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FEDERAL HOME LOAN BANK Vol. I I , No. 2 N A T I O N A L HOUSING AGENCY John B, Blandford, Jr., Administrator FEDERAL HOME LOAN BANK ADMINISTRATION John H. Fahey, Commissioner FEDERAL HOME LOAN BANK SYSTEM FEDERAL SAVINGS AND LOAN ASSOCIATIONS FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION HOME OWNERS' LOAN CORPORATION UNITED STATES HOUSING CORPORATION NOVEMBER 1944 The " G . I. Bill of Rights": A Summary of Regulations . 35 A Look to Our Future The Road to More and Better Housing A Survey of Post-War Demand For Homes . . . . After the W a r , W h a t Will W e Need In Housing? . 37 39 40 41 Washington, D. C REGULAR FEATURES Worth Repeating 34 Home Front 44 Honor Roll of War Bond Sales 47 Directory Changes of Member, Federal, and Insured Institutions 49 Monthly Survey 51 TABLES New family-dwelling units 56-57 Building costs 57-58 Savings and loan lending 58-59 Mortgage recordings 59-60 Sales of U. S. war savings bonds 60 Federal Home Loan Banks 60 F H A activity 60 Insured savings and loan associations 61 Savings in selected financial institutions 61 Foreclosures 61 * * *> WORTH REPEATING * * * BETTER HOMES—BETTER LIVING: "Building will compete with all other civilian goods, cars, a n d radios, luxuries a n d necessities of every kind a n d description. B u t it will be able to compete-—home building especially. T h e home-of-the-future has been b r o u g h t home to t h e public. Propag a n d a for war bond buying and t h e financial and manufacturers' advertising have stressed t h e home-of-yourown idea. Even t h e exaggerated pictures of the push-button-miraclehome have had one good effect—that of making J o h n Doe t h i n k about, and want, a new home. Popular magazines a n d women's magazines h a v e done a tremendous job of selling 'better homes for b e t t e r living.' W h e t h e r they have raised t h e housewife's hopes too high a n d doomed her to some disillusionment (when she tries to build or b u y within her budget) is beside the point. She is interested, she is sold on t h e idea of a new and b e t t e r house. And she should get i t . " Kenneth K. Stowell, Architectural Record, October 19U- ANALYSIS OF A C C O U N T S : " . . . N o association can keep shareholders waiting very long for their money a n d continue t o do business. Therefore, it seems t o me t h a t in planning for the future, consideration of liquidity is p a r a m o u n t a n d must be a most imp o r t a n t factor when deciding upon an investment portfolio in Government bonds. I t follows t h a t t h e longer t h e m a t u r i t y , t h e greater t h e possibility of m a r k e t fluctuation in t h e event of a changing interest r a t e s t r u c t u r e — t h e nearer t h e m a t u r i t y , t h e less likelihood of m a r k e t fluctuation. " W i t h respect t o shareholder dem a n d , it is advisable t h a t every association m a k e some analysis of t h e t y p e of savings accounts on its books and t r y to ascertain t h e t u r n o v e r of savings money which, incidentally, varies quite widely in different localities . . . In addition t o possible shareholder demands, another prime consideration in planning a bond portfolio is the need for anticipating t h e possible call for home financing funds over the next few years. While I believe t h a t savings a n d loan balance sheets in the future will always carry a substantial 34 a m o u n t of bonds, yet I do not for a m i n u t e think t h a t bond holdings under any circumstances should be considered as p e r m a n e n t investments. There are too m a n y changing factors in t h e situation and, therefore, those m a n agers who proceed t o invest all of their idle funds in long t e r m securities simply for income, are giving little t h o u g h t to these i m p o r t a n t phases of operation." Ralph H. Richards, Third District Quarterly, Third Quarter 1944. IMPORTANT ASSURANCE: "Asound, authoritative appraisal, which gives due weight to current m a r k e t values, appropriateness of t h e improvement to t h e site, and to existing a n d anticip a t e d trends b o t h of value a n d of population, is essential in the making of sound real estate mortgages. However, the percentage of t h e loan to t h e value is only one of t h e i m p o r t a n t elements of a secure mortgage. M a n y loans within sixty percent of t h e accurately determined value of t h e property when m a d e have proved sources of large loss. " I t is safe to assert t h a t the m e t h o d of repayment of any mortgage and its appropriateness to the abilities of t h e first owner, and of any new owner who is likely to succeed him, is more imp o r t a n t assurance against difficulty a n d loss t h a n is a ten or t w e n t y percent greater difference in the percentage of the mortgage as to the value of t h e mortgaged premises." Henry J. Davenport, Savings Bank Journal, October 1944. OUR COUNTRY'S POLICY: " W h e n we start thinking about t h e future of our country, whether we think of t h e immediate future or think in t h e longer range, we begin by speculating a b o u t the kind of a country we w a n t t o live in a n d t h e national policies t h a t are going to be followed. I would like t o emphasize, however, t h a t national policies are certainly not politics and t h e y are infinitely more t h a n mere Government policy. B u t they are t h e concern of all of us. Government does not create them. They are t h e sum of all of the private a n d public policies which we as individuals and as groups choose to follow—the sum of all of those private and public policies which support and sustain each other in t h e national interest. " T h e national policies, therefore, t h a t are going t o t a k e us t h r o u g h t h e critical years ahead are not alone going to be t h e result of things t h a t will be thought out down in Washington. All of us, in a n d out of Government, will be contributing t o t h e m . We could n o t escape it if we t r i e d . " William L. Batt, Dun's Review September 1944. TESTS FOR PURCHASERS: " T h e r e are several basic tests wiiich should be applied when considering t h e purchase of an existing house. T h e first consideration for t h e prospective home buyer should be whether the house is soundly constructed; second, will t h e neighborhood remain 'good' over a long period of t i m e ; third, does t h e purchase price represent a fair value over such a period, and fourth, are the financing terms such t h a