" for the requirements of presentday limitations on construction costs. Indicative
of this is the compact arrangement of plumbing
equipment by placing the kitchen and bathroom
back to back.
Each house contains about 12,000 cubic feet and
could be built in almost any section of the country
at prices well below the limit for priority assistance.
Floor heaters may be used to conserve on the strategic
materials used in heating equipment. The relation
of rooms to each other is logical and convenient and
each is afforded good light and ventilation.
Federal Home Loan Bank Review
S^n
P I N . «LM-
- L W I N Q JLM-
mi
i
CUBIC FEET
11,830
This compact and inexpensive 5-room house illustrates the possibilities of a small
house when proper consideration is given to functional arrangement and architectural
quality. The design for this house is especially adapted to a narrow lot, yet avoids
any sense of being cramped. Its simple rectangular form and partition
arrangement
are economical to construct.
APPROVED FOR USE UNDER
THE REGISTERED HOME SERVICE
CUBIC FEET
House
8,400
Basement
4,400
Total
12,800
The white clapboard house with brown or green roof and green slat shutters has
been the most popular exterior style of architecture in America for nearly 200 years.
This low-cost home, although small, bears the dignity and good taste of more costly
structures. All rooms rotate around a small central hall and have cross ventilation
and adequate furniture space.
November 1941
43
«
FROM THE MONTH'S NEWS
«
»
»
»
Mortgage business curtailed.
CHRISTMAS BONUS:
"The
kind
of
spending t h a t t h e Treasury is most
anxious to divert into defense savings
bonds is t h e spending produced by p a y
increases a n d bonuses, a n d by increased
dividend p a y m e n t s . I should like to
offer as a suggestion, for example, t h a t
every Christmas bonus in t h e United
States be paid in defense savings bonds
or stamps this y e a r . "
T h e H o n o r a b l e H e n r y A.
Morgenthau, Jr., Secretary of
the Treasury, Oct. 2, 1941.
POST-WAR BUILDING: " I n t h e minds of
those who have t h e vision and courage to
look forward to t h e post-war future, t h e
role which m u s t be played by Building
looms large a n d important—larger even
t h a n Building's gigantic role in t h e defense p r o g r a m . "
The Architectural Forum, September 1941.
COOPERATION: " U p o n our business
and industrial structure, as upon *our
labor skills and energies, now rests a
tremendous obligation—that of m a k i n g
t h e production m e t h o d s of democracy
more powerful t h a n those of any regim e n t e d or compulsory system. M a n agement, labor, a n d Government m u s t
cooperate to a greater extent t h a n ever
before . . . "
"From your point of view this means that mortgage business will
continue to be done in this country and that the defense program is
not going to put you out of business. At the same time, I must tell
you bluntly that you face sacrifices. The mortgage business is going
to be curtailed. These defense homes cannot exceed $6,000 in value
and must be built in defense areas for defense families. You cannot
expect "business as usual" under these conditions. But we cannot
build America's defenses unless we all make sacrifices, and, in the
housing field, this means that all our energies must be devoted to
housing essential for defense."
Charles F. Palmer, Coordinator of
Defense Housing, before the Mortgage Bankers Association of America, Oct, 3, 1941.
Blessing in disguise.
". . . one of the chief causes of financial embarrassment is that
of growing too fast. Fortunately there is still time to improve your
reserve position, and as far as the savings and loan business is concerned, the defense program may prove to be a blessing in disguise.
Even here in a defense area, it is just a matter of time before you will
be compelled to limit your volume of loans. By slowing up the
volume of new business you will then have time to solidify your
position and to prepare for the inevitable adjustments which lie
ahead."
Dr. W. H. Husband, member Federal Home Loan Bank Board,
before The Cuyahoga County Savings and Loan League, October
1941.
Sidney Hillman, Employment
Security Review, August 1941.
EQUIPMENT: " O n e of t h e most i m p o r t a n t
factors in influencing a borrower's willingness to keep up his mortgage p a y m e n t s ,
is t h e operating equipment in t h e p r o p erty because of t h e comfort, satisfaction,
service and pleasure it represents."
Donald K. Vanneman, The
Mortgage Banker, Aug. 1,1941.
CHALLENGE: " M o d e r n changes in business, in its size a n d methods, do not
prevent business m a n a g e m e n t from keeping alive all t h e old relationships of
customer a n d c o m m u n i t y storekeeper.
These changes are only a challenge to
business m a n a g e m e n t , a challenge to
discover ways in which it can reestablish
these relationships. T h e opening a n d
closing of accounts by customers presents
m a n a g e m e n t with good o p p o r t u n i t y for
such an effort."
Savings and Loans, September, 1941.
The trend in living costs for the families of wage earners and clerical workers has been steadily upward since late in 1940, as evidenced by the chart above. The cost of living for these families is now almost
8 percent higher than at the outbreak of the European War in the Fall of 1939.
In recent months food and clothing costs have shown the greatest advance, but rents, coal, house furnishings, automobile tires and tubes have also been rising in all parts of the country.
Labor Information Bulletin,
September 1941.
Federal Home Loan Bank Review
MORTGAGE INVESTMENTS BY LIFE INSURANCE
COMPANIES INCREASE
The annual study of life insurance company investments discloses a
continuous emphasis on real estate /oons, with preference for small
home mortgages. However, mortgage investments still hold a less
important position in total life insurance assets than during the late
20's. Despite some reduction in 1940, real estate holdings are
substantial, particularly in farm and commercial properties.
•
L I F E insurance companies continued during
1940 to channel a growing proportion of their
new investments into mortgage loans, according to
the annual study of life insurance company investments by the Division of Research and Statistics. 1
In the face of declining returns on other types of
investments and under the stimulus of increased
building and real estate activity as well as F H A
mortgage insurance, life insurance executives in
recent years have once more turned to real estate
loans as a desirable investment outlet. Despite
this comeback, mortgage holdings of life insurance
companies are still far below the peak volume of 1931
which was over $7,700,000,000, although total assets
have increased $10,000,000,000 in the meantime.
As a result of intensified mortgage investment
activity during 1940, the relative importance of real
estate loans in the assets of life insurance companies
increased this year for the first time since 1929. In
that year, mortgage securities comprised 42 percent
of all life insurance company assets. In subsequent
years, debt liquidation and foreclosures more than
offset new investments of this type, the more so since
the companies had practically withdrawn from new
lending on mortgage security. The ratio of mortgage loans to total assets declined continually until it
reached 19.3 percent in 1939. Last year, this ratio
increased to 19.5 percent, and although this is but a
small percentage gain, it represents a net increment
of $346,000,000 which brought the mortgage loans
outstanding at the end of 1940 up to $6,000,000,000.
N E W L E N D I N G ACTIVITY D U R I N G
1940
Life insurance companies invested $4,100,000,000
during 1940—an indication of the tremendous importance of this type of institution as a source of
1
Questionnaires were returned by 94 companies having about 97 percent of all
life insurance company resources.
November 1941
423820—41
2
investment funds. Of this total, $913,000,000, or
22.3 percent, was used in the writing and purchase of
mortgage securities. In 1939, the mortgage investment of $826,000,000 comprised 22.1 percent of
total new investments in the amount of $3,731,000,000. More striking is a comparison with the low of
1934 when life insurance companies advanced only
$55,000,000 on mortgage security—a mere 2.6 percent of their aggregate new investment during that
year.
Mortgage loans on 1- to 4-family homes are now
responsible for close to one-half of the life insurance
funds invested in real estate loans. The increasing
emphasis which is being placed on this type of
mortgage security is discernable in the following
figures: In 1936, only 33 percent of total new
mortgage investments was on this class of property;
in 1938, 38.3 percent; and last year, 46.3 percent.
I t is interesting to note that loans on both farm
mortgages and nonfarm properties, other than small
homes, are declining as investments in 1- to 4-family
home mortgages increase. In 1939, 14.7 percent of
total mortgage investment funds was disbursed on
farm mortgages while 42.8 percent was used in the
acquisition of instruments secured by commercial
and multifamily nonfarm properties. Last year
loans of the latter category made up 40 percent of the
aggregate, and farm loans, 13.7 percent.
Life insurance companies depended more on their
correspondents for the origination of mortgage loans
in 1940 than they had for several years. More loans
were handled in this manner than were purchased
from other mortgagees, a reversal of the practice the
companies have followed before. In percentage
terms, 15 percent of all new mortgages were written
in correspondents' names this year as against 9
percent in 1939, while instruments purchased from
other mortgagees maintained the same relation to the
total as -last year—13 percent. As usual, about
45
three-quarters of all new loans were written in the
companies' names.
In the case of home mortgage loans, however, the
proportion of mortgages written in the companies'
names was much smaller and showed a tendency to
decline. During 1940, home mortgages in the
amount of $230,200,000 were handled in this manner—55 percent of the total compared with 63 percent the year before. Another $94,000,000, or 22
percent of the total, was handled by correspondents.
Purchases from other sources originating the loans
aggregated $98,000,000, or 23 percent of the new
investment in home mortgages during the year.
MORTGAGE LOAN INVESTMENTS E X C E E D
$6,000,000,000
Real estate loans held by life insurance companies
showed a net gain from $5,654,000,000 to $6,006,000,000 during 1940. Of this latter amount, mortgages on residential structures accounted for 48 percent. Mortgage loans on other nonfarm properties
were responsible for 37 percent. The remainder was
made up by farm mortgages.
The only category to show any substantial gain
during last year was the residential mortgage loan.
Outstanding investments of this type totaled $2,887,000,000 at the end of 1940. Reflecting the preference for 1- to 4-family dwellings in new lending
operations, increased holdings of home mortgages
were primarily responsible for the net growth in the
total mortgage portfolio of life insurance companies
during the year. Over three-quarters of this net
gain was attributable to the home mortgage category.
The outstanding balance of loans on 1- to 4-family
homes aggregated $1,758,000,000 at the close of
1940—an increase of $268,000,000, or 18 percent,
during the year. This compares favorably with the
$170,000,000 (13 percent) increase recorded in 1939.
The investment in this type of mortgages represented
5.7 percent of total life insurance company resources
compared with 5.1 in 1939 and 4.8 percent at the end
of 1938.
This volume of mortgage loans on 1- to 4-family
homes is centered in seven States having aggregate
loans of $972,000,000, or more than 55 percent of
the United States total. New York, Ohio, Texas,
Illinois, California, Pennsylvania, and Michigan, in
that order, represent the greatest concentration of
home financing by life insurance companies.
Mortgages insured by the Federal Housing Administration accounted for much of the 1940 increase
46
in home mortgage holdings, and the unpaid balance
of insured loans on 1- to 4-family dwellings was estimated at 29.2 percent of all home mortgages held by
life insurance companies at the end of the year.
MORTGAGE HOLDINGS IN R E L A T I O N TO T O T A L A S S E T S
A comparison of life insurance investments in Government bonds and in mortgages illustrates better
than anything else the profound changes in investment policies of these organizations. In 1929 when
mortgage loans constituted 42 percent of life insurance company assets, U. S. Government bonds made
up 2 percent of the aggregate. At the close of 1940
these bonds represented 20 percent of assets, second
only to the largest balance sheet item "Stocks and
other bonds/' while mortgage instruments accounted
for 19.5 percent of assets. In other words, despite
increased mortgage lending activity in recent years,
real estate loans still hold a none-too-prominent position in the total investment portfolio.
The investment program of the companies for the
year 1940 is another illustration of this point. Dur-
The chart above indicates the emphasis life insurance companies are placing
on residential mortgage loans. Total mortgage holdings have increased for the
fourth successive year and mortgages on nonfarm homes (single and multifamily)
now approximate half of the total outstanding balance of mortgage loans.
Federal Home Loan Bank Review
ing that year, mortgages constituted 22.3 percent of
new investments; United States Government bonds,
29.5 percent; while stocks, industrial and miscellaneous bonds made up 48.2 percent of the aggregate.
Nevertheless, the huge dollar volume of life insurance
funds available for investment each year makes the
companies a powerful source of mortgage money,
and the preference given by life insurance executives
to home mortgages deserves close attention by the
savings and loan industry.
DISTRIBUTION OF REAL ESTATE OWNED
BY LIFE INSURANCE COMPANIES
1940
H^^/0
D E C L I N E IN R E A L ESTATE HOLDINGS
I
34 7 %
^ ^ ^ ^ ^
M 0 R E
F
^ ^ ^
°l
The year 1940 witnessed a 6.7-percent reduction
in the book value of real estate owned by life insurance companies. Property holdings of all types—
farm and nonfarm, but exclusive of office buildings
and real estate sold on contract—were reduced from
approximately $1,700,000,000 to $1,585,000,000
during the period.
RATIO OF MORTGAGES HELD TO TOTAL ASSETS
ALL LIFE INSURANCE COMPANIES; UNITED STATES 1929 -1940
rALL MORTGAGES
At the beginning of the last decade life insurance companies practically discontinued new investment in mortgage securities with the result shown in this chart:
a steady decline of mortgage holdings—in dollar volume as well as in relation to
total assets—from 1929 through 1939. In 1940, however, the trend was reversed
for the first time.
This progress in liquidating real estate holdings
affected all types of property with the exception of
commercial structures in which there was a 15.7percent increase. The greatest percentage reduction—26 percent—was in the residential category,
while farm property declined 12 percent during the
year. Holdings of 1- to 4-family units were reduced
15.4 percent to $210,000,000.
Real estate disposed of during the year was valued
at $223,000,000—almost 29 percent better than last
year as life insurance companies availed themselves
of an improved real estate market. The largest
sales volume was in farm properties, but percentageNovember 1941
At the end of 1940 life insurance companies had $1,585,000,000 invested in real
estate owned. The proportion of 1- to 4-family homes has declined from 23.3
percent of total real estate in 1934 to only 13.2 percent at the end of last year.
This has been offset by a substantial increase in the ratio of the "other nonfarm"
property classification which, together with farms, now represents almost threequarters of real estate owned by the companies.
wise, the greatest progress over 1939 was noted in
sales of commercial nonfarm properties. Sales of 1to 4-family dwellings totaled almost $54,000,000, or
20 percent over the 1939 volume. Differences between the net reduction in holdings and the gross
sales of real estate are, of course, accounted for by
new acquisitions, largely through foreclosure proceedings.
The bulk of the real estate account shown by life
insurance companies reflects holdings of farm and
nonfarm commercial properties. Holdings of 1- to
4-family homes represented but 13.2 percent of the
total book-value; 5- and more-family dwellings, 14.8
percent; other nonfarm properties, 37.3; while 34.7
percent of the aggregate was composed of farm
properties. Compared with their mortgage portfolio, the real estate held by life insurance companies
is still of substantial volume. In 1939, the investment in real estate owned was equivalent to more
than 30 percent of that in outstanding mortgage
loans. This ratio declined to 26.4 percent in 1940
as a result of the increase in mortgage loans and the
concurrent disposition of property holdings.
47
REGIONAL VARIATIONS IN BUILDING
MATERIAL PRICES
As the trends in building costs are being closely watched by home
buyers, builders, and mortgage-lending institutions, a report by the
Temporary National Economic Committee on building material prices
assumes special significance. The report serves to focus attention on
geographical price differentials as well as on the margin between
wholesale and retail prices.
•
T H E construction industry is the country's
largest industrial employer of labor and far outdistances other industries in the consumption of
materials. Between 1919 and 1935, 15 percent of
the products manufactured in the United States were
consumed by the industry. Despite this prominence
and the common knowledge that material costs vary
greatly throughout the country, there have been
few satisfactory statistics regarding these price
differences.
Since 1936 the Division of Research and Statistics
of the .Bank Board has been compiling costs of constructing a single-family, 6-room frame standard
house in 80 cities throughout the United States, and
inasmuch as 70 to 80 percent of all new residential
dwelling units are in single-family structures, these
cost indexes are representative for the major portion
of new residential construction. Gathered as they
are from cities deemed to be representative of their
adjacent territories, these compilations have been
of value in measuring geographical differences in
building costs, both of labor and materials.
ties important in residential construction, collected
wholesale and retail price statistics for the years
1935 through 1939 in 50 cities, including at least one
city, usually the largest, in each of the 48 States and
the District of Columbia. Although prices included
in this study do not reflect the substantial increases
occurring in the last 12 months, the findings are
important as to geographical differentials and price
structures which may be assumed as basic and not
greatly affected by these changes.
GEOGRAPHICAL INFLUENCES
Pricing practices and varying methods of distribution have contributed to surprisingly large variations
in the prices of building materials throughout the
United States. While these factors constitute major
influences in the cost of materials to contractors, a
realistic study of price structures must recognize as
of equal importance the geographic relationship of
the area to producing centers and the essentially
local nature of the housing industry.
Building material prices, both wholesale and retail,
T N E C SURVEY
vary widely not only between regions but also between cities within a single region. A somewhat
Now, more detailed information has become availgreater
degree of uniformity, particularly among
able for material costs and the telling effect of geogwholesale prices, prevails for most commodities
raphy on both wholesale and retail prices.
which are distributed on a national scale, such as
Within the framework of its "Investigation of
plumbing fixtures and insulation board, than for
Concentration of Economic Power," the Temporary
those which are produced for purely local markets,
National Economic Committee has devoted consuch as brick, sand, and gravel. Products used
siderable attention to the problem of building costs
within a narrow radius of their point of production,
in an effort to determine the factors influencing their
as the latter group, depend almost entirely upon
behavior throughout the United States. Among the
local conditions for their costs of production and
most recent releases of this Committee is a survey of
prices. Other products, including most materials
building material prices made for it by the Bureau of
which
require considerable fabrication, are manuLabor Statistics. 1 The survey, using 37 commodifactured and distributed on a regional or national
i Monograph #33, Geographical Differentials in Prices of Building Materials,
scale; they must be shipped long distances from their
Temporary National Economic Committee; available from the Superintendent
points of production. I n such cases freight charges
of Documents, Washington, D. C.
48
Federal Home Loan Bank Review
generally form an important element in the cost of
the delivered product.
T H E IMPORTANCE OF TRANSPORTATION
Transportation of building materials to the area
of construction is almost without exception an important factor in geographical price differences. A
freight charge from the producing center, whether
billed to the distributor or included in the material
price, is generally reflected in the retail price of the
commodity. Since the ratio of freight charges to
value of building materials at destination ranges
from 4 percent for paints, oils, and varnish to as
high as 57 percent for gravel and sand, the transportation expense determines to a great extent the geographical variation in material prices and the area
in which a specific commodity can move. While the
producer may establish uniform prices for his commodity throughout the country as has been done
with plumbing fixtures and insulation board, in a
preponderance of products the data show distinct
regional differences.
The importance of transportation charges is
evidenced by consideration of the varied regional
prices shown by the accompanying charts. Although
wholesale prices of bathtubs, lavatories, and sinks
remain uniform throughout the Nation, radiation
often produced by the same manufacturers costs
asmuchinthe Rocky Mountain States as 127 percent
of the price charged in the Middle Atlantic base area.
Radiators are not subject to the same methods of
distribution as is plumbing but are grouped with
other heating equipment and regulated in price much
the same way as are heating boilers—a modified zone
and freight equalization system substantially varied
by individual producers.
Looking at another commodity, few significant
regional differentials are revealed in the wholesale
price level of linseed oil. Although production is
mainly confined to the Middle Atlantic, North
Central, and Pacific areas, the wholesale prices do
not relate themselves closely to this distribution;
the highest wholesale prices are found in the Pacific
States while the lowest obtain on the East Coast.
Price differentials of turpentine, on the other hand,
are due nearly without exception to substantial
variations in freight charges, the plant prices of the
commodity being extremely uniform.
I t cannot be categorically stated that delivery
prices will vary exactly in proportion to cost of
shipment since different industries use zoning, basepoint, and freight equalization systems in their disNovember
1941
tribution. For example, producers of window glass
and plaster adhere to a systematic method of freight
equalization to arrive at a uniform delivered price
in a large number of destinations.
In certain areas the sale of lime is attended by
unsystematic price variations in which the prices
in any particular market bear no direct relation to
shipping costs. The large differentials in the wholesale price of this product indicated by the chart on
this page are a result of the great number of small
plants producing this commodity in more than threeGEOGRAPHICAL DIFFERENTIALS IN WHOLESALE
PRICES OF CERTAIN BUILDING MATERIALS
RELATIVES BY REGIONS BASED ON AVERAGE
INDEX
PRICE IN MIDDLE ATLANTIC REGION AS 100
2001
PLASTER
150
100
HYDRATED LIME
150
100
150
ASPHALT STRIP SHINGLE ROOFING
100
100
DOUGLAS FIR INTERIOR DOORS
100
150
HEATING BOILERS
100
#$
vty • • # <§>* v < f %<f # r <v
This chart illustrates the influence of location upon the wholesale prices of
building materials. The Middle Atlantic region serves as a base area for this
study. If a unit of hydrated lime in New York cost $1.00, for example, a dealer
in Wyoming must pay $1.18 for a comparable quantity of the material.
49
Wholesale
and retail prices
September 1939
and
Average of
typical prices
spreads,
Difference
Unit
Item
PerWholeRetail A m o u n t cent
sale
Insulation board
Plaster
Roofing...
Cement, Portland
Lime, hydrated
White lead
Linseed oil
Turpentine
..
Douglas fir dimension.
Oak flooring
Yellow pine boards
Ponderosa pine boards
Douglas fir doors
Windows, glazed
Boilers, heating
Radiation
_
Boilers, range
Closets
Lavatories
Sinks
Bathtubs
M square feet $33.00
13.58
Ton
4.58
Square
2.01
Barrel
12.28
Ton
.09251
Pound
.7644
Gallon
.32381
Gallon
M board feet- 35.91
M board feet. 68.12
M board feet. 28.41
M board feet- 33. 48
1.90
Each
1.53
Each
.88.67
Each
.3020
Square feet--4.68
Each
16.48
Each
11. 62
Each
15.04
Each
41. 28
Each
35 $13.35
3.99
57
1.25
83
.66
67
7.36
64
1125 .0200
. 21771
9821
60581
50
20
76
12
43
29
58
3440
38
60
53
80
60
. 28201
8.59
19. 08
8.35
10. 64
1.53
.76 I
31.91
. 0420
1.70
4.12
2.91
3.76
10. 32
40.5
29.4
27.3
32.8
60.0
21.6
28.5
87.1
23.9
28.0
29.4
31.8
80.5
49.7
36.0
13.9
36.3
25.0
25.0
25.0
25.0
quarters of the individual States; no consistent
Nation-wide pattern governs the pricing practices of
the industry and prices in many localities are set
almost entirely by competition.
On long hauls, blanket freight rates apply on shipments to many destinations within the same general
area; thus the rate of 82 cents per 100 pounds on a
shipment of fir dimension lumber from Portland,
Oregon, to Detroit applies as well to a like quantity
from Portland to Washington, D . C , or Augusta,
Maine.
To sum up, prices of most materials are lowest in
the Middle Atlantic States, a large producing
center of many building essentials; commodities
are most expensive, on the other hand, in the Kocky
Mountain, Southwest, and Pacific States, the
regions most remote from the major production
areas. Despite equalization and zoning practices,
there remains a definite degree of association between transportation charges and the prices of
materials in every region, a relationship which
influences costs to the contractor and may even
prohibit the flow of a material into the region.
tions in the retail market do not attain the magnitude which wholesale price ranges show. The
retail market may, in fact, almost completely ignore
wholesale price changes: in the years 1935-1939
the wholesale price index of varnish ranged from
87.7 to 103.9 (July-September 1939 = 100) while
the retail index for the same commodity varied only
1.1 point. This stability is chiefly attributable to
local market factors including dealer agreements,
the necessity of maintaining a continual high-cost
inventory, and the character of local competition.
Large differences prevail in the average distributive mark-ups both between products and between
regions. The spread between wholesale and retail
prices ranged from 14 percent of the wholesale
price for radiation to 81 percent for fir doors and
87 percent for turpentine. I t is interesting to note
that even in the insulation board industry, in which
wholesale prices are everywhere uniform, retail
prices varied widely with mark-ups ranging from
15 to 52 percent of the wholesale prices.
With the exception of plumbing supplies which
are maintained at a uniform retail quotation, as at
wholesale, with a constant 25-percent spread
between the two levels throughout the Nation, the
mark-up in most commodities varies considerably
among regions with the highest spreads occurring
in the West South Central, Rocky Mountain, and
Pacific States—the smallest in the Middle Atlantic and the East South Central areas.
Directory of Member Institutions
I. INSTITUTIONS ADMITTED TO MEMERSHIP IN
THE FEDERAL HOME LOAN BANK SYSTEM
BETWEEN SEPTEMBER 16 AND OCTOBER 15,
1941
DISTRICT NO. 2
N E W JERSEY:
Clifton:
Center Savings and Loan Association of Clifton, New Jersey, 732 Maine
Avenue.
N E W YORK:
Buffalo:
The Homestead Savings and Loan Association, 360 Pearl Street.
DISTRICT NO. 3
PENNSYLVANIA:
Conshohocken:
Tradesmen's Security Building and Loan Association, 109 Fayette Street.
Philadelphia:
First Lithuanian Building and Loan Association of Philadelphia, 1314
North American Building.
DISTRICT NO. 4
ALABAMA:
THE
SPREAD B E T W E E N
WHOLESALE AND
RETAIL
PRICES
Retail prices usually follow the trend of wholesale
prices for the same commodity, particularly in the
vicinity of major producing areas, although fluctua50
Birmingham:
Avondale Savings and Loan Association, 2028 Third Avenue, North.
Cullman:
Cullman Savings and Loan Association, First Avenue and Fourth Street.
Improved Savings and Loan Association.
DISTRICT NO. 12
HAWAII:
Honolulu:
Pioneer Savings and Loan Association, 832 Fort Street.
Federal Home Loan Bank Review
W I T H D R A W A L S F R O M T H E F E D E R A L H O M E L O A N B A N K SYSTEM
B E T W E E N S E P T E M B E R 16 AND O C T O B E R 15, 1941
DISTRICT NO. 4
ALABAMA:
Cullman:
Cullman Savings and Loan Association, First Avenue and Fourth Street.
Improved Savings and Loan Association.
Birmingham:
Avondale Savings and Loan Association, 2028 Third Avenue North.
ILLINOIS:
Chicago:
St. James Building and Loan Association, 5717 West Fullerton Avenue
(merger with Cragin Savings and Loan Association).
KENTUCKY:
NORTH CAROLINA:
Plymouth:
Plymouth Building and Loan Association, Water Street.
E danger:
Elsmere Building and Loan Association, 119 Garvey Avenue (voluntary
liquidation).
NEBRASKA:
Omaha:
Mutual Benefit Health and Accident Association, Faidley Building
(member's request).
United Benefit Life Insurance Company, Faidley Building (member's
request).
N E W JERSEY:
Bradley Beach:
Jersey Coast Building and Loan Association, Main Street (sale of assets
to Keystone Savings and Loan Association).
Camden:
Cottage Building and Loan Association, 217 North Sixth Street (liquidation).
Hoboken:
Hoboken Building and Loan Association, 84 Washington Street (voluntary liquidation).
Jersey City:
The Five Corners Building and Loan Association, 279 Grove Street
(liquidation).
Paterson:
Provident Building and Loan Association of Passaic County, 5 Colt
Street (merger with Totowa Savings and Loan Association).
Northside Building and Loan Association, 58 Struyk Avenue (merger
with Totowa Savings and Loan Association).
Roseland:
Roseland Federal Savings and Loan Association (merger with First
Federal Savings and Loan Association of Montclair).
OHIO:
Columbus:
Union Building and Savings Company, 22 West Gay Street (liquidation).
PENNSYLVANIA:
r
Mount Carmel:
The Miners' and Laborers' Building and Loan Association of Mount
Carmel, 33-35 East Third Street (member's request).
\ EXAS:
Port Arthur:
Port Arthur Building and Loan Association, Adams Building (voluntary liquidation).
WISCONSIN:
Milwaukee:
Wisconsin Savings Loan and Building Association, 135 West Wells
Street (member's request).
II. FEDERAL SAVINGS AND LOAN ASSOCIATIONS
CHARTERED BETWEEN SEPTEMBER 16 AND
OCTOBER 15, 1941
DISTRICT NO. 7
WISCONSIN:
Racine:
Racine Building and Loan Association, 213 Sixth Street.
DISTRICT NO. 12
HAWAII:
Honolulu:
Pioneer Savings and Loan Association, 832 Fort Street.
Appointment of Public
Directors
•
TWO new Public Interest Directors have been
appointed by the Federal Home Loan Bank
Board to fill vacancies existing in the Federal Home
Loan Bank of Winston-Salem.
Mr. Raymond D. Knight, a practicing attorney of
Jacksonville, Florida, was named to fill the unexpired
portion of a four-year term ending December 31,
1943.
Mr. James Grayson Luttrell was appointed to
finish a four-year term which expires December
31, 1944. Mr. Luttrell is Vice President of McCormick & Company, an international tea and spice
company of Baltimore, Maryland.
Resolutions of the Board
DISTRICT NO. 3
PENNSYLVANIA:
Conshohocken:
Conshohocken Federal Savings and Loan Association, 119 Fayette
Street (converted from Conshohocken Building and Loan Association).
Tradesmen's Security Federal Savings and Loan Association, 109 Fayette Street (converted from Tradesmen's Security Building and Loan
Association).
West Conshohocken:
Rising Sun Federal Savings and Loan Association, Front and Ford
Streets (converted from Rising Sun Building and Loan Association).
DISTRICT NO. 6
MICHIGAN:
Dearborn:
Dearborn Federal Savings and Loan Association, 924 Mason Street
(converted from Dearborn Savings and Loan Association).
C A N C E L A T I O N OF F E D E R A L SAVINGS AND L O A N ASSOCIATION
C H A R T E R B E T W E E N S E P T E M B E R 16 AND OCTOBER 15,
1941
PENNSYLVANIA:
Philadelphia:
Integrity Federal Savings and Loan Association, 1523 IGirard Avenue
(merger with Founders-Oxford Federal Savings and Loan Association).