t he will be able to meet t h e m , not only out of w h a t he is earning a t t h e time b u t also from his expected future income." Abner H. Ferguson, October 1944. N A T I O N A L OBLIGATION: "The m e n a n d women who will r e t u r n from our world-wide battle fronts h a v e a right to good homes. T h a t m e a n s homes t h a t are structurally sound; t h a t have a d e q u a t e light, air, a n d space, t h a t are fit places to rear families in privacy a n d in health; homes designed for h u m a n enjoyment, t h a t allow for pride and pleasure a n d creative living; homes in reasonable relation to all t h e essentials of a fully rounded family life—employment, health, recreation, education, a n d worship. " T h e nation has an obligation to offer t h e m t h e hope of somethingbetter t h a n a r e t u r n to t h e shacks and t e n e m e n t s a n d blighted neighborhoods from which m a n y of t h e m have come. We have an obligation to m a k e available to t h e m the living conditions t h a t our initiative a n d our capacity to produce can provide for all our people." Housing for the United States after the War, National Association of Housing Officials. Federal Home Loan Bank Review THE "G. I. BILL OF RIGHTS": A SUMMARY OF REGULATIONS This digest of the regulations covering loans to veterans under Title III of the Servicemen's Readjustment Act of 1944 has been prepared by the General Counsel of the Federal Home Loan Bank Administration to provide a brief, readable synopsis for member institutions. Attention is called to the fact that this is to be considered as a summary of the issuance of the Veterans' Administration of October 20, 1944, and does not constitute an interpretation thereof. • T H E regulations of the Veterans' Administration governing the guaranty of home loans under Title I I I of the Servicemen's ^Readjustment Act of 1944 were published in the Federal Register for Friday, October 20, 1944. The purpose of Title I I I of the " G . I. Bill" is to assist veterans of this war in the purchase or construction of homes, the purchase of farms, farm equipment, or business property by providing a means whereby they may obtain loans up to 100 percent. Also, to provide for loans to veterans for the purpose of making repairs, alterations, or improvements in, or paying delinquent indebtedness, taxes, or special assessments on, residential property owned by the veteran and used by him as his home. To assure that funds may be available the Congress has authorized the Administrator of Veterans' Affairs to make guaranties of such loans. Title I I I of the Servicemen's Readjustment Act of 1944 contains sections 500 through 505. Section 500 provides for the guaranty by the Government of not to exceed 50 percent of a loan with a total overall limitation on the amount guaranteed of $2,000. Section 505 provides that in any case where the first loan is approved by a Federal agency to be made, guaranteed, or insured by it, there may be a second loan which may be guaranteed in full provided it does not exceed 20 percent of the cost or purchase price of the property and does not exceed the over-all limitation of $2,000. Definition of Terms The term "'home" is defined as meaning any dwelling of not more than four family units or any combination dwelling and business property, the primary use of which is occupation by the veteran as his home. Interests in realty which may be used as security include long-term leases. The security instrument taken by a lender may be a mortgage, deed of trust, security deed, conditional sales agreeNovzmbzr 1944 ment, or other type of security instrument commonly used. All loans to be eligible for guaranty must be secured except where the amount of the loan does not exceed $500, in which case the loan may be guaranteed even though security is not taken. Guaranties 4 Guaranteed loans under these regulations may be made for the purchase of residential property or construction of a dwelling on unimproved property owned by the veteran to be occupied by him as his home. In these cases the purchase price or the construction cost, plus the value of the lot, must not exceed the reasonable normal value of the entire property as determined by proper appraisal. In addition, loans may be guaranteed which are for the purpose of making repairs, alterations, or improvements in, or paying delinquent indebtedness, taxes, or special assessments on, residential property owned by the veteran and used by him as his home. These loans may be guaranteed even though there are in existence prior liens on the security property. In all other cases where security is taken, a guaranteed loan must be a first lien except that where a Federal agency has made, guaranteed, or insured the primary loan, a secondary loan on the same property may be guaranteed by the Administrator of Veterans' Affairs. The loan may be a term loan if the amount thereof, plus all prior liens, does not exceed two-thirds of the value of the security property and the maturity is not greater than five years. Other loans are to be amortized within a period of twenty years with periodical payments at monthly or other intervals, but not less frequently than annually. Under the Act, the Administrator of Veterans' Affairs is to pay the interest for the first year and the veteran may have his payments reduced during the first year by this amount. All amortized loans are to contain appropriate provision for prepayment at any time of 35 the entire unpaid balance or any part thereof. A term payment at any time of the entire unpaid balance or any part thereof may be prepaid upon not less thau one month's notice. Loan charges in accordance with local custom may be included in the loan, such as fees for appraisal, credit reports, abstract or title searches, attorneys' and recording fees, premiums on fire insurance and other hazard insurance, etc. But such charges must be limited to the amount actually paid or incurred by the lender and may be charged to the borrower and withheld from the amount of the loan. No brokerage charge may be collected from the veteran for obtaining the guaranty. If the application for guaranty is denied, any expenses incurred by the lender or the borrower would be borne by them or either of them as they shall have agreed. The rate of interest on the guaranteed loan may not exceed four percent per annum on the unpaid principal balance. Secondary loans are further limited to not more than one percent per annum in excess of the principal loan. Methods (or Application Under the regulations, the veteran may make an application for a loan to his local savings and loan association or to any individual or lending agency he may prefer. The lender is to ascertain from the nearest office of the Veterans' Administration whether the proposed borrower is eligible, and if eligible, the Administrator will supply the name and address of an approved appraiser to be used in the course of processing the application. If the lender is willing to make the loan, it will submit the application together with the credit and appraisal reports, the proposed loan closing statement, and information as to insurance, to an office of the Veterans' Administration, or to the office of a Federal instrumentality designated by the Administrator. The designated agency (including Veterans' Administration, if so designated) will review the papers and forward them to the appropriate office of the Administrator of Veterans' Affairs with recommendation that the application be approved or disapproved. The actual approval of the guaranty must in all cases be by the Administrator of Veterans' Affairs, or his employee. Upon approval the guaranty certificate will be executed and forwarded to the lender with the other loan papers and with instructions as to closing the loan in a manner to make the guaranty effective. If the application is dis36 approved, the papers other than the application will be returned to the lender with a statement of the reasons for disapproval. Upon receipt of the loan papers from the Administrator with notice of approval of guaranty, the lender will satisfy himself as to the title to the property to be encumbered, cause all loan instruments to be properly executed and duly witnessed, acknowledged, or proved, disburse all funds in substantial accord with the proposed loan closing statement submitted with the application, and file for recording the mortgage or other security instrument and any other instrument which is entitled to be recorded. Thereafter the lender will prepare and forward to the Administrator (on a prescribed form if available) a report of the loan closing showing the disbursements of the loan upoa closing, and that the note and mortgage have been properly executed and the security instrument filed for recording. The Veterans' Administration will not undertake to examine the title to property offered as security for a loan to be guaranteed, record the security instrument, arrange for insurance protection, or look after the payment of taxes. As the sole responsibility for the proper performance of these functions is to be placed in the lender, the guaranty will not cover any losses sustained by the lender as a result of acceptance of the mortgage on property the title to which is not merchantable according to customary practices in the community; failure of the lender to procure a duly recorded lien as required by the regulations; failure of the lender to provide adequate insurance protection in accordance with the regulations; or his failure to prevent loss of property through tax sale resulting from non-payment of taxes accruing against the property after the date of the mortgage, if the mortgagee does not give at least one month's prior notice to the Administrator of such sale. Penalty Provisions If the veteran fails to make any payment or perform any covenant or obligation under the note and mortgage, and the default on an amortized loan continues for three months (one month on a term loan), the lender may elect to file its claim under the guaranty and give notice thereof to the Administrator. If default arising through non-payment of principal or interest should continue for six months, the leader is required to give notice of such default. (Continued on p. 1+3) Federal Home Loan Bank Review A LOOK TO OUR FUTURE The following is an excerpt from a speech made by James Twohy, Governor of the Federal Home Loan Bank System, before the Metropolitan League of Savings and Loan Associations, in New York City, October 79, 7944. • W E are living through one of the great epochs of human history. As we all know, the war itself is but the cutting edge of a world-wide revolution, and for all of its unimaginable miseries, it certainly will not end the social, economic and spiritual upheavals which have overwhelmed the human family. Victory will not bring peace, for peace is the tranquility of order. Instead, half the human race will sit shivering and starving in the ruins of a windowless world, and on us and our associates in victory will fall the terrible burden of responsibility which goes with success and greatness. After victory is won, we are not going to find ourselves in a paradise of happy gadgets. While it is true . . . that we will have the opportunity of creating for the first time out of our vast resources an economy of true abundance, the acid test, of course, and the real payoff, will be the quality of understanding, of leadership and of team work which, as a free people, we are able to summon to the task. You cannot separate a projection of your own business future from the great national problems of which it is an integral part. Post-War Business To begin with, your business after the war . . . can grow so fast, and can become such a key factor in the major business of the Nation, that the change in your operations can well be one of kind and character as well as of degree. At present the savings and loan associations in the Bank System hold assets approximating six billion dollars. Their aggregate home mortgages exceed four billion. If they do not at least treble these two accounts within the decade following the war (assuming always that the American economy is made to work to its reasonable capacity) it will be because they have lost their place in the main stream of progress, and are withering away and dying on the river bank. Experts agree that the health, if not the preservation of, our capitalistic system will depend upon practically full employment. Anything like full employment—which of course we have never yet enjoyed in peace time—will mean a November 1944 national income, at the 1941 level of wages and prices, of 125 billion dollars as a minimum. Out of a national income of such size, we are bound to see annual savings rise to an unprecedented level. Your institutions, traditionally organized for thrift, can get your full share of these huge savings; all you will have to do is to deserve them. And you will have an abundant home