III. INSTITUTIONS INSURED BY THE FEDERAL
SAVINGS AND LOAN INSURANCE CORPORATION
BETWEEN SEPTEMBER 16 AND OCTOBER 15,
1941
DISTRICT NO. 2
N E W JERSEY:
Cranford:
Cranford Savings and Loan Association, 2 North Union Avenue.
Taterson:
Totowa Savings and Loan Association, 451 Union Avenue.
N E W YORK:
Buffalo:
The Homestead Savings and Loan Association, 360 Pearl Street.
November 1941
I nterest
A M E N D M E N T TO R U L E S A N D
FEDERAL
THE
HOME
HOLDING
OF
LOAN
REGULATIONS FOR
BANK
POLITICAL
OR
SYSTEM
PUBLIC
THE
REGARDING
OFFICE
BY
DIRECTORS OF FEDERAL HOME LOAN BANKS! A d o p t e d
October 15, 1941; effective October 20, 1941.
On October 15, the Federal Home Loan Bank
Board amended Section 2.4 of the Rules and Regulations for the Federal Home Loan Bank System
by the addition of a paragraph prohibiting the
holding of political or public office, for which there
is substantial compensation, by a director of a Bank.
The newly adopted paragraph (d) reads:
(d) Holding political office. No person who holds an
active political office for which he receives compensation
shall hold office as a director of a Bank.
This amendment was proposed on July 10 and
published in the August issue of the R E V I E W .
By resolutions of August 16 and October 15 the
Board defined the terminology set forth in subpara(Continued on p. 68)
51
RESIDENTIAL
BUILDING
INDEX
ACTIVITY
BY YEARS
300
AND SELECTED INFLUENCING
FACTORS
l935-r939 = IOO
ww
B Y
M 0 N T H S
250
200
RESIDENTIAL
CONSTRUCTION^
150
100
_£&aJL
1
1
1
90
70
S
60
\
80
50
— StZZSt
L^--1
Ifc^
.. •-?
> ^ /
&r\
v- \y~\it
r BUILDING
/
K
P**-
K- ^
MATERIAL!
PRIfiF<*(3)
I
,
F(ORECLOSUR
(ALL N()NFARM
r SVGS. a LOAN
i
f\ /{RENTS™
jt.y&.r* \r"
PAYMENTS(4}yf\
INCOME
LENDING®*
40
30
20
1
1
SOURCE: (1)
(2)
(3)
(4)
(5)
| (6)
in
1930
'31
1
1
1
1
1
1
1
1
FEDERAL HOME LOAN BANK BOARD (U. S. Department of Labor records)
NATIONAL INDUSTRIAL CONFERENCE BOARD
U. S. DEPARTMENT OF LABOR
U. S. DEPARTMENT OF COMMERCE
FEDERAL HOME LOAN BANK BOARD
FEDERAL HOME LOAN BANK BOARD
,j
j
j
(
'32
'33
'34
'35
'36
'37
'38
MLLIONS
BOND YIELDS
'39
'40
'41
MILL.ONS MORTGAGE RECORDINGS-ALL LENDERS
$500r
F.H.L.B. ADVANCES OUTSTANDING
$240r
v^* Baa
CORPORATES
200
^Aaa CORPCMATES
180
"^^^
US. TREASURY*
""
(LONG TERM )
'
400
220
19 40^
\ ^
s
160!
*o*i
^
*I94
\/
f
3001
^3^-
° l 1193 9
r
^tc
J*, y^
*v, ^1939
FEB.
J U N . J U L . AUG. SER
^^
\-
200
-^^T
140
100
120
, ] , , ' !
O1
, , 1 , , l . , 1 , ,
100 JAN.
INDEX C O S T OF STANDARD SIX-ROOM HOUSE
NDEX
FEB. M A R APR. MAY
JUN. J U L . AUG. S E P
OCT. NOV.
MAR. APR. MAY
OCT. NOV. OEC.
DEC.
WHOLESALE COMMODITY PRICES
MANUFACTURING PAYROLLS
I50r
125
120
115
110
105
100
95
52
Federal Home Loan Bank Review
« cc «
MONTHLY
S U R V E Y
» » »
Highlights
/. Residential construction enters into a new phase characterized by material shortages and priorities which will lower the level of building
activity.
A. The seasonally adjusted index of residential building activity in urban areas has shown declines for 3 months in a row.
B. Despite this recent drop, the number of urban dwelling units started during the first 9 months of this year totaled
355,000
compared with 294,000
in the same period of 1940.
II. The advance of building costs continued unabated both on wholesale and retail markets.
A. Of the 26 cities currently reporting costs for the construction of the standard house, 18 registered increases of more than $200
during the last quarter.
B. Wholesale building material prices advanced more than 11 percent over September 1940, with lumber and paint materials
showing the largest gains.
III. Mortgage financing activity indicated slight declines from mid-Summer peaks but is still well above the level of a year ago.
A. The cumulative total of mortgages recorded during the first 9 months of this year exceeded the aggregate volume for the entire
year 1939.
B. Mortgage lending activity of savings and loan associations thus far this year has been characterized by a sizeable increase in
the proportion of funds loaned for the purchase of existing dwellings.
C Cumulative loans originated by savings and loan associations during the first 9 months of 1941 exceeded
$1,000,000,'
OOO—last year this amount was not reached until October.
IV. Improved real-estate conditions were evidenced by a further decline in foreclosure activity.
During the first 9 months of this year,
foreclosures were 21 percent below the same period of last year although even then they were at a low level.
Summary
•
W H I L E general business activity was maintained at the high level reached in mid-Summer,
residential construction and mortgage financing in
September seem to have experienced the initial
impact of the restrictions imposed on civilian demand
by the conservation of critical materials for defense
needs.
The seasonally adjusted index of residential building in urban areas continued to decline, and the gain
over 1940 levels was reduced to 5 percent in September. The volume of FHA mortgage insurance under
Title II (number of mortgages selected for appraisal)
dropped this Fall under the 1940 figures, although
this was offseb by larger activity under Title VI
which is designed to stimulate private construction
in defense areas.
In the meantime the demand for housing is expanding at an accelerated rate, and as the supply of new
accommodations in many communities is insufficient
to meet it, the market for existing properties shows
signs of further improvement. Evidence for this
situation is found in the fact that home-purchase
loans made by savings and loan associations have
been increasing this year at a rate nearly double that
of loans for new construction. A favorable market
November 1941
for existing properties is also indicated by the
progress these institutions are making in the disposition of their real estate. During the two months
ending August 31, insured savings and loan associations reduced their real estate owned by 7 percent,
according to a special study by the Division of
Research and Statistics.
Improved real-estate conditions are likewise evidenced by the accentuated decline in foreclosures.
The September index of nonfarm real-estate foreclosures was 31 percent below the figure for September 1940 although even then foreclosure activity had
reached a low level.
[1935-1939=100]
Sept.
1941
Aug.
1941
Percent
change
Sept.
1940
Percent
change
211.2
32.8
109.0
118.8
•p 180.4
P 161.0
*>133.4
*180.9
136.9
' 215. 9
'33.3
108.6
117.8
'176.7
' 160.0
' 134.9
r
182. 4
p
134.8
-2.2
-1.5
+0.4
+0.8
+2.1
+0.6
-1.1
-0.8
+1.6
201.7
47.4
106.6
106.8
157.3
125.0
110.3
124.4
114.6
+4.7
-30.8
+2.3
+11.2
+14.7
+28.8
+20.9
+45.4
+19.5
•p=preliminary. r =revised.
i Adjusted for normal seasonal variation.
53
General Business Conditions
•
S E P T E M B E R marked the start of the third
year of World War I I , and for industrial production the month marked the continuation of a pause
to get a i 'second wind.'' Industrial output for September was at about the same level as in July and August,
as measured by the Federal Reserve index, indicating
a smoothing out of the usual Summer decline and
Fall recovery in business conditions.
Commerce estimates that these inventories were
21 percent larger than a year ago, and 41 percent
larger than in August 1939, with part of the increase
reflecting higher prices. The National Industrial
Conference Board reports that the index of manufacturers' unfilled orders declined during September
for the first time in 18 months as a result of a drop
in new orders, while shipments were at about the
same level as in August.
The seasonal peak in freight shipments usually
reached in October has apparently been passed without the difficulties which had been anticipated. This
is attributed to the movement of goods at a high
level throughout the late Summer months—in line
with the pattern of industrial production.
Purchases by the general public reached peak
levels at the end of September in anticipation of new
taxes effective October 1, but total retail sales for
the month were somewhat below the record activity
for August when adjusted for seasonal factors.
Federal Reserve economists point out that sales during July, August, and September have been larger
than in the same period of any previous year.
RESTRICTIONS ON NONESSENTIAL CONSTRUCTION
On October 9, the Supply Priorities and Allocations Board announced new restrictions affecting all
public and private construction projects which use
critical materials. The regulations provide that no
new programs can be undertaken unless they are
necessary for direct* national defense or essential to
the health and safety of the Nation. The announcement, however, did not alter materially the system
of priorities for residential construction established
in September,
Residential Construction
[Tables 1 and 2]
H
General economic changes during the first two
years of War are summarized in the accompanying
chart reprinted from the Federal Reserve Bulletin.
These are highlighted by a 60-percent increase in
industrial output; a 25-percent rise in the National
income to an annual rate of about $90,000,000,000;
and a 22-percent jump in wholesale prices.
Significant among the underlying factors in the
business situation has been the substantial accumulation of manufacturers' inventories during the 2-year
period. At the end of August the Department of
54
FOR the third consecutive month, the seasonally adjusted index of residential construction,
which is now revised to include all urban areas,
showed a decline although the level is still above the
corresponding period of 1940. The preliminary
index figure for September is 211 (average of 19351939 = 100) compared with 216 in August and a
high of 238 in June. This decline may reflect the
shortages of critical materials which have caused the
application of the priorities system to housing
although the priorities procedure itself did not go
into effect before September 22.
Federal Home Loan Bank Review
NEW RESIDENTIAL CONSTRUCTION IN ALL URBAN AREAS
PERMITS ISSUED FOR PUBLICLY AND PRIVATELY FINANCED DWELLING UNITS
THOUSANDS OF
DWE LLING U MITS
35
1 PRIVATE
1
/ and 2 FAMILY 1 < — *
30
*y
25
20
15
10
ALL PUB
5
;"T,
EC
MAR.
3< /\.JU*w
LIC
%
,
JUN.
1940
,
1 , PRIVATE
SEP
DEC
MULTI-FAMILY
MAR.
JUN.
1941
SEP
DEC.
MAR.
JUN.
1942
SEP
DEC.
Building Costs
Building permits for privately financed construction were issued for 31,000 dwelling units in September compared with 34,000 units in August,
according to data reported by the U. S. Department
of Labor. The reduction from last month was
primarily in the single-family category. In contrast, private construction of multifamily units and
publicly financed housing increased from last month,
the latter by nearly 1,700 units.
For the first 9 months of 1941, residential construction volume in urban areas totaled nearly
355,000 units, or 60,000 more units than the total
reported for a comparable 1940 period. All types
of structures shared in this rise with units financed
by public funds showing an increase of 48 percent
over the same months of last year.
On the basis of more comprehensive data received
from the Bureau of Labor Statistics of the U. S.
Department of Labor, the index of total residential
construction, presented in the chart on page 52 and
Index of total number of dwelling units provided
in urban areas 1
[Adjusted for seasonal variation]
I Average month 1935-1939—1001
Period
1941
Annual January
February..March
April
May
June
July
August
September-.
October
November..
December. _
192.7
194.9
174.8
216.9
203.6
237.9
231.8
215.9
211.2
1940
1937
1939
1936
180.!
155.7
111.9
93.5
90.6
135.0
176.6
158.8
177.2
177.3
151.0
187.4
191.5
201.7
228.1
185.6
195.2
157.4
145.5
141.3
125.1
171.0
153.1
145.8
176.3
140.8
143.8
184.3
198.5
89.6
81.2
90.9
92.7
96.2
107.3
132.8
133.9
134.6
125.2
131.6
122.8
87.2
125.6
120.0
115.5
90.0
100.7
79.8
83.6
83.6
73.7
74.3
87.8
64.8
59.2
70.3
71.5
73.7
113.5
124.0
102.3
96.7
95.8
101.1
108.7
i Annual indexes for the years 1930 through 1935 are as follows: 1930—102.0;
1931—74.7; 1932—25.5; 1933—18.2; 1934—18.7; 1935—48.3.
November 1941
in the table on page 53, has now been revised to
represent all urban areas in the United States.
Previously this index had been based on construction data for cities of 10,000 population or more
Inasmuch as a sizeable portion of residential construction takes place in urban communities below
the 10,000 limit, the revised index is designed to
convey a more accurate measure of urban residential
building activity. Index figures for previous periods
are given in the preceding table. This table replaces
the figures in Table 1 of the Statistical Supplement
distributed with the March R E V I E W .
[Tables 3, 4, and 5]
•
MATERIALS used in constructing the standard
6-room frame house continued the rapid rise
which was begun in August of last year. There
was a tendency for prices to level off in the first
part of 1941, but during the past few months there
has been an accelerated price increase, with a 5-percent rise in the last quarter.
Construction costs for the standard house
[Average month of 1935-1939=100]
E l e m e n t of cost
September
1941
August
1941
Percent
change
September
1940
Percent
change
..
114. 4
120. 7
r
112. 6
120. 0
+ 1.6
+ 0. 6
101. 9
104. 8
+ 12. 3
+ 15.2
Total
116. 5
'115. 1
+ 1.2
102. 9
+ 13. 2
Material
Labor
r
=revised.
The index of material costs in September stood
12 percent above the corresponding month of last
year. Labor costs involved in the construction of
the standard house are 15 percent above the September 1940 level. Combined material and labor costs
have advanced 13.2 percent during the past 12
months, and now stand at the highest level attained
thus far.
Among the 26 cities reporting cost estimates for
the standard 6-room frame house in October, 18
registered increases of more than $200 during the
past quarter. Camden, New Jersey reported the
largest increase—more than $900. Of the reporting
cities in October, the greatest rise from a year ago
is noted in the New York Bank District, where
costs have advanced $1,000 to $1,500.
55
Wholesale building material prices likewise continued to increase and the composite index of the
U. S. Department of Labor (1935-1939 = 100)
reached 118.8, a jump of more than 11 percent over
last year. Lumber prices showed the largest gain
(almost 21 percent), followed by paint and paint
materials (approximately 13 percent) and plumbing
and heating (8 percent).
New Mortgage-Lending Activity of
Savings and Loan Associations
[Tables 6 and 7]
ANALYSIS of lending operations of savings and
loan associations this year reveals that home
purchase loans have been expanding at a much
more rapid rate than have those for the construction
of new homes. Increased concentration of lending
activity on mortgages for the acquisition of existing
dwellings is largely due to the accelerated housing
demand which cannot be met by new construction
alone.
Loans for new construction, which displayed a
17-percent increase during the first eight months
of 1941, would no doubt have shown still greater
improvement over the preceding year had shortages
not appeared in some building material items due
to the needs of the national defense program.
Although this rise does not compare with the 33percent increment shown for the home-purchase
classification, it stands out in bold relief when contrasted With the reductions shown in refinancing,
reconditioning, and miscellaneous loans in the 19401941 comparison.