mortgage outlet for these invested savings provided always that you earn it. Importance of Home Construction After the war the Nation's program of home construction will be among the first six of our major economic activities, if indeed not the first. The essential elements for such a major movement will certainly be upon us. The market will be the pent-up American urge for a home of one's own which animates millions of our citizens who have doubled up or lived in improvised housing during the war stoppage of all normal building, plus the twelve million of our returning servicemen who will bring back this same hunger for a home of their own. Besides this urge and all the driving enterprise of a released economy, the incentive will be the immense importance of home building as a measure of employment, spreading both on-site and off-site through so many vital segments of our industry, commerce and finance. This, I hope, will not be one of those real estate and building booms, on the familiar vertical lines of rising prices, inflated values and jerry-built overselling, which has brought us so often in the past to that dark-morning-after. Rather, I believe it will far surpass anything in our experience in quality and genuine cost-cutting, under fiercely competitive merchandising, which is always the buyer's best guarantee. Numerous projections of the housing need, as you know, have been made by many experts, all exceeding one million dwelling units annually over the next ten years. Under the " G . I. Bill," whereby the veteran can receive 100 percent financing at 4 percent, with payments spread over 20 years, it is estimated that over ten billions of dollars in home mortgages will be 37 used. Indeed, competent estimators have actually doubled this figure. If these projections are fairly accurate, the member savings and loan associations of the Bank System all over the United States are going to find themselves in big business over night, when the war ends and the material controls are lifted. Just where do your institutions stand today? Here are the figures for member institutions of the Federal Home Loan Bank System for the war years 1941, 1942 and 1943. Combined total assets increased some 26 percent, total savings in your custody—39 percent, the total mortgage portfolio— about 16 percent. At the beginning of 1941 member associations had on hand cash of $242,000,000 and bonds of $112,000,000, both representing about 10.5 percent of total capital. At the end of 1943, the cash balances of $387,000,000 and bonds of $820,000,000 together amounted to more than 25 percent of total capital. These trends, together with an increase of reserves and undivided profits from $304,000,000 to $411,000,000, indicate the large gains made in your ability to meet the post-war challenge. In real estate owned the picture is even better. Associations in the System held real estate at the beginning of 1941 amounting to $300,000,000. At the end of 1943, the real estate account was reduced to less than $70,000,000, below 1.5 percent of toiai assets. No other financial institutions of record have made such progress in clearing their real estate left over from the depression. Suggestions for Action Member savings and loan associations of the Bank System have the tradition, the resources and the facilities to take the financial lead in the national program of home building which is corning, but you will have to use them to their top effectiveness to maintain that lead. M a y I offer a few suggestions for holding that leadership? Until the war is ended, continue and step up your war program: buy Government bonds and use all your resourcefulness to sell more and more E bonds to individual savers. Build up your reserves. They will be worth more to you than a five-foot shelf of post-war blueprints. Fight inflation. I t is your mortal enemy. Hedge against it in your present lending by one or another or all of the practical formulas which have been worked out for that purpose. Let me urge upon you too the full use and vigorous support of your own Federal Home Loan Bank 38 System. Back of your own liquid resources for the challenging work ahead of you lies the pooled power of this system of reserve credit, which, to my mind, is the best working model so far developed in our country of the proper relationship of Government with a free and dynamic economy of private enterprise. None of them [the district Federal Home Loan Banks] can offer you the services designed by the Congress without your active support. You needn't go to Washington to help make this System stronger. Concentrate on your own Bank. Elect directors of vision and ability. Back up the officers whom they elect and support their programs strengthening their service. So, too, with insurance of your investors 7 accounts through the Federal Savings and Loan Insurance Corporation. Insurance is a modern facility that every institution of your type will need if it wishes a long life and a useful one. A great bulk of your future customers will be young veterans. With the collaboration of the Government under the magnificent ' "G. I. Bill" you can finance for the veteran a home of his own on terms and conditions which are not only his just right, but which will have an enormous effect on the future life and stability of this republic. Competition for his business on any basis other than his own best interest and the soundest of lending practices, whether in appraisals, in credit reports, in a careful and helpful analysis of his needs and his ability to pay, will help by just that much to sap the economic strength of our country. In mapping your programs of service remember this: what is bad for the borrower, is bad for your institution and bad for the country. W P B Conservation Division Discontinued H SINCE at this stage of the war effort only a lessening amount of work remains to be done in conservation, the Conservation Division of the War Production Board has been discontinued at the recommendation of its director. The Division's function had been that of saving critical materials through techniques including the development of design guides and directives to control the use of strategic construction materials. Other divisions of W P B can handle the remaining matters in the field. This decision conforms with the over-all policy to terminate any operations as soon as they become unnecessary. Federal Home Loan Bank Review THE ROAD TO MORE AND BETTER HOUSING The progress that has been made in meeting