Total loans made by savings and loan associations
reflected a 2-percent decrease from July to August.
Considered geographically, all but four scattered Federal Home Loan Bank Districts registered reductions
from July in new mortgage lending.
Mortgage recordings by type of mortgagee
[Amounts are shown in thousands of dollars]
T y p e of lender
Savings and loan associations
_ _
Insurance companies
Banks, t r u s t companiesM u t u a l savings banks
Individuals
Others
•
Mortgage Recordings
[Tables 8, 8-a, and 9]
•
ACTIVITY in the mortgage-financing field,
although declining slightly for the second consecutive month, continued during September at a
high rate. More than 146,000 nonfarm mortgages
of $20,000 or less, representing $425,000,000, were
recorded by all types of mortgage lenders during
September. In dollar volume this surpassed by
56
PerPerPercent
cent
cent
C
u
m
u
l
a
t
i
v
e
change
of
of
recordings
from
(9 m o n t h s ) total
Sept.
Aure1941
1941
gust
cord1941 a m o u n t
ings
Total
-2. 4
+ 0. 7
-4. 2
+ 8.3
+ 2.0
+ 2.4
31. 9 $1, 125, 122
294, 076
8. 5
867, 155
23. 7
156, 800
4. 9
579, 738
16. 6
491, 041
14.4
32. 0
8.4
24. 7
4.4
16. 5
14. 0
-0.7
100.0 $3, 513, 932
100. 0
more than $100,000,000 the highest month of 1939
and, by $36,000,000 the greatest monthly volume
during 1940.
During the first 9 months of this year, lenders on
nonfarm real estate have recorded more than 1,220,000 mortgages valued in excess of $3,500,000,000—
an investment greater than that during the entire
year of 1939. A comparison of activity during the
January-September period of this year with the same
periods of 1939 and 1940 reveals that the percentage
increase shown by the value of instruments recorded
has been well in excess of that shown by the number
of mortgages recorded. The reason for this is an
increased average value of recordings, which is
largely the result of generally increasing real-estate
values, rising building costs in both materials and
labor, and the wide use of high-percentage loans.
Foreclosures
[Table 10]
•
T H E number of nonfarm foreclosures in the
United States reached 4,352 in September, an
increase of 2.4 percent above the estimate for the
preceding month. Since the normal movement at
this period of the year is an increase of 4 percent, this
slight increment was reflected in a further decline in
the seasonally adjusted index of nonfarm foreclosures.
The increase in the number of foreclosure proceedings was accounted for largely by a substantial rise
in those occurring in counties of less than 5,000
dwellings. For the country as a whole, 67 percent of
all cases took place in areas affected by the defense
program and predominately in large communities.
Federal Home Loan Bank Review
During the first 9 months of the year foreclosure
activity was 21 percent below that in the corresponding period of 1940. The greatest relative improvement was made in counties having 60,000 dwellings
and over. The number of foreclosures in this classification declined 23.6 percent and currently comprise only half of the 45,378 cases which have occurred
in the entire country since the beginning of the year.
Although there has been a net growth of only 27
Federal savings and loan associations during the past
12 months, representing a relative expansion of only
2 percent, the growth in their resources has been
substantial. During the year ending September
1941, total assets of Federals have increased $300,428,000, or 17 percent.
Progress in number and assets of Federals
Federal Savings and Loan Insurance
[Amounts are shown in thousands of dollars]
Corporation
Number
[Table 12]
AT the end of September, 2,326 institutions with
assets of $3,222,299,000 were members of the
Insurance Corporation. During August of this year,
approximately $62,400,000 was invested by private
savers in the shares of insured savings and loan
associations, a gain of $11,350,000 over the corresponding month of last year. Repurchases increased
$12,000,000 during the same period and represented
77 percent of new investments in August 1941 compared with 71 percent in the same month last year.
Mortgage-lending activity during August approximated $85,000,000, an increase of 17.4 percent over
the lending operations of a year ago.
An acceleration in property sales since the beginning of the year has resulted in a 15-percent drop in
the real estate owned by an identical group of insured
savings and loan associations during the first six
months of 1941. A special tabulation recently
undertaken by the Division of Research and Statistics revealed that a further drop of 7 percent has
occurred in the real-estate holdings of these associations during July and August alone. If this tendency
continues, the final six months of 1941 will witness
an unprecedented curtailment of 20 percent in the
volume of properties owned by these institutions.
Class of association
I
Federal Savings and Loan Associations
[Table 12}
B
AT the close of September 1,459 associations
with total assets of $2,076,724,000 were operating
under Federal charter. A total of 819, or 56 percent
of these associations, were originally chartered by the
respective States in which they are located. In
terms of aggregate assets, converted associations accounted for 69 percent of the resources of all Federal
associations.
Novzmbzr 1941
New
__
Converted
_
Total
Sept.
30,
1941
640
819
1,459
Approximate assets
Aug.
31,
1941
Sept. 30,
1941 *
Aug. 31,
1941
640 $645, 884
819 1, 430, 840
$635, 648
1, 415, 737
2, 076, 724
2, 051, 385
1,459
v=preliminary.
Federal Home Loan Bank System
[Table IS]
•
L E N D I N G operations of the Federal Home
Loan Banks during September again showed an
upward movement with advances outstanding reaching a new 1941 high of $178,191,000. This was 3.2
percent above the amount reported at the end of
August and 1.3 percent higher than last year. All the
Banks participated in this gain, except Cincinnati
which lor the third consecutive month showed a
diminishing amount of advances outstanding. The
percent of increase in the outstanding advances of
the other Banks ranged from 0.3 percent in the Chicago area to 11.4 percent in New York.
New advances made in September increased approximately $2,000,000 over August—almost back to
the July level. Repayments in September were approximately $5,500,000 below advances for the month.
They were, however, $897,000 above repayments during the preceding month, with seven Banks showing
increases over their August figures.
The New York Bank showed the largest amount of
advances made during September, as well as the
greatest increase over the previous month. Advances in Boston, New York, Winston-Salem, Indianapolis, Chicago, Des Moines, Portland, and Los
Angeles also exceeded the August volume.
57
Table 7.—Estimated number and valuation of new family dwelling units provided in all urban areas of
the United States, September 1941
[Source: U. S. Department of Labor]
[Amounts are shown in thousands of dollars]
P e r m i t valuation
N u m b e r of family dwelling units
J a n .-Sept. totals
M o n t h l y totals
T y p e of construction
Sept.
1941
Aug.
1941
Sept.
1940
1941
M o n t h l y totals
Sept.
1941
1940
Aug.
1941
J a n . - S e p t . totals
Sept.
1940
1941
1940
31, 205 ' 34, 184 31,082 296, 653 254, 889 $118,453 '$132,576 $113,055 $1, 111, 186 $918, 004
P r i v a t e construction
1-family dwellings
26, 170 29,411 25, 481 235, 759 201, 569 105, 036
6,606
18, 941 15, 079
2,428
2,091
2-family dwellings 1
2,430
41, 953 38, 241
6,811
3- a n d more-family dwellings 2 2,607 ' 2, 343 3,510
120,385
6,327
r
5,864
98, 338
5,073
9,644
943, 588
48, 850
118, 748
770, 141
37, 750
110, 113
32, 103
28,445
24, 819
193, 085
118, 794
Public construction
7,421
9,088
Total u r b a n c o n s t r u c t i o n . 40, 293 ' 4 1 , 6 0 5
7,399
57, 905
39, 154
38, 481 354, 558 294, 043 150, 556 '161,021
137, 874 1, 304, 271 1, 036, 798
r
=revised.
Includes 1- and 2-family dwellings combined with stores.
Includes multi-family dwellings combined with stores.
1
2
Table 2.—Estimated number and valuation of new family dwelling units provided in all urban areas
in September 1 9 4 1 , by Federal Home Loan Bank District and by State
[Source: U. S. Department of Labor]
[Amounts are shown in thousands of dollars]
All residential dwellings
N u m b e r of family
dwelling units
Federal H o m e Loan B a n k District
and State
September 1941
UNITED
STATES-
.
..
No. 1—Boston
40, 293
_ .
.
Connecticut _ _
Maine
Massachusetts _
New H a m p s h i r e
Rhode Island
Vermont __
_
No. 2—New York
New Jersey
New York
No. 3 — P i t t s b u r g h
Delaware
Pennsylvania _
West Virginia _
58
_
_ _ _
.
All p r i v a t e 1- a n d 2-family dwellings
Permit valuation
N u m b e r of family
dwelling units
September 1940
September 1941
38, 481 $150, 556 $137, 874
28, 598
September 1940
September 1941
September 1940
Permit valuation
September 1941
September 1940
27, 572 $111,642
$103,411
2,033
2, 169
9,077
8,853
1,508
1,608
7, 105
6,910
510
262
1,046
43
159
13
486
86
1,340
55
178
24
2,635
997
4,542
120
669
64
2,357
273
5,206
198
708
111
502
62
729
43
159
13
479
83
792
55
175
24
2,653
219
3,380
120
669
64
2,329
268
3,305
198
699
111
3,440
4,785
14, 481
18, 275
2,422
2,407
10, 958
10, 635
1.375
2,065
1,322
3, 463
5,939
8,542
5,613
12, 662
1,067
1,355
857
1,550
4,753
6,205
3,896
6,739
3,514
3,251
14, 416
12, 206
1,855
1,754
8,414
7,616
31
2,885
598
40
2,803
408
151
12, 224
2,041
199
10, 636
1,371
31
1,633
191
40
1,438
276
151
7,706
657
199
6,407
1,010
Federal Home Loan Bank Review
Table 2.—Estimated number and valuation of new family dwelling units provided in all urban areas,
in September 1 9 4 1 , by Federal Home Loan Bank District and by State—Continued
[Amounts are shown in thousands of dollars]
All residential dwelling s
N u m b e r of family
dwelling units
Federal H o m e Loan B a n k District
a n d State
No. 4—Winston-Salem_
Alabama
_
District of Columbia
Florida. _ _
Georgia
.
Maryland.
_
N o r t h Carolina
South Carolina.
Virginia _
_ _
_
_
...
... .
No. 5 — C i n c i n n a t i . .
Kentucky
Ohio
Tennessee
No. 6—Indianapolis__
Indiana.
Michigan..
N o . 7—Chicago _
Illinois
Wisconsin
.
.. _
_• _
No. 8—Des Moines
Iowa
Minnesota
Missouri.
North Dakota
South D a k o t a . _
N o . 9—Little Rock
Arkansas _
Louisiana _
Mississippi. _
New Mexico
Texas
_ _
.
_ _
No. 10—Topeka _
Colorado
Kansas _
Nebraska
Oklahoma
N o . 11—Portland
Idaho
Montana _
Oregon _
Utah
Washington.
Wyoming
_
_
N o . 12—Los Angeles
Arizona
California
Nevada
November 1941
__
_
All priv ate 1- a n d 2-family dwellings
Permit valuation
N u m b e r of family
dwelling units
Permit valuation
September 1941
September 1940
September 1941
September 1940
September 1941
September 1940
September 1941
6,634
6,363
355
743
1,292
758
359
703
653
1,500
$19, 899
610
892
1,003
486
2,098
548
339
658
$19, 468
732~
2,736
4,268
1,863
1,276
1,747
1,716
5, 130
4,423
448~
189
769
476
1,288
522
236
495
3,911
346
335
963
522
359
566
241
579
$13, 791
841
1,038
2,848
1,052
3,553
1,481
650
2,328
$12, 803
708
1,707
3,477
1,253
1,276
1,451
580
2,351
2,813
205
2, 169
439
2,229
315
1,585
329
11, 669
532
9,828
1,309
9, 192
756
7,598
838
2, 254
2,035
205
1,620
429
290
1,437
308
9,821
532
7,988
1,301
8,655
689
7, 144
822
3,775
1,289
2,486
5,292
15, 824
4,645
11, 179
21, 091
4, 144
16, 947
2,629
828
1,801
2,631
663
1,968
11,410
2,998
8,412
10, 954
2,436
8,518
1, 145
4, 147
1,319
2,506
3,476
1,068
6, 130
1,557
1, 104
2,739
September 1940
2,958
2,376
582
1,882
1,306
576
13, 737
11,339
2,398
8,815
6,404
2,411
2, 159
1,619
540
1,771
1,201
570
11,011
8,724
2,287
8,400
6,006
2,394
1,803
459
591
603
52
98
1,941
7,324
7,062
517
696
544
44
140
1,806
2,668
2,315
192
343
1,836
2,739
1,988
159
340
1,658
459
586
463
52
98
1,871
517
682
488
44
140
6,759
1,806
2,653
1,765
192
343
6,807
1,836
2,705
1,767
159
340
4, 838
418
1, 166
541
130
2,583
2,971
205
414
229
136
1,987
14, 022
1,201
3,518
1, 192
353
7,758
7,529
456
1, 152
363
318
5,240
3,066
168
522
358
120
1,898
2, 721
189~
399
222
132
1,779
8, 295
436
1,458
588
345
5,468
7,097
432
1, 123
350
313
4,879
1,287
347
303
217
420
1,064
267
207
195
395
4,067
1, 161
798
820
1,288
3,403
911
583
702
1,207
1, 192
268
303
211
410
1,047
260
203
189
395
3, 746
865
798
804
1,279
3,369
901
579
682
1,207
1,995
62
102
287
242
1,237
65
1, 534
149~
135
397
307
491
55
7,322
4,869
412
360
1,264
971
1,660
202
1,472
1,379
155
370
968
1,048
4,523
258
59
102
287
228
731
65
149
117
272
303
483
55
5,589
149
370
968
1,038
2,806
258
4,381
412
329
829
963
1,646
202
5,203
5,000
18, 718
17, 111
3,960
4,437
114
5,004
85
63
4,901
36
223
16, 736
152
94
3,790
76
63
4, 338
36
14, 743
365
14, 197
181
15, 784
223
15, 409
152
401
18, 125
192
59
Table 3.—Cost of building the same standard house in representative cities in specific months1
NOTE.—These figures are subject to correction
[Source: Federal Home Loan Bank Board]
Cubic-foot cost
Federal H o m e Loan B a n k
District a n d city
T o t a l cost
1941
1941
1940
Oct,
Oct.
Oct.
July
Apr.