the Nation's war-housing needs, as well as in amassing a more nearly adequate supply of materials, is reflected in the changes that are being made in the housing program. This article presents a summary of the latest NHA andWPB actions taken to keep abreast of these developments. • NOW that the most critical stage of war housing has been passed, attention is being directed to problems of number-two priority in this field. From now on it should be possible to relax certain hitherto vital restrictions, to release an increasing volume of supplies for necessary home-front construction, and to take care of the housing needs of others than the essential, in-migrant war workers on whom the past program has necessarily been concentrated. Recent announcements by the National Housing Agency and the War Production Board constitute important steps in the direction of more and better housing. So far this action is authorized only in areas where relief of congested conditions is most necessary. I t cannot at this time mean that the "green light 7 ' is being given on a nationwide scale to the housing industry. However, in those areas designated by the NHA as being in a critical condition, it will now be possible to provide houses that meet standards beginning to approximate an ordinary peacetime level in both size and quality, to remove previous occupancy restrictions on such properties, and to increase further the supply of dwelling units by additional remodeling and conversions. Construction of larger and better houses will be made possible in specifically designated high-cost areas by establishing higher sales prices and rental ceilings. In these locations, top sales prices of $8,000 and shelter rent ceilings of $65 will replace the former general maximums of $6,000 and $50. This new program, which is but an extension of the original H - 2 program, carries the same provision for scaling down ceilings to conform with local cost conditions. In areas where lower price levels will permit construction of the quality and size necessary to obtain the desired objectives, appropriate sales and rental prices will be established. Under the new maximums, it will now be possible to erect 3-bedroom houses which could not be built under previous ceilings in most areas. I t is also anticipated that such housing will meet the minimum construction standards under Title I I of the Federal Housing Administration. November 1944 Construction authorizations will be subject to local quotas to be determined by the NHA. These local quotas will set maximum sales and rental prices which must, for each project, have NHA approval as a prerequisite to the extension of priorities for materials. In authorizing this H-2 housing, efforts will be made to secure the maximum number of rental units. All occupancy restrictions will be removed on this type of construction so that the program, in addition to relieving general congestion, should provide special help to long-time residents in contrast to in-migrant war workers. Military personnel and their families as well as returning veterans also stand to benefit by the present regulations. This new program will in no way interfere with nor affect the other phases of the current program. H - l housing, which is designed for essential inmigrant war workers, is reserved for their occupancy so long as war conditions require. I t ma3r not be sold for more than $6,000 nor rented for over $50 a month. The third facet of this over-all program— H-3—was originally intended to relieve personal hardship of a specific individual or his family as well as to provide for reconstruction or replacement of dwellings damaged or destroyed, and to cover remodeling or subdivision of existing dwellings in areas of extreme housing shortage to provide additional units. Recently, priority assistance has been extended under this program to facilitate construction for returning veterans who are unable to find other suitable living quarters. FHA Insurance This latest approach to the housing problem includes some revision of existing regulations with respect to FHA mortgage insurance. Since the summer of 1942 Title I I insurance has been limited to existing dwellings with privately financed warhousing projects being provided for under Title VI. FHA State and District Directors have now been notified to resume processing applications for Title (Continued on p. 1$) 39 SURVEY OF POST-WAR DEMAND FOR HOMES Recently, the Office of Civilian Requirements of the War Production Board made public the results of a sample survey of the probable market for new owner-occupied homes if there were plenty of manpower and materials available. Judging by the findings, it would seem that a substantial demand may be bidding for residential construction when volume building starts again, • SINCE April of 1942, when Limitation Order L-41 shut down the tap on building, the home construction industry and mortgage lending business have anxiously looked to the day when these restrictions could be relaxed. Over the 31 months in which the order has been in force, estimates of future demand have come from all corners as business planned for a reconversion to full civilian production. Recently, the Office of Civilian Requirements of the War Production Board made public its estimates on the basis of a sample survey conducted last spring. To obtain its answer, the OCR put to 4,488 households the question: "Would you buy or build a new house right away if there were plenty of material and labor available?" Applying the answers to this question to the country as a whole, it is estimated that there is a potential demand from would-be owner-occupants for the construction of 3,700,000 homes. Although this survey was conducted for the purpose of determining a rather immediate demand, there are still uncertainties as to timing, but even if spread over three years there would be a record annual average of better than 1,000,000 units. "Does this mean that an unprecedented building boom is to be anticipated? The answer is that no single figure can take into account all of the factors which may increase or decrease the amount of future construction/' While most of the 10 percent indicating intentions of buying or building thought in terms of "brand new" homes, some undoubtedly answered in terms of properties new to them and all are potential customers for existing dwellings. The proportion of new construction, it was pointed out, "will depend upon many circumstances, both national and