_ _ _ $0. 302
.323
. 303
.279
. 284
. 301
.287
$0. 257
. 261
.239
.236
.239
.251
.233
$7, 257
7,745
7,267
6,701
6,821
7,222
6,890
$7, 165
6,799
7,015
6,597
6,586
7,312
6,516
$7, 168
6,421
6, 140
6,532
6,281
6,418
6, 359
No. 6—Indianapolis:
Evansville, I n d
Indianapolis, I n d
South Bend, I n d
Detroit, Mich
G r a n d Rapids, Mich
. 285
. 275
.283
.284
. 298
.263
.231
. 253
. 251
. 245
6,837
6,595
6, 800
6,824
7,157
6, 534
6,393
6,641
6,486
6, 536
6,479
6,407
6,474
6, 179
6,203
No. 8—Des Moines;
Des Moines, Iowa
D u l u t h , Minn
St. Paul, Minn
K a n s a s City, Mo
St. Louis, Mo
Fargo, N . D
Sioux Falls, S. D
. 271
. 270
. 284
.272
. 250
.257
.276
.267
. 257
.271
. 242
.233
.242
.258
6,506
6,474
6,824
6, 536
6,007
6, 162
6,617
6, 184
6,214
6,610
2 6, 239
5,830
5,786
2 6, 202
6,390
6,261
6,608
2 6,216
5, 792
2
5, 883
2
6, 208
.276
.315
.237
. 294
.306
. 299
.270
.268
.287
2. 220
.254
. 269
. 265
.251
6,617
7,553
5,681
7,057
7,340
7, 166
6,477
2 6, 701
7,294
5,299
6,807
7,188
6, 939
6,409
No. 2—New York:
Atlantic City, N . J
Camden, N . J
Newark, N . J
Albany, N . Y
Buffalo, N . Y
Utica, N . Y
W h i t e Plains, N . Y
__ _
No. 11—Portland:
Boise, I d a h o _
Great Falls, M o n t . _ _
Portland, Oreg
Salt Lake City, U t a h
Seattle, Wash
Spokane, Wash
Casper, Wyo
2
6,575
7,308
5, 277
6,416
6,956
6,864
6,392
1940
1939
1938
1937
Jan.
Oct.
Oct.
Oct.
Oct,
$7, 051
6, 413
6,058
6, 177
6, 150
6, 135
6,303
$6, 174
6,255
5, 729
5,661
5,741
6,014
5,597
$6, 272
5,829
5, 654
5,602
5, 914
5,786
5, 538
$5, 907
5, 559
5, 537
5,557
5,931
5,660
5,543
513
375
504
199
399
6, 319
5,555
6,080
6,013
5,888
6,
5,
5,
5,
5,
095
725
848
935
672
5, 742
5,765
5, 353
6, 166
5,871
6,411
6, 262
6, 610
2
6, 234
5, 786
2
5, 916
6, 091
6, 399
6, 157
6,508
5,797
5,604
5, 798
6, 193
6,303
6,043
6,550
5,960
5,514
5,841
6,051
6, 164
6, 186
6,532
6, 112
6,887
5, 216
5,998
6,310
6,282
6,594
6,002
6,
6,
6,
6,
6,
2
6,
7,
5,
6,
6,
6,
6,
575
148
198
355
862
893
467
6,435
6, 890
2 5, 281
6,087
6,458
6,361
6,024
2
5,470
5,832
6,436
5,265
5,880
6,259
6,286
6,430
$6, 056
5,884
5,877
6, 143
5,848
6, 221
5,829
6,463
6,279
6, 822
6,090
6,006
5,975
6, 344
6, 159
7,039
6, 032
6, 532
6, 851
6, 563
i The house on which costs are reported is a detached 6-room home of 24,000 cubic feet volume. Living room, dining room, kitchen, and lavatory on first floor; three
bedrooms and bath on second floor. Exterior is wide-board siding with brick and stucco as features of design. Best quality materials and workmanship are used
throughout.
The house is not completed ready for occupancy. It includes all fundamental structural elements, an attached 1-car garage, an unfinished cellar, an unfinished attic,
a fireplace, essential heating, plumbing, and electric wiring equipment, and complete insulation. It does not include wall-paper nor other wall nor ceiling finish on interior
plastered surface, lighting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades.
Reported costs include, in addition to material and labor costs, compensation insurance, and allowance for contractor's overhead and transportation of materials
plus 10 percent for builder's profit.
Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks and driveways; they do not include
architect's fee, cost of building permit, financing charges, nor sales costs.
In figuring costs, current prices on the same building materials list are obtained every three months from the same dealers, and current wage rates are obtained from
the same
reputable contractors and operative builders.
2
Revised.
Table 4.—Index of building costs for the standard house
[Average month of 1935-1939 = 100]
Aug.
1941
July
1941
June
1941
May
1941
Apr.
1941
Mar.
1941
Feb.
1941
Jan.
1941
Dec.
1940
Nov.
1940
Oct.
1940
Sept.
1940
114.4 ' 1 1 2 . 6
120. 7 120.0
110.7
119.3
109.2
118.6
108.8
117.0
108.7
116. 1
108.0
115.3
107.8
115. 1
106.6
114.5
105.9
112.5
104.6
109.8
103.4
106.9
101.9
104. 8
Total cost- 116. 5 '115. 1
113.6
112.4
111.6
111.2
110.4
110.2
109.3
108.1
106.4
104.6
102.9
Element of cost
Material.
Labor
Sept.
1941
«• R e v i s e d .
60
Federal Home Loan Bank Review
Table 5.—Index of wholesale price of building materials in the United States
[1935-1939=100]
[Source: U. S. Department of Labor]
Paint and
paint materials
Plumbing
a n d heating
Structural
steel
104. 5
104. 1
104. 2
103. 5
99.4
99.5
99.7
99.8
119.3
127.4
130.8
132.3
103.4
104.3
105.4
105.0
105.8
105.8
105. 8
105. 8
103.5
103.5
103.5
103.5
101.
101.
101.
102.
100.5
100.6
100.7
100.9
101. 1
101.8
103.7
104. 7
105.3
99.7
99.7
,99.7
99.9
100.4
100.9
101. 1
101. 1
101.2
131.9
130.5
130.0
130.0
130. 1
131.0
136.2
142.0
143.8
106.6
106.5
107.5
109. 1
109.8
111. 0
112. 6
114. 7
116. 4
105. 8
108.0
108.8
109.0
109.0
109.2
109.3
114.0
114. 4
103.5
103.5
103.5
103.5
103.5
103. 5
103.5
103.5
103. 5
102.6
102. 6
103.0
103. 7
104. 1
104. 8
106.4
108.0
108. 4
+ 0.6%
+ 6.0%
+ 0.1%
+ 1.8%
+ 1.3%
+ 20. 5 %
+ 1.5%
+ 12.6%
+ 0.4%
+ 8.1%
0.0%
0.0%
+ 0.4%
+ 7.2%
All building m a t e rials
Brick a n d
tile
1939: September
101. 5
100. 2
100.2
1940: S e p t e m b e r - .
October
November
December
106. 8
109. 2
110. 4
110.9
99.3
99.3
99.3
100.3
1941: J a n u a r y .
February
March
April
May. _ _ _ _ _ _ _
_
June
_ __ _ __
July
August. _
_ __
September __
111.2
110.9
111. 1
111.8
112. 1
112.8
115. 1
117.8
118. 8
Change:
Sept. 1941-Aug. 1941___
Sept. 1941-Sept. 1940—-
+ 0. 8 %
+ 11.2%
Period
1
Cement
1
Lumber
Other
97.7
1
4
9
2
Based on delivered prices at 48 cities and introduced into the calculation of the Bureau's general indexes of wholesale prices beginning with March, 1939.
Table 6.—Estimated volume of new home-mortsase loans by all savings and loan associations, by
purpose and class of association
[Thousands of dollars]
Purpose of loans
Class of association
Period
Construc- H o m e pur- Refinancing
tion
chase
Reconditioning
Loans for
all other
purposes
Total
loans
Federals
State
members
Nonmembers
1939
$301, 039
$339, 629
$182, 025
$59, 463
$104, 227
$986,383
$400,337
$396, 041
$190, 005
January-September
September, _
218, 254
27, 854
248, 033
31, 367
135, 744
16, 021
44, 624
5, 544
77, 243
8, 946
723, 898
89, 732
293, 645
37, 090
290, 314
36, 989
139, 939
15, 653
1940
398, 632
426, 151
198, 148
63, 583
113,065
1, 199,579
509, 713
483, 499
206, 367
January-September
September, _
October
_
November
December
„
294, 406
39, 417
41,610
32, 584
30, 032
320,
40,
40,
33,
31,
040
947
771
875
465
152,
15,
16,
14,
14,
292
483
840
441
575
48, 710
6,283
5,756
4,869
4,248
86,611
9,645
9,423
8, 798
8, 233
384,
46,
48,
38,
37,
795
480
307
896
715
360,
45,
46,
40,
36,
403
988
224
143
729
156,
19,
19,
15,
14,
27, 809
30, 283
41, 784
48,311
54, 781
55, 993
55, 682
55, 973
13,
14,
16,
16,
18,
17,
16,
15,
645
204
903
905
506
891
816
785
3,784
3,573
4,765
6,368
5,930
5,633
6,022
5,571
\* 1,044,055 * 448, 435
8,540
80, 440
34, 360
7, 787
35, 645
82,330
8,460
45, 365
105, 162
10,361 ! 120,631
51, 371
10,761
130,953 |
55,396
9,916
133,640
57, 542
9,534
132, 972
56, 564
r
9,411
' 129, 727
57, 592
» 128, 200
* 54, 600
* 437,
33,
35,
43,
50,
54,
54,
55,
' 54,
" 53,
421
947
301
947
956
495
857
676
542
700
902, 059
111,775
114,400
94, 567 1
88,553
861
307
869
528
109
1941
January-September
January
February
March
April
May
June
July
August _ „
September _
26, 662
26, 483
33, 250
38, 686
40, 975
44,207
44, 918
42, 987
p Preliminary.
November 1941
r
» 158, 199
12, 133
11, 384
15, 850
18, 304
21, 062
21,241
20, 732
r
17, 593
" 1 9 900
Revised.
61
Table 7.—Estimated volume of new home-mortgage loans by all savings and loan associations/ by
Federal Home Loan Bank District and class of association
[Amounts are shown in thousands of dollars]
New loans
Federal H o m e Loan B a n k District a n d class of association
August
1941
United S t a t e s : T o t a l
$129, 727
57, 592
Federal
1
54, 542
State member. _
17, 593
Nonmember
District No. 1: T o t a l
Federal
State member. _
Nonmember
District No. 2: T o t a l
Federal
State member. _
Nonmember
District No. 3 : T o t a l
Federal
S t a t e member__
Nonmember
District No. 4: T o t a l
Federal
State member__
Nonmember
District No. 5: T o t a l
Federal _
State m e m b e r , _
Nonmember
July
1941
$132,972
56, 564
55, 676
20, 732
14, 559
5, 203
7, 575
1, 781
12, 234
4,291
4, 077
3, 866
9, 788
4,002
2, 459 !
3, 327 1
15,083
5, 164 j
7,902
2,017
13,412
4,032
4,405
4,975
18, 883
9,511
7, 852
1, 520
21, 242
8, 043
10, 464
2, 735 !
17,
8,
7,
1,
10, 569
4,086
2,548
3,935
484
333
543
608
6,338
2,738
3,505
95
22, 643
8, 448
11, 106
3,089
6,530
3,342
2,954
234
13, 257
4, 793
6,543
1,921
7,454
3,831
2,332
1,291
6,700
2,770
3,577
353
D i s t r i c t N o . i l : Total
Federal
State m e m b e r .
Nonmember
5, 563
3, 125
1, 399
1, 039
4, 357
2, 783
1,412
162
4,650
2,455
1,214
981
4,697
3,050
1,359
288
District No. 12: Total
Federal
State member.
Nonmember
9, 574
5, 572
3, 966
36
10, 493
6,260
4, 193
40
District N o . 6: T o t a l
Federal _
S t a t e member__
Nonmember
District No. 7: T o t a l
Federal _ .
State m e m b e r . _
Nonmember
District No. 8: T o t a l
Federal
State m e m b e r . _
Nonmember
District N o . 9: T o t a l
Federal
S t a t e member__
Nonmember
District No. 10: T o t a l
Federal
State m e m b e r .
Nonmember
62
6, 953 i
3,492
3,261
200
12, 293
4,927
6,016
1,350
7,943
3,905
2,556
1,482
Percent
New loans,
change,
August
July 1941
1940
to August
1941
-2.4%
+ 1.8
-2.0
-15. 1
$117, 622
50,305
46, 807
20, 510
12, 267
4,074
6,066
2, 127
-3.5
+ 0.8
-4. 1
-11.7
-8.8
+ 6.4
-7.4
-22. 3
-7.4
-2. 1
-3.5
-15. 5
+ 8. 0
+ 14. 1
+ 4. 1
-5.5
-6.2
-4.8
-5.8
-11. 5
+ 6.5
+ 4. 5
+ 10.4
-14. 5
-7.3
+ 2. 8"
-8. 1
-29. 7
+ 6.6
+ 1.9
+ 9.6
+ 14. 8
-5.4
-1.2
-2.0
-73. 1
+ 19. 6
+ 27.3
+ 15. 2
+ 5.9
-7.2
-8.8
+ 3.9
-43. 8
-8.8
-11.0
-5.4
-10.0
11, 816
3,734
3,092
4,990
8,992
3,461
- 2, 298
3,233
16, 525
8,852
6,044
1,629
20, 458
7,389
9,959
3, 110
6,246
3,216
2,698
332
12, 080
4,743
5,667
1,670
7,044
3,704
2,031
1,309
5,334
2, 168
2,988
178
|
1
Percent
change,
August
1940 to
August
1941
Cumulative new loans (8 months)
1941
+ 1 0 . 3 % $915, 855
393, 835
+ 14.5
383, 721
+ 16.5
138, 299
-14. 2
+ 18.7
+ 27.7
+ 24. 9
-16.3
+ 3.5
+ 14.9
+ 31. 9
-22. 5
+ 8. 9
+ 15.6
+ 7.0
+ 2.9 |
+ 14.3 1
+ 7.4
+ 29. 9
-6.7
+ 3.8
+ 8.9
+ 5. 1
-12.1
+ 11.3
+ 8.6
+ 20. 9 1
-39.8
+ 1.8
+ 3. 9
+ 6.2
-19. 2
+ 12. 8
+ 5.4
+ 25. 8
+ 13.2
+ 18. 8
+ 26.3
+ 17.3
-46.6
94, 711
32, 779
48, 092
13, 840
87, 524
25, 499
26, 928
35, 097
71,617
28, 049
18, 797
24, 771
70, 551
21, 444
20, 118
28,989
62,461
23, 942
15, 645
22, 874
510
274
429
807
114,915
55,975
44,486
14, 454
157,
58,
78,
20,
46,
23,
21,
1,
92,
35,
43,
12,
119
593
433
093
867
900
195
772
425
747
939
739
132, 356
49, 119
63,239
19,998
50,
25,
16,
8,
44,
19,
24,
1,
461
332
531
598
919
019
789
111
48, 847
23, 664
14, 732
10, 451
40, 839
16, 366
22, 815
1,658
35, 264
18, 474
7,970
8,820
27, 991
17, 322
37, 037
20, 441
8,854
7,742
249
+ 12.9
+ 23. 6
+ 4.1
-34.9
8, 139 |
4, 346
3, 537
256
+17.6
+ 28. 2
+12. 1
-85.9
33, 918
22, 193
10, 664 1
1,061 |
73, 747
41, 009
32, 070
668
863
366
070
427
858
252
357
$790, 284
338, 315
314,415
137, 554
72, 288 i
25,041
35,052
12, 195
125,
61,
53,
10,
+ 14.4
+ 32. 1
+ 30.7
-27. 2
4,
2,
1,
1,
3,
2,
1,
1940
40, 673
19, 714
18,611
2,348
81, 408
32, 409
36, 119
12, 880
9, 469
1,
62,
34,
26,
1,
200
691
845
159
687
Percent
change
+ 15.9%
+ 16.4
+ 22. 0
+ 0. 5
+ 31.0
+ 30.9
+ 37.2
+ 13. 5
+ 24. 1
+ 18.9
+ 33. 9
+ 21. 1
+ 14.7
+ 17.2
+ 20. 1
+ 8. 3
+ 9.2
+ 9.5
+ 20. 1
-25. 2
+ 18. 7
+ 19.3
+ 24.0
+ 0. 5
+ 15. 2
+ 21. 2
+ 13.9
-24. 5
+ 13. 5
+ 10.3
+ 21. 7
-1. 1
+ 3.3
+ 7.0
+ 12.2
-17. 7
+ 10.0
+ 16.2
+ 8.7
-33.0
+ 5. 0
+ 10.6
+ 11. 1
-12. 2
+ 21. 2
+ 28. 1
+ 12. 6
-11. 6
+ 17. 6
+ 17.7
+ 22.6
-60.4
Federal Home Loan Bank Review
Table 8.—Summary of estimated nonfarm mortgage recordings/ $20,000 and under, during
September 1941
(A
F e d e r a l Home Loan Bank
D i s t r i c t and S t a t e
S a v i n g s & Loan
a s s o c i at i o n s
Number Amount
I n s u ranee
comp a n i e s
Number Amount
mounts
shown
i i
are
thousands
d o l lars)
of
Mutual
Banks and
Indiv lduals
t r u s t companies s a v i n g s banks
Number Amount Number Amount
Number Amount
Other
mortgages
Number Amount
Total
Number
Amount
Amount
per
capita
(nonfarm)
50,057 $139,156 7,298 $35,995j 30,731 $105,153 1,990 $19,213 31,161 $69,002 17,510 $59,580 111,717 $128,099j
UNITED STATES
No. I—8oston
1,309
150
151
3,138
193
255
119
11,719
211
I ,393
1,007
3,825
2,666
9,518 2,725
6,262
619
2,258
11,567
38,005
1,811
318
10,700
512
985
333
117
20
61
891
87
317
13
65
111
112
331
33
67
20
1,882
332
1,312
38
237
21
631
163
1,503
151
122
93
2,512
727
151
112
5,131 1,515
91
170
180
371
58
289
1,766
231
3,613
171
338
107
1,502
108
190
57
66
35
10,127
1,521
21,923
1,281
2,065
788 |
17,811
$1.61
6.86
2.13
5.31
3.18
3.08
3.19
No. 2—New York
New Jersey
New York
3,218
1,128
1,790
11,238
1,501
L 6,731
117
218
199
2,112
1,211
1,198
2,539
1,161
1,078
10,506
5,975
1,531
1,616
119
1,197
7,313 3,837
602 1,510
6,711 2,327
9,230
373
10
156
18
21
II
1,816
7,082
2,772
610
6,707
189
658
301
13,533
3,793
5,137
917
899
3,100
3,682
5,713
7,790
19,188
28,323
1.98
2.39
No. 3 — P i t t s b u r g h . .
3 r 227
22
2,787
118
8,282
71
7,358
853
598
57
2,181
620
9,729
211
7,533
1,952
229
27
199
72
2,569
118
2,073
318
2,858
Delaware _
Pennsylvania
West V i r g i n i a
17
207
5
891 2,172
72
63
820 1,713
2
396
5,210
131
1,391
715
1,078
15
883
180
3,982
10
3,631
311
10,162
201
8,270
1,691
30,696
709
25,806
1,181
3.70
2.91
3.27
No. 1—Winston-Salem
7,105
19,383
1,111
5,128
2,852
8,889
59
197 5,095
9,852
2,507
6,697
18,729 "~50",fl6
270
597
672
832
1,526
1,571
303
1,331
511
3,225
2,327
1,778
1,215
3,887
736
2,671
118
99
627
675
257
120
786
719
635
131
1,016
1,322
206
195
535
1,105
1,516
1,112
3,178
7,076
392
131
58
101
20
156
1,653
703
281
119
127
613
391
658
282
395
127
619
1,311
1,182
917
1,120
356
2,105
732
802
579
951
215
750
1,619
913
1,121
1,303
503
1,695
105
512
213
362
117
137
1,136
978
611
1,000
126
876
2,595
2,968
2,717
3,383
812
3,296
8,109
5,581
7,732 i
8,029 ,
2,118 !
7,990
8,111
23,803
915
1,660
3,650
12,722
166
662 2,651
1,511
1,696
5,021
17,222
51,115
1,121
6,737
283
2,727
20,116
630
113
516
226
657
3,127
876
112
2,522
686
1,391
9,289
2,012
166
155
662 2,005
191
201
3,795
518
106
853
737
283
2,896
1.815
1,970
12,829
2.123
5,259
10,215 1
5.911
6—Indianapolis
3,737
8,237
871
3,982
3,771
10,686
18
22 • M i l
2,921
1,155
1,360
10,970
30,211
Indiana
Michigan
2,526
1,211
5,029
3,208
389
185
1,706
2,276
1,308
2,166
3,925
6,761
18
22
130
982
751
2,170
281
871
826
3,531
1,952
6,018
12,262
17,919
No. 7—Chicago
1,731
11,123
119
2,158
1,981
7,636
13
20 2,267
5,169
1,853
8,208
11,297
37,311
111inois
W i scons in
3,198
1,233
10,616
3,507
310
139
1,579
579
1,178
806
5,015
2,591
13
1,270
20
997
3,030
2,139
1,622
231
7,118
760
7,878
3,119
27,718
9,596
1.18
1.66
3,968
992
1,163
1,307
151
55
9,287
2,121
3,835
2,918
350
63
613
100
275
208
27
33
3,297 2,605
135
637
1,399
655
1,181 1,151
58
110
101
139
6,761
1,511
1,507
3,123
136
(81
1,133 1,835
230
710
1,371
291
1,769 1,275
92
17
19
158
5,701
11,650
633
1,125
3,882
17
11
2,123
3,169
5,119
316
293
29,338
5,113
9,396
13,176
735
588
3.65
5.63
5.21
2.59
1.91
No. 9 — L i t t l e Rock
_
Arkansas
Louisiana
Mississippi _ .
New Mexico
Texas
3,289
303
958
179
67
1,782
8,193
S20
3,185
355
126
1,207
862
12
139
60
3,756
166
592
219
2,115
262
103
280
83
1,117
1,317
330
816
123
173
2,515
1,851
125
1,226
207
2,719
2,912
112
302
387
179
1,332
1,721
62
119
81
621
991
200
121
111
132
391
1,159
3,296
9,311
869
2,010
717
282
5,373
21,362
1,683
6,151
1,621
778
11,129
2.29
1.81
2.51
2.91
1.07
No. 10—Topeka
3,015
6,509
288
1,276
979
2,195
1,691
2,168
929
2,860
6,902
15,608
336
901
977
1,823
791
1,751
908 ! 2,031
28
51
152
57
157
229
658
232
133
135
95
316
303
1,011
355
826
627
271
287
503
1,156
356
101
555
268
219
101
338
928
601
278
1,053
1,392
1,956
1,132
2,122
3,115
1,020
3,116
1,697
1,185
1,302
3,357
101 1,322
1,996
996
3,396
5,953
15,027
60
65
198
279
651
16
211
218
507
831
1,150
107
111
22
211
11
516
29
103
86
887
80
1,835
105)
113
369
1,529
702
2,687
223
Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont
.
.
Alabama _ _
D i s t r i c t of Columbia
Florida
Georgia
_ _ _
Maryland
North Carolina
South Carolina
Virginia.
No. 5—Cincinnati
Kentucky .
Ohio
Tennessee
No.
_ _ _
_.
_ _
_ _
No. 8—Des Moines
Iowa
. _ __
Minnesota
Missouri
North Dakota
South Dakota __
_ _
.
.
Colorado
Kansas
Nebraska
Oklahoma
No. I I — Portland
Idaho
Montana
Oregon
Utah
Washington
Wyoming
No.
12—Los Angeles
.
1,881
1,692
300
98
121
100
255
930
77
280
335
1,021
711
2,071
235
20
16
113
20
131
-
62
71
131
66 !
519
1
59
11
11
197
156 2,555
161
156
738
1,205
63
85
::::: -----
119
1
,7
11
132
357
121
112
557
107
321
71 L _
171
255
725
161
571
107
1,163
968
3,621
1,882 1
6,839
551
2.66
11.55
6.82
3.75
5.55
5.11
2.61
5.13
3.66
7.11
1.21
5.06
1.12
1.58
3.12
1.35
3.12
1.53
2.91
1.96
1.80
5.13
3.63
570
10,360
1,179 6,190 25,602
5,989 12,867 1,272
5,158 17,151
58,166
105
10
303
10
126
169
257
516
37
61
535
1,119
1.22
3.301
9,990
558'
1,130 6,036 25,029
5,675 12,199 1,227
5,083 16,797
56,131
11.16
21
2
67
101
9
28
57
8
122
11
3(6 I
119
1.23
1
Based upon county reports submitted through the cooperati on of savings and loan associations, the U. $, Savingr and Loan league, the Mortgage
Bankers Association, and the American Title Association
Arizona
California
Nevada
November 1941
3,130
jE
63
Table 8a.—Summary of estimated nonfarm mortgage recordings/ $20,000 and under, during
August 1941
F e d e r a l Home Loan Bank
D i s t r i c t and S t a t e
Amount
per
capita
(nonfarm)
5,197 $20,802 34,982 $70,377 18,295 $61,034 146,170 $424,929
1 $4.60
49,262 $135,754
UNITED STATES
No.
(Amoun t s s hown a r e i n t h o u s a n d s of d o l l a r s )
Other
Mutual
Banks and
Insurance
Savings & loan
Total
I n d i v i d u a l s ) mortgagees
t r u s t companies s a v i n g s banks
companies
assQci a t i o n s
Amount
Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount Number
I—Boston
7,433 $36,250 31,001 $100,712
3,925
13,449
273
1,542
1,075
4,103
378
177
2,925
130
235
80
1,519
461
9,981
369
893
226
207
14
39
4
6
3
1,183
65
242
15
28
9
440
103
329
76
80
47
2,838 To,412
2,793
6,500
478
663
157
1,470
243
J 56
149
2,908
380
5,402
757
500
465
801
126
1,5a?
121
164
74
2,167
181
3,450
233
326
143
242
32
145
4
52
3
3,232
11,718
538
3,025
2,638
1,940
321
1,249
198
273
122
11,213
1,613
7,655
3,958
9,829
1,721
New J e r s e y
New York
1,259
1,973
4,399
7,319
271
267
1,405
1,620
1,414
1,224
6,264
4,949
116
1,497
516
7,139
1,495
2,463
3,892
5,937
908
813
No. 3 - - P i t t s b u r g h
3,570
9,555
383
1,899 ^ , 9 5 2 ~ 9,267
308
1,178
2,319
5,851
1,087
Delaware
Pennsylvania
West V i r g i n i a
23
3,184
363
73
8,752
730
28
319
36
153
1,558
188
59
2,256
637
252
7,603
1 ,M»I2
18
283
7
74
1,101
3
65
1,804
450
138
4,531
1,182 |
6,815
18,403
1,279
5,478
2,761
7,923
282
540
776
858
1,445
1,292
262
1,360
500
2,953
2,693
1,911
3,852
3,004
'645
2,845
206
90
368
164
70
150
44
187
753
607
1,475
872
338
598
145
690
267
85
354
638
273
288
196
660
603
538
1,082
1,064
999
941
443
2,253
8^830
25,111
860~
4,519 T , 9 3 2
11,834
1,040
7,178
412
2,449
21,937
725
142
479
239
678
2,853
< 988
441
2,528
963
1,436
8,437
1,961
3,827
8,422
821
3,994
3,768
10,618
2,615
1,212
5,204
3,218
364
457
1,700
2,294
1,243
2,525
3,507
7,IH
4,628
13,426
494
2,464
2,147
8,129
10
3,590
1,038
10,513
2,913
354
140
1,878
586
1,382
765
5,858
2,271
4,104
9,342
719
3,466
2,694
6,659
958
1,530
1,379
162
75
2,029
3,972
2,797
423
121
148
291
212
35
33
672
1,331
1,194
154
115
667
606
1,239
60
122
1,596
1,283
3,436
78
266
2,758
251
742
169
62
1,534
7,060
486
2,564
313
123
3,574
937
41
194
78
4,146
162
974
290
624
2,720
956
168
97
138
92
461
2,865
326
258
294
309
1,678
2,965
6,032
305
1,330
J,041
400
854
726
985
1,023
1,601
1,385
2,023
46
64
183
405
125
70
277
275
474
304
1,885
4,526
292
124
127
446
242
860
86
260
320
1,065
710
1,935
236
13
II
104
48
112
4
2,923
8,710
112
2,786
25
339
8,295
76
Connecticut _
Maine
_
Massachusetts
New Hampshire
Rhode Island
Vermont ^
_
.
.
No. 2—New York
-
._
_
No. 4—Winston-Salem
Alabama
D i s t r i c t of Columbia
Florida
.
Georg ia
Maryland
North C a r o l i n a
South C a r o l i n a
V i r g i n ia
No., 5—Cincinnati
»
.
. . .
Kentucky
Ohio
Tennessee
i
No. 6 — I n d i a n a p o l i s
Indiana.
Michigan
«
.
.
_
No. 7—Chicago.
II1 i n o i s
Wisconsin
_
...
.
No. 8--Des Moines
Iowa
Minnesota
_
Missouri
North Dakota .
South Dakota _ .
_
_
No. 9 — L i t t l e Rock
Arkansas
Lou is iana
Miss iss ipp i
New MexicoTexas.
'__
No. 10—Topeka
Colorado
Kansas
Nebraska.
Oklahoma
Ho.
__
II—Portland
1 daho
Montana
Oregon. _
Utah
Wash i ngton
Wyoming
_
_
.
No. 12—Los Angeles
Arizona
Cal i f o r n i a
Nevada
_
1
. .
. _
.