local." The inference may be made, OCR states, that the demand for new homes will be about one-half of the total demand for dwellings. In attempting to evaluate future demand, allowance must also be made for military personnel who were not included in the OCR survey. The im40 portance of this single factor can scarcely be overlooked, particularly in view of the loan guaranty provisions of the Servicemen's Readjustment Act of 1944, which will heavily augment buying power— some estimates of the extent of credit it will facilitate running as high as $15,000,000,000 in the homemortgage field alone. Reservations to Buying Naturally, a large number of the replies were qualified. However, 7 percent gave an indication of steps already taken. Applying this to all households, some concrete form of planning is estimated to have been put in motion for the construction of 2,600,000 homes for owner occupancy. About 2,300,000 homes would not be delayed in starting because of money or building cost considerations, while 800,000 purchasers and builders would close in on the market without delay, indicating no reservations as to their planned course of action. How do such figures as these compare with recent trends in the purchase of homes for owner occupancy? Unfortunately, precise information on owner-occupant purchases is not available. However, OCR estimates, based upon census data and the Third Survey of Consumer Requirements, place the annual average between 1940 and 1944 at from 850,000 to 1,360,000 dwellings. By these criteria, the minimum demand of 800,000, as represented by those households indicating unqualified intentions to buy or build as soon as unrestricted construction starts, might seem somewhat low. On the other hand, 3,700,000 in one year would be considerably above the rate at which homes have been acquired during the war. Who are most likely to buy or build? Speaking in very general terms, certain trends are descernible in home ownership in the past which corroborate statistics iccumulated in the OCR survey. Specifically, reference is made to the stronger inclination (Continued on p. 62) Federal Home Loan Bank Review AFTER THE WAR, WHAT WILL WE NEED IN HOUSING? A study recently released by the National Housing Agency points toward a vast potential market for new construction. Neither a program nor a schedule, the data published below concern estimates of need only as a factor affecting demand and not demand itself. • " H O W much additional nonfarm housing will we need in this country in the immediate postwar years to provide for population and family increases, and to start making up past deficiencies?" In an attempt to answer this question, the National Housing Agency has presented a study, which is primarily an estimate of the housing the country will require after the war, and that the industry might be able to produce. I t is not a rigid schedule, nor is it a prediction of what will be done. None of the results of the estimates, including the breakdown of needs by origin and by rental value classes, can be applied specifically to any particular region of the country, or any housing market area. Guided by these qualifications, the need for housing to be provided within the first ten years after the war is placed at 12,600,000 nonfarm dwelling units. The majority of the units should be new construction, and the remainder conversions. Half of this new building will be to accommodate an increase in the number of households, and half will be part of a longer range program for the replacement of substandard units. The study has arbitrarily assumed the period from January 1, 1946 to December 31, 1955 as the first post-war decade. Although it is within this period that the estimate is planned, it is assumed that the replacement job will have to be spread over a 20-year period. Derivation of Estimate Any estimate of housing requirements is assimilated from a number of component elements, each of which may be subject to the influence of widely differing opinions. Included among these factors are assumptions as to the proportion of income devoted co housing, indexes of substandard dwellings, rates at which the existing supply will decline, and the amount of undoubling which may be expected. Slight differences in any of these, or in the broader estimates of the increase or distribution of nation al income or population, would result in a very considerable variation in the final figure. November 1944 615 0 25—44 2 In deriving these estimates, housing need has been calculated in terms of obtaining for each family a separate dwelling unit which conforms, at least, to minimum standards of health and decency. In addition to this dwelling space, a vacancy allowance must be considered which would permit enough choice to suit family requirements and mobility and would be consistent with the rate of completion of new units. This vacancy ratio will be sufficient to provide suitable units for the displaced while substandard dwellings are being demolished. Number of Families The total estimated number of dwelling units required to house all nonfarm families in the Nation equals the number of families plus the allowance for vacancies. Census data, modified by exclusion of farm families, by a different assumption as to the end of the war, and by provision for the undoubling of those families now living with other households, were used in the calculations. Since the Census estimated 1945 as the first year of demobilization, a large increase in the number of families established in that year was included. However, the NHA study takes 1946 as the first post-war year, necessitating an adjustment in the Census data. I t was estimated that by January 1946 there will be 30,618,000 nonfarm families; and that by December of 1955 they may total 36,795,000. It must be pointed out that no allowance has been made for war losses. Because the casualties of war (those who may be killed or permanantly institutionalized) are largely in the age-distribution important in the formation of families, this factor will influence the total. I t seems that, for every 100,000 casualties, the estimated number of families will be reduced by 60,000 during the first five years, and by 11,000 more during the second five years following the cessation of hosilities. Further effects will be apparent after the first post-war decade, but at a lower rate. 41 Definition of "Substandard1' The discussion of substandard dwellings assumes that, in metropolitan areas, the