15
899
173
1,757 11,382
37,763
2,736
609
6,415
578
693
356
10,705
1,498
20,795
1,584
2,208
973
988
90
471
12
188
8
6,909 13,700
50,349
3,546
3,363
5,463
8,237
20,022
30,327
4,|N
10,619
31,861
41
3,678
392
208
8,745
1,666
731
27,223
3,907
8,005 19,046
49,750
7.04
2.39
5.04
3.94
3.29
3.94
5.12
2.56
3.81
3.10
3.05
I78~ 5,145
9,763
27993
556
428
807
873
548
910
174
849
805
1,307
1,783
1,151
1,401
1,111
333
1,872
348
188
507
568
203
377
175
627
[49"
60T ~27736~
4,883
1,797
5,385 18,104
52,333
149
601
175
2,087
474
206
4,082
595
94
797
906
276 1,892
2,750 13,218
2,359 2,994
5,045
40,660
6,628
23
55
1,429
2,881
1,308
4,976 11,176
30,946
23
55
458
971
706
2,175
300
1,008
868
4,108
21
2,590
5,818
2,077
9,205 11,946
39,063
10
21
1,419
1,171
3,396
2,422
1,842
235
8,472
733
8,587
3,359
30,117
8,946
39
131
2,742
4,173
1,835
5,552 12,133
29,323
474
793
1,271
99
105
691
1,498
1,689
147
148
289
293
1,204
17
32
829
1,038
3,593
53
39
2,536
3,552
5,305
373
367
5,817
9,253
12,709
855
689
2,480
256
436
257
64
1,467
4,207
292
948
348
154
2,465
1,838
82
371
136
62
1,187
5,053
137
999
307
43
3,567
8,969
798
1,840
778
280
5,273
23,331
2,430
1,711
2,755
1,120
3,142
7,142
I5,68~9j
509
330
296
576
1,279
309
389
241
493
674
106
384
862
795
248
1,237
1,527
1,894
80
373
495
833
240
862
1,333
2,388
3,936
3,813
2,840
5,100
1,160
1,303
3,385
l7280"
1, 923~
847
2,767
5,771
14,332
47
46
506
163
394
4
54
84
181
321
627
36
213
257
413
970
1,400
132
141
135
500
87
341
76
186
299
694
146
462
136
80
25
225
48
429
40
262
62
735
100
1,482
126
412
382
1,473
746
2,516
242
968
984
3,487
2,089
6,170
634
1
4.16
532
3,227
5,734
22,286 - T T ^ T -ZZZZ7 ~57799~ 11,794
1,194
4,172 16,182
50,189
12
517
3
73
3,138
16
131
5,574
29
463
21,720
103
18
1,172
4
27
520
4,139 15,546
6
116
1,401
48,476
312 j 1
4.16
9.59
53~
53
39
178
131
—-
164
571
17
74
147
497
:::::
247
5,497
55
499
11,184
III
832
953
1,607
1,044
619
1,009
527
1,414
1,659
1,331
2,812
3,101
2,592
3,017
851
3,683
5,003
6,173
3,493
6,358
8,640
6,042
7,387
6,663
2,093
9,074 | !
2.67
1.31
7.27
4.06
5.30
4.24
2.55
6.17
3.51
J.22
4.73
12,040
18,906 I
4.96
5.66
5.54
4.35
3.90
5.55
5.05
3.02
2.28
1,403 j
1.91
4.52
2.40
2.38
4.03
5,743 |
1,552
629
14,004
5.23
3.25
3.58
3.72
3.77
2.95
4.78
5.33
4.90
«*. f 8
Based upon county reports submitted through the cooperation of savings and loan associations, the U. S. Savings and Loan League, the Mortgage
Bankers Association, and the American Title Association.
64
Federal Home Loan Bank Review
Table 9.—Estimated volume of nonfarm mortgages recorded, by type of mortgagee
[Amounts are shown in thousands of dollars]
Savings a n d
loan associations
Insurance
companies
Mutual
savings
banks
Banks a n d
trust
companies
Individuals
All
mortgagees
Other
mortgagees
Period
Total
Percent
45,
48,
39,
37,
35.5
34.8
33.5
32.8
6,091
6,977
5,816
5,736
34, 459 3 1 . 4
1941: J a n u a r y
34, 909 3 2 . 6
February.—
42, 496 3 4 . 2
March. _
48, 266 3 4 . 6
April
52, 802 35. 1
May
June
_ . 50, 393 3 6 . 0
51, 882 3 4 . 4
July
50, 057 3 4 . 6
August r
49, 262 3 3 . 7
September _
Amount:
1940 S e p t e m b e r - $117,928 3 3 . 0
October
125, 009 3 2 . 2
N o v e m b e r . . 102, 267 3 1 . 2
D e c e m b e r . _ 98, 765 3 0 . 2
5,523
4,753
5,651
6,583
7, 190
7,655
7,602
7,298
7,433
Number:
1940: S e p t e m b e r October
November—
December. _
1941: J a n u a r y
February. —
March
April
May
June
July
_
August r
September _
r
595
145
180
984
89, 996
91, 182
113,574
129, 348
143, 770
139, 647
142, 695
139, 156
135, 754
29.3
30.7
32.6
32.5
33.0
32.4
32.2
32. 5
31.9
Total
Total
Percent
4.7
5.0
5.0
4.9
27,
31,
25,
25,
924
202
988
837
21.7
22.5
22.3
22.3
4,257
4,548
4,024
3,847
5.0
4.4
4.5
4.7
4.8
5.2
5.0
5.0
5. 1
24, 204
23,711
26, 820
30, 065
32, 148
32,769
32, 343
30, 731
31, 001
22. 1
22. 1
21.6
21.6
21.4
22. 1
21.4
21.2
21.2
3,392
2,985
3,571
4,512
5,258
5,437
5,469
4,990
5, 197
Percent
Total
$29,
33,
27,
28,
401
818
900
666
8 . 2 $89, 051 2 4 . 9 $15, 566
8 . 7 98, 462 2 5 . 3 16, 826
8 . 5 82, 971 2 5 . 4 15, 122
8 . 8 83, 426 2 5 . 5 14, 918
27,
23,
27,
32,
35,
37,
37,
35,
36,
691
716
842
313
635
372
262
995
250
9.0
8.0
8.0
8. 1
8.2
8.7
8.4
8.4
8.5
78,
74,
86,
98,
107,
107,
108,
105,
100,
977
526
178
076
151
827
555
153
712
25.7
25. 1
24.7
24.6
24.6
25. 1
24.5
24. 6
23.7
12,
11,
14,
16,
19,
20,
21,
19,
20,
931
662
016
888
705
503
080
213
802
Total
Percent
Combined
total
Per
cent
3 . 4 28, 164 2 1 . 9
3 . 3 30, 635 22. 1
3 . 4 27, 507 2 3 . 6
3 . 3 27, 823 2 4 . 0
16,
16,
14,
14,
391
975
239
680
12. 8
12.3
12.2
12.7
128,
138,
116,
115,
422
482
754
907
100.0
100.0
100.0
100.0
3. 1
2.8
2.9
3.2
3.5
3.7
3.6
3.5
3.6
13,
13,
14,
16,
17,
16,
18,
17,
18,
617
303
666
305
769
970
180
510
295
12.4
12.4
11.8
11.7
11.8
11.5
12.0
12. 1
12. 5
109,
107,
124,
139,
150,
147,
151,
144,
146,
689
144
194
525
342
837
110
747
170
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
4 . 4 $52, 936 1 4 . 8 $52,
4 . 3 59, 124 15. 2 55,
4 . 6 51, 504 15.7 47,
4 . 6 51, 964 15.9 48,
636
734
621
885
14.7
14.3
14.6
15.0
$357,
388,
327,
326,
518
973
385
624
100.0
100.0
100.0
100.0
44,
43,
47,
55,
59,
57,
61,
59,
61,
154
335
624
972
864
487
991
580
034
14.3
14.6
13. 6
14. 1
13.7
13.4
14.0
13.9
14. 4
307,
296,
348,
398,
435,
430,
443,
428,
424,
640
863
880
305
961
216
039
099
929
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Percent
4.2
3.9
4.0
4.2
4.5
4.8
4.8
4. 5
4.9
Percent
Total
28,
27,
30,
33,
35,
34,
35,
34,
34,
53,
52,
59,
65,
69,
67,
71,
69,
70,
26.0
25.7
25.0
24.2
23.4
23.4
23. 6
23.6
23.9
494
483
990
794
175
613
634
161
982
17.5
17.7
17. 1
16.5
16.0
15.6
16. 1
16. 1
16.6
891
442
646
708
836
380
456
002
377
revised.
Table 10.—Estimated nonfarm real estate foreclosures, by size of county
Table 11.—Property operations of the H ome
Owners' Loan Corporation
C o u n t y size (dwellings)
Period
U. S.
total
Less
than
5,000
5,000- 20,000- 60,000
and
19,999 59,999
over
1940: J a n - S e p t
September
October _
November
December
57, 534 5, 829
6,294
539
6,305
618
5,832
603
5,639
635
8. 608 12,029 31, 068
1,018
1,355 3,382
897
1,319 3,471
832
1,343 3,054
819
1, 103 3,082
1941: J a n . - S e p t
January _ «
February _
March
April
May
June
July
August.
September
45, 378 4 , 9 5 2
607
5,474
526
4,950
621
5,650
587
5,445
630
5,375
630
5,047
437
4,834
399
' 4 , 251
515
4,352
6,939
800
789
870
853
837
727
741
r
668
654
r
revised.
November 1941
9, 744 23, 743
1, 180 2 , 8 8 7
1,009 2,626
1, 191 2, 968
1, 119 2,886
1,236 2,672
1, 149 2,541
959 2, 697
' 9 4 8 2,236
953 2,230
Number
of p r o p erties
acquired 1
Period
1940: September
October.
November.
December.
_.
1941: J a n u a r y . _
February.. .
March
. . .
April
May
June. _
July
August
September
1
r
Number
of properties
sold
Number
of properties
on h a n d at
end of
month
1,701
1,719
1,728
1,580
3,619
3,886
3,253
2,706
56,
54,
52,
51,
1,638
1,340
1,327
1,226
1, 080
1,270
803
r
665
681
2,425
2,223
2,369
2,464
2,458
2,296
1,788
1,793
1,790
50, 865
49, 940
48, 856
47, 588
46, 170
44, 922
43, 933
42, 807
41,698
598
433
878
722
Includes reacquisitions of properties previously sold.
revised.
65
Table 12.—Progress of institutions insured by the Federal Savings and Loan Insurance Corporation
[Amounts are shown in thousands of dollars]
Operations
Period a n d class
of association
Number of
associations
Total
assets
Net first
mortgages
held
Private
repurchasable
capital
Government
investment
Federal
Home
Loan
Bank
advances
N u m b e r of
investors
New
private
investments
Private
repurchases
New
mortgage
loans
ALL INSURED
1939: J u n e
December-
2, 170 $ 2 , 3 3 9 , 4 1 1 $1,769, 112 $1, 657, 859 $259, 943 $127, 062
2, 506, 944 1, 943, 852 1,811, 181 250, 725 142, 729
2,195
1940: August
September.
October
November.
December.
2,248
2,259
2,264
2,269
2,276
2,
2,
2,
2,
2,
742,
789,
832,
867,
931,
287
391
083
817
781
2,
2,
2,
2,
2,
208,
250,
291,
317,
342,
016
905
477
292
804
2,
2,
2,
2,
2,
059,
085,
114,
143,
202,
097
410
831
360
135
220,
220,
220,
220,
220,
081
569
629
689
789
136,
144,
150,
154,
171,
244
997
700
802
347
2,
2,
2,
2,
2,
634,
664,
695,
706,
772,
300
200
800
300
400
1941: J a n u a r y . .
February..
March
April
May.. .June
July
August
2,282
2,289
2,292
2,297
2,302
2,310
2,313
2,319
2,
2,
2,
3,
3,
3,
3,
3,
929,
959,
991,
034,
079,
158,
154,
185,
247
330
565
528
396
251
228
814
2,
2,
2,
2,
2,
2,
2,
2,
359,
384,
416,
457,
501,
554,
595,
636,
057
160
680
438
582
274
114
536
2,
2,
2,
2,
2,
2,
2,
2,
262,
296,
323,
354,
379,
433,
449,
465,
692
225
041
239
856
513
807
223
216,
206,
206,
206,
206,
206,
203,
195,
485
015
094
078
304
301
512
572
141, 450
129, 437
119,461
115,372
119,242
114,331
142, 870
147, 044
2,
2,
2,
2,
2,
2,
2,
3,
802,
869,
896,
924,
943,
974,
998,
019,
700 127, 490
500 65, 384
100 64, 633
000 65, 947
300 57, 755
500 61, 448
100 103, 886
600 62, 374
1939: J u n e
December.
1,383
1,397
1, 441, 058
1, 574, 314
1,135,511
1, 268, 872
990, 248
1, 108, 481
217, 026
208, 777
88, 298
105, 870
1, 299, 100
1, 412, 200
27, 000
32, 000
1940: August
September.
O c t o b e r . _.
November
December.
1,427
1,430
1,433
1,435
1,438
1,
1,
1,
1,
1,
750,
775,
804,
829,
872,
870
555
397
939
691
1,
1,
1,
1,
1,
461,
487,
514,
532,
545,
440
489
872
745
838
1,
1,
1,
1,
1,
297,
309,
329,
349,
387,
572
421
364
761
839
181, 256
181,261
181, 371
181,381
181, 431
99, 985
106, 674
110, 583
114,070
127, 255
1,
1,
1,
1,
1,
100
400
800
600
200
34,
31,
37,
34,
44,
871
184
309
092
531
22, 643
19,414
18, 583
14, 867
12, 135
50,
46,
48,
38,
37,
1941: J a n u a r y __
February..
March
April
May _ - June _ _ .
July1
August2- —
1,439
1,441
1,442
1,445
1,447
1,450
1,452
1,454
1, 872,
1, 890,
1, 915,
1, 945,
1, 977,
2, 028,
2, 022,
2, 049,
744
266
054
949
162
045
886
184
1,
1,
1,
1,
1,
1,
1,
1,
563,
577,
599,
627,
656,
687,
715,
749,
038
498
592
545
899
088
819
214
1, 436,
1, 458,
1, 480,
1, 504,
1, 522,
1, 554,
1, 565,
1, 579,
443
840
866
271
675
374
799
671
177,
168,
168,
169,
169,
169,
166,
159,
265
873
922
047
247
247
464
622
102, 973
92, 558
84, 810
81,076
83, 674
103, 696
102, 513
106,624
1, 709, 800
1, 736, 900
1, 758, 400
1, 780, 100
1, 792, 700
1, 806, 200
1, 822, 700
1,841,600
87,
45,
44,
45,
38,
40,
70,
40,
950
587
390
058
423
030
290
730
49,
23,
23,
23,
20,
14,
61,
30,
852
131
618
376
582
530
061
443
34, 360
35, 645
45, 365
51,371
55, 396
57, 542
56, 564
57, 592
936, 900
973, 800
13, 700
16,400
7,700
8, 214
16, 754
15, 463
2, 236, 000 $40, 700 $15, 800 $55, 848
2, 386, 000 48, 400 17, 445 49, 516
51,
46,
53,
49,
65,
025
203
982
990
586
36,
30,
30,
25,
22,
060
928
286
278
865
72,
68,
71,
57,
56,
214
665
380
686
363
75, 228
37, 081
39, 605
39, 194
35, 122
26, 779
90, 728
48,010
52, 270
53, 765
69, 313
77, 735
82, 443
85,117
84, 994
84, 794
8, 100
9,231
39, 094
34, 053
FEDERAL
591,
602,
624,
627,
665,
305
480
307
896
715
STATE
898, 353
932, 630
633, 601
674, 980
667,611
702, 700
42, 917
41, 948
38, 764
36, 859
991,417
013, 836
027, 686
037, 878
059, 090
746,
763,
776,
784,
796,
576
416
605
547
966
761,
775,
785,
793,
814,
525
989
467
599
296
38,
39,
39,
39,
39,
825
308
258
308
358
36,
38,
40,
40,
44,
259
323
117
732
092
1,
1,
1,
1,
1,
043,
061,
071,
078,
107,
200
800
000
700
200
16, 154
15,019
16, 673
15, 898
21,055
21, 909
13,417
11,514 | 22, 185
11,703 23, 073
10,411
18, 790
10, 730 18, 648
1, 056, 503
1, 069, 064
1,076,511
1, 088, 579
1, 102, 234
1, 130, 206
1, 131, 342
1, 136, 630
796,
806,
817,
829,
844,
867,
879,
887,
019
662
088
893
683
186
295
322
826,
837,
842,
849,
857,
879,
884,
885,
249
385
175
968
181
139
008
552
39,
37,
37,
37,
37,
37,
37,
35,
220
142
172
03*1
057
054
048
950
38,
36,
34,
34,
35,
40,
40,
40,
477
879
651
296
568
635
357
420
1, 092,
1, 132,
1, 137,
1, 143,
1, 150,
1, 168,
1, 175,
1, 178,
900
600
700
900
600
300
400
000
39, 540
19, 797
20, 243
20, 889
19, 332
21,418
33, 596
21, 644
25,
13,
15,
15,
14,
12,
29,
17,
1939: J u n e
December.
787
798
1940: A u g u s t . . .
September.
October
November.
December.
821
829
831
834
838
1,
1,
1,
1,
1941: J a n u a r y __
February..
March
April
May
June
July..
August
843
848
850
852
855
860
861
865
376
950
987
818
540
249
667
567
17,910
18, 120
23, 948
26, 364
27, 047
27, 575
28, 430
27, 202
i In addition, 4 converted Federals with assets of $2,134,000 were not insured as of July 31, 1941.
2 In addition, 5 converted Federals with assets of $2,201,000 were not insured as of August 31,1941.
66
Federal Home Loan Bank Review
Table 14.—Government investments in savinss and
loan associations 1
Table 13.—Lending operations of the Federal
Home Loan Banks
[Amounts are shown in thousands of dollars]
[Thousands of dollars]
September 1941
Federal H o m e
Loan Bank
Treasury
Advances
$1, 119
2,712
789
1, 94\9
545
527
1,790
803
440
491
450
1,235
Total
12, 850
$493
660
626
566
1,090
433
1,707
285
324
261
304
538
7,287
$805
1,259
1, 109
1,615
693
361
1,678
573
723
525
395
1, 136
10, 872
$113
650
698
859
702
171
1, 198
250
458
133
479
679
FederFederals
als 2
Oct. 1935—Sept. 1941:
Applications:
Number
Amount
Investments:
Number
Amount
Repurchases
N e t outstanding investments
$9, 950
20, 108
16, 303
22, 001
15, 052
10, 906
28, 493
15, 352
8,621
8,549
6, 645
16,211
176, 047
State
members
Total
1,862
4,673
5, 668
995
$50, 401 $209, 721 $65, 932 $275, 653
1,831
4,220
740
4, 960
$49, 300 $176, 935 $45, 589 $222, 524
$28, 016 $38, 605 $9, 396 $48, 001
$21, 284 $138, 330 $36, 193 $174, 523
September 1941
Applications:
Number
Amount
Investments:
Number
Amount
Repurchases
6,390 178, 191
1941___ 94, 364 117, 665
1940__ 12, 897 5, 251
1940___ 89, 759 95, 025
1939___ 60, 625 95, 780
1939
10, 152 5, 935
H o m e Owners' Loan
Corporation
T y p e of operation
standing
RepayAdAdRepaySepvances ments vances ments tember
30,1941
Boston
New York
Pittsburgh
Winston-Salem
Cincinnati
Indianapolis
Chicago
Des Moines
Little Rock
Topeka
Portland
Los Angeles
. _
Jan.-Sept.
September
Jan.-Sept.
Jan.-Sept.
September
August 1941
0
0
5
$425
2
$75
7
$500
0
0
0
0
0
$8
I!
1
• $25
$5
1
$25
$13
163, 687
1
Refers to number of separate investments, not to number of associations in
which investments are made.
m
2 Investments in Federals by the Treasury were made^between December 1933
and November 1935.
Table 15.—Changes in selected types of private long-term savings
[Amounts are shown in thousands of dollars]
Amounts o u t s t a n d i n g at en d of m o n t h
A m o u n t s sold during m o n t h
Period
Life insurance 1
1940: September
October
November
December
1941: J a n u a r y
February
March
April
May
J u n e __ __ _
July
August
September
$503,
573,
505,
596,
522,
537,
598,
597,
604,
594,
582,
581,
581,
U.S.
savings
bonds 2
Insured
U. S. savings
savings
bonds 4
and l o a n s 3
427 $47, 122
504 52, 221
474 50, 080
534 82, 207
$46,
53,
49,
65,
203
982
990
586
$3,
3,
3,
3,
043,
084,
123,
194,
626
021
036
793
762
557
217
203
162
164
292
171
998
127, 490
65, 384
64, 633
65, 947
57, 755
61,448
103, 886
62, 374
3,
3,
3,
3,
3,
3,
3,
4,
4,
371,
480,
598,
647,
758,
853,
992,
102,
199,
135
040
546
249
822
297
095
528
539
1, 313, 954
1, 317, 794
1, 319, 959
1, 317, 102
1, 310, 027
1, 304, 041
1, 306, 928
1, 308, 839
1, 311,060
+ 16.70%
- 0 . 68%
189, 276
120, 680
131,961
61, 968
101,581
102, 517
145, 274
117,603
105, 291
Change: Last 6 monthsi Life Insurance Sales Research Bureau. Face amount of policies sold, excluding group insurance.
» U. S. Treasury Daily Statement. Cash sales, including unclassified sales.
From May 1941: Defense Savings Bonds, Series E. (May figure is revised).
3 New private investments; amounts paid in as reported to the FHLBB.
< U. S. Treasury Daily Statement. Current redemption value. From May
1941: Defense Savings Bonds, Series E.
November 1941
Postal
savings5
Mutual
savings
banks 6
Insured
commercial
banks 7
Insured
savings
a n d loans '
$1,295,432
$2, 085, 410
1, 295, 859
2, 114, 831
1, 298, 429
2, 143, 360
1, 304, 382 $10, 617, 759 $13, 062, 315 2, 202, 135
10, 606, 224
13, 107, 022
- 0 . 11%
+ 0. 3 4 %
2,
2,
2,
2,
2,
2,
2,
2,
262,
296,
323,
354,
379,
433,
449,
465,
692
225
041
239
856
513
807
223
+ 7.36%
5
U. S. Post Office Department. Outstanding principal, represented by certificates of deposit, excluding accrued interest, outstanding savings stamps, and
unclaimed deposits. Figures for the last two months are preliminary.
•7 Month's Work. All deposits.
FDIC. Time deposits evidenced by savings passbooks.
• Private repurchasable capital as reported to the FHLBB.
67
Resolutions of the Board
{Continued from p. 51)
graph 14 of paragraph (a) and in paragraph (d) of
Section 2.4 of the Rules and Regulations for the
Federal Home Loan Bank System, as follows: A
political or public office shall be deemed to mean
any office, "whether elective or appointive/' in
national, state, or municipal government, or on a
political party committee. "Compensation" is to
be considered as "any salary, fee, retainer, or other
form of compensation which is substantial." The
Federal Home Loan Bank Board will determine in
each case whether the compensation for a political or
public office is within the spirit of the foregoing
resolution.
AMENDMENT TO THE RULES AND REGULATIONS FOR
INSURANCE OF ACCOUNTS, RELATING TO THE ADJUSTMENT OF INSURANCE PREMIUMS WHEN ASSOCIATIONS
PURCHASE BULK ASSETS: Adopted October 6, 1941;
effective October 8, 1941.
The Resolution proposed by the Board in August,
providing for premium credits in the event of the
purchase of bulk assets, as well as in the event of
the merger or consolidation of insured institutions
as previously provided, was formally adopted by
the Board of Trustees on October 6, effective
October 8, 1941.
The last sentence of paragraph (c) of Section 301.13
of the Rules and Regulations for Insurance of Accounts is now amended to read as follows:
Provided, however, T h a t if t h e institution which is
absorbed b y applicant by such merger, consolidation
or purchase of bulk assets is an insured institution, t h e
applicant shall receive a credit upon its future premiums
of t h e unearned portion of a n y premium theretofore
paid to t h e Corporation by such absorbed institution.
AMENDMENT TO THE RULES AND REGULATIONS FOR
INSURANCE OF ACCOUNTS, RELATING TO THE ISSUANCE OF DEBENTURES IN PAYMENT OF INSURANCE:
Adopted October 20, 1941; effective October 22, 1941.
Under previous regulations, an insured investor in
a defaulted association had the option of receiving (1)
A new insured account in an insured institution not
in default, in an amount equal to the insured account
so transferred; or (2) The amount of his account
which is insured, as follows: 10 percent in cash, 45
percent in negotiable noninterest-b earing debentures
of the Corporation due 1 year from the date of the
68
default, and 45 percent in such debentures due 3
years from the date of default.
By Board resolution of October 20, the second
option is now amended so that the debenture issues
to an insured investor are due within 1 year and
within 3 years.
Section 301.19, subsection (b), .subparagraph (2),
now reads:
(2) The a m o u n t of his account which is insured, as follows: 10 percent in cash, 45 percent in negotiable noninterest-bearing debentures of t h e Corporation due within
1 year from t h e date of the default, a n d 45 percent in
such debentures due within 3 years from t h e d a t e of
default.
PROPOSED
PROPOSED
AMENDMENT
AMENDMENT
TO T H E
RULES AND
REGULA-
T I O N S FOR THE FEDERAL SAVINGS AND LOAN SYSTEM,
REGARDING THE NECESSITY FOR BOARD APPROVAL
BEFORE THE PURCHASE OF ASSETS, OFFICE BUILDINGS OR LAND THEREFOR.
The Federal Home Loan Bank Board, on October
13, proposed an amendment to subsection (b) of Section 203.13 of the Rules and Regulations for the
Federal Savings and Loan System. This subsection
now requires prior Board approval for certain purchases of loans. The proposed amendment would
require, as well, such approval for purchases from an
officer, director, or employee of the association; and
would also provide that the purchase of any part or
all of an office building or any land upon which such a
building is to be erected is subject to prior approval
of the Board.,
If this proposed amendment is formally adopted
by the Board, subsection (b) of Section 203.13 will
read:
(b) Purchase of assets. Federal associations shall
primarily engage in lending their funds, b u t m a y incidentally purchase loans of a t y p e which t h e y are perm i t t e d to m a k e ; provided t h a t , no Federal association
m a y purchase any mortgage from an affiliated institution
or from an officer, director or employee of t h e association,
or of a type t h a t it is not authorized to m a k e originally,
without t h e prior a p p r o v a l of t h e Board. N o Federal
association m a y purchase an office building, or any p a r t
thereof, or land upon which to erect an office building,
from an affiliated institution, or from an officer director
or employee of t h e association, w i t h o u t the prior approval
of t h e Board.
This proposed amendment will not be formally
approved until at least 30 days after it was mailed
to the Federal Savings and Loan Advisory Council.
(The amendment was mailed to council members on
October 21, 1941).
Federal Home Loan Bank Review
U. S . GOVERNMENT PRINTING O F F I C E : 1 9 4 1
FEDERAL HOME LOAN BANK DISTRICTS
—
$
BOUNDARIES OF FEDERAL HOME LOAN BANK OISTRICTS
FEDERAL HOWE LOAN BANK CITIES.
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
CHICAGO
B. J. ROTH WELL. Chairman; E. H. WEEKS, Vice Chairman; W. H
NEAVES, President; H. N. FAULKNER, Vice President; FREDERICK
C. E BROUGHTON, Chairman; H. G. ZANDER, JR., Vice Chairman; A. R.
GARDNER, President; J. P . DOMBIER, Vice President; H. C. JONES,
WINANT, Treasurer; L. E. DONOVAN, Secretary; P . A. HENDRICK,
Treasurer; CONSTANCE M. WRIGHT, Secretary; UNGARO & SHERWOOD,
Counsel.
Counsel.
NEW
YORK
GEORGE MACDONALD, Chairman; F . V. D. LLOYD, Vice Chairman;
NUGENT FALLON, President; ROBERT G. CLARKSON, Vice President;
DENTON C. LYON, Secretary; H. B. DIFFENDERFER, Treasurer; F. G.
STICKEL, JR., General Counsel.
PITTSBURGH
E. T. TRIGG, Chairman; C. S. TIPPETTS, Vice Chairman; R. H. RICHARDS, President; G. R. PARKER, Vice President; H. H. GARB EH,
Secretary-Treasurer; R. A. CUNNINGHAM, Counsel.
WINSTON-SALEM
H. S. HAWORTH, Chairman; E. C. BALTZ, Vice Chairman; O. K.
LAROQUE. President-Secretary; G. E. WALSTON, Vice President-Treasurer; Jos. W. HOLT, Assistant Secretary; T. SPRUILL THORNTON,
Counsel.
CINCINNATI
R. P . DIETZMAN, Chairman; WM. MEGRUE BROCK, Vice Chairman;
WALTER D. SHULTZ, President; W. E. JULIUS, Vice President; DWIGHT
WEBB, J R . , Secretary; A. L. MADDOX, Treasurer; TAFT, STETTINIUS
& HOLLISTER, General Counsel.
INDIANAPOLIS
H. B. WELLS, Chairman; F. S. CANNON, Vice Chairman-Vice President;
FRED T. GREENE, President; G. E. OHMART, 2nd Vice President; C.
RUSSELL PARKER, Secretary-Treasurer; HAMMOND, BUSCHMANN, KRIEG
& DEVAULT, Counsel.
DES
MOINES
C. B. BOBBINS, Chairman; E. J. RUSSELL, Vjce Chairman; R. J. RICHARDSON, President-Secretary; W. H. LOHMAN, Vice President-Treasurer;
J. M. MARTIN, Assistant Secretary; A. E. MUELLER, Assistant Treasurer;
EMMERT, JAMES, NEEDHAM & LINDGREN, Counsel.
LITTLE ROCK
W. C. JONES, J R . , Chairman; W. P. GULLEY, Vice Chairman; B. H.
WOOTEN, President; H. D. WALLACE, Vice President-Secretary; J. C
CONWAY, Vice President; W. F . TARVIN, Treasurer; W. H. CLARK, JR.,
Counsel.
TOPEKA
P. F. GOOD, Chairman; Ross THOMPSON, Vice Chairman; C. A. STERLING,
President-Secretary; R. H. BURTON, Vice President-Treasurer; JOHN
S. DEAN, JR., General Counsel.
PORTLAND
BEN A. PERHAM, Chairman; BEN H. HAZEN, Vice Chairman; F . H.
JOHNSON, President-Secretary; IRVING BOGARDUS, Vice PresidentTreasurer; Mrs. E. M. J ENNESS, Assistant Secretary; VERNE DUSENBERY, Counsel.
LAOS ANGELES
D. G. DAVIS, Chairman; A. J. EVERS, Vice Chairman; M. M. H U B FORD, President; C. E. BERRY, Vice President; F. C. NOON, SecretaryTreasurer; VIVIAN SIMPSON, Assistant Secretary.
@FedFRASER