absence of a private bath and toilet or the need for major repairs places a unit in the "substandard" classification. In nonfarm areas outside the metropolitan districts, only the need for major repairs was used as an indicator. Of course, merely because a unit lacks a private bath and toilet or needs major repairs, it does not necessarily require demolition. Some may be renovated; and some, though having a private bath and toilet and being in repair, may be substandard for other reasons. Still others, though physically standard, may have to be demolished because they are situated in a slum area requiring clearing. Therefore, the number of units classified as "substandard" provides only for a general category, and does not refer to any in specific groups. "Demolition" has been used as a term denoting the removing of the unit from the housing supply. However, it may merely cease to be used, or it may be boarded up. In any case, in order to clear the slum areas within the indicated time, a rate of demolition above any in the past would be necessary. Since the objective of the replacement program is to dispense with accommodations which do not meet welfare standards, it is necessary to consider not only living quarters which have fallen below standard in the past, but also housing which will become substandard in the future. Rate of Production In order to fill the total need in ten years, including the replacement of all substandard dwellings, it is judged that 16,100,000 units would have to be built. However, it is assumed that the replacement job would probably need to be spread over a longer period of 20 years. The average annual production of 1,260,000 was set as a goal. This would include the provision for newly formed families, as well as for others requiring new housing during the decade. I t was estimated that this annual production (approximately 300,000 above any former year) would replace losses by fire, flood and other hazards, and wipe out half of the existing substandard dwellings. In addition, this rate of construction would eliminate a number of units equal to those becoming substandard by the end of 1955, and would allow for a 5-percent margin of vacancies in the total supply by the end of the period. Four general categories were established to classify the need for housing: (1) normal increase in families, 42 and migration from farms—4,100,000; (2) establishment or re-establishment of married servicemen's homes—1,400,000; (3) undoubling of households — 700,000; and (4) 100,000 units to bring the vacancy rate to 5 percent. Replacement of Dwellings In order to replace substandard structures, 6,100,000 units would be required; an additional 200,000 to take the place of those destroyed during the decade would bring the replacement total to 6,300,000. In 1940 there were about 7,000,000 substandard dwellings, and it is believed that about 2,600,000 additional units would become substandard between 1940 and 1955. Replacement of half the 1940 units (3,500,000) and of the 2,600,000 units indicates a construction program of 6,100,000, leaving 3,500,000 to be replaced in the 10 years after 1955. I t can be seen that the length of time required for replacement might be assumed as being shorter or longer depending upon national policy and the capacity of the residential construction industry. Rental Breakdown I t may be possible, by examining the forces in operation in the housing market, to clarify the problem of the price range which would be most desirable for the dwellings to be constructed. However, the NHA report emphasizes cha; estimates in the field of rental and sales-price classes are tentative. The estimated income distribution of families in 1955, on which the detailed rental figures are based, is uncertain, and only inadequate information concerning the race of decline in value of residential properties with age, and the relationship of the decline to the current volume of new construction is available. " F o r example, one of the conclusions to which this study points is that, because of changes in income levels from time to time, and because of the relative decline in prices and rents of units as they grow older, the replacement of substandard units may be accomplished by new construction at price or rent levels above the price and rent levels of the substandard units which are replaced," Still, even based on a projection of income levels substantially higher after the war then before, it will be necessary to provide large volumes of lowrent or low-cost housing. I t must be noted that in the last several decades, most of the construction which has taken place at the lowest levels has failed to meet the minimum health and safety standards; it is emphasized again, that this new construction should meet at least these specifications. Federal Home Loan Bank Review In terms of 1944 prices, and assuming an average post-war annual income of approximately $125,000,000,000, the estimate finds that one-third of the units should rent for less than $30 a month in order to meet the requirements of families of low income. Since few standard dwellings can be built at this price level, no estimate is given for sales price. Another third should be constructed to rent from $30 to $50, or to sell from $3,000 to $5,000; and the remaining third may rent for $50 and up, or sell at $5,000 or more. Conclusions Thus, a survey of the estimated need for dwellings in the post-war period has been presented. In offering these data the National Housing Agency pointed out that they are not a forecast of how much or what kinds of housing actually will be built in the decade after the war. Neither are they an inflexible schedule that must be met for the decade or any part of it, nor do they deal with methods of financing, producing, or owning the housing units that will be needed. " Predictions, schedules, housing machinery and methods all have their important places but they are properly separated from the preparation of as objective and dispassionate estimates of over-all need as can possibly be made." oummary of " G . I. Bill of Rights" (Continued from p. 86) The amount payable under the guaranty, is fixed and established as of the date of the claim and is to be the percentage of the indebtedness originally guaranteed applied to the indebtedness and reduced by any payments theretofore made by the United States pursuant to the guaranty. The total amount payable under the guaranty, however, cannot exceed the original amount guaranteed. Upon payment of the loss, the Administrator of Veterans' Affairs would become subrogated to a junior interest in the rights of the lender to the extent of such payments. The Government would, therefore, not be entitled to recover by reason of its junior participating interest in the mortgage until the lender has received the full amount payable under the loan contract. Upon receipt of a claim under the guaranty, the Administrator has the following options: First, he may pay the lender the amount in default as a partial payment of any liability under the guaranty; second, November 1944 the claim may be paid in full without requiring foreclosure; or third, the lender may be paid any amount agreed upon, not exceeding the amount due under the guaranty and notice given to proceed with the foreclosure of the security property. Allotment Regulations Amended • ON October 20, the Adjutant General filed with the Federal Register an amendment of the War Department regulations affecting the allotment of pay and allowances of active and retired military personnel as well as civilian employees of the Department. According to the regulations, Class E allotments, those made to individuals, a fiduciary, a banking institution, or a commercial life insurer, may be designated for investment in Federal and statechartered member savings and loan associations of the Federal Home Loan Bank System. As a result of these changes, savings and loan management will find it important to be thoroughly conversant with the various technicalities that will affect this business. Particularly important are those sections concerning the allotments of missing persons, status of discharge, and death of allotter. According to the regulations (Section 308.10) " T h e pay and allowance accounts of persons absent in a missing status are set up and maintained in the Office of Special Settlement Accounts, 27 Pine Street, New York 5, N. Y. During the period of absence there are credited the pay and allowances due, and for the same period there are charged against such pay and allowances all allotments paid on account of the absent person and all prescribed deductions from pay for family allowances paid on his account. Allotment payments so charged will be recredited in any case in which it is determined by the Secretary of War, or by such subordinate as he may designate, that such payments were induced by fraud or misrepresentation to which the absent person was not a party. "When the absence of any person in a missingstatus is terminated by death or finding of death, all allotment and allowance payments will be discontinued and the account closed for settlement. When any such status is terminated by a return to the controllable jurisdiction of the War Department, the person will be advised of the allotments and family allowances in effect which constitute a charge to his account and will be afforded an opportunity to execute such changes therein as he desires- . . -." 43 American architecture goes abroad During wartime, t h e export of construction materials a n d plans m u s t cease. However, t h e exchange of ideas is not limited, as proved by the wide d e m a n d for international exhibits arranged b y t h e M u s e u m of Modern Art in New York. F o r example, " T h e Lesson of W a r H o u s i n g / ' an architectural display which was originally assembled for t h e London and Sydney Offices of W a r Information, surveys t h e progress we h a v e m a d e in planning wartime housing developm e n t s . Panels, equipped with running text and illustrations a n d diagrams, were shown abroad a n d served to interest British audiences in American home building. Another interesting display arranged for foreign use is "America B u i l d s / ' which has been sent to Sweden, to be shown t h r o u g h o u t t h e country. This was prepared a t t h e request of t h e N a t i o n a l Association of Swedish Architects, in celebration of t h e twenty-fifth anniversary of the foundation of the Swedish American Society in Stockholm, a n d t h e American Scandinavian F o u n d a t i o n in New York. I t covers recent American architecture; a display of housing, for peace and for war, especially wartime housing developm e n t s ; points up prefabrication a n d the use of new building methods a n d materials; and presents a study of town and rural planning. Housing priorities for veterans I m m e d i a t e priority assistance t o World War I I veterans, honorably discharged since December 31, 1940, for construction, alteration or improvem e n t of their homes has recently been authorized by joint action of t h e War Production Board a n d t h e National Housing Agency. Applications should be filed with t h e nearest office of t h e Federal Housing Administration on Form W P B 2896. Approval of t h e application will provide t h e veteran with a priority rating a n d allotment symbol for t h e purchase of material and equipment in accordance with t h e Wrar Housing Critical List a n d with t h e War Housing Standards. This action constitutes a broadening of t h e scope of N H A ' s H - 3 housing program which was previously limited to t h e relief of specific cases of individual hardship, replacement of d a m aged housing, or property conversions to provide smaller dwelling units in designated areas of extreme housing shortage. (See " T h e R o a d to More a n d Better H o u s i n g / ' page 39 of this issue.) Warning against instalment land buying T h e widespread purchase of buildinglots on t h e instalment plan by people in t h e moderate income group brought a warning from t h e Federal Housing Administration which pointed out t h a t , judging from past experience, financing for a large p a r t of t h e smallhome building after t h e war will be sought by means of t h e FHA-insured mortgage system. I n order to obtain this insurance, projects must meet F H A requirements for design, layout, 44 materials, a n d other essentials for sound values. Some of the l a n d now being bought is in u n i m p r o v e d areas, out of reach of utilities services, or in neighborhoods unsuited t o residential development. Financing of homes on this t y p e of land will be almost impossible, rendering t h e land a b u r d e n on t h e purchaser. T h e increased earnings of war workers have brought a b o u t a large m a r k e t for lots; and, in some p a r t s of t h e country, large t r a c t s of land are being cut into smaller sections a n d peddled to t h e public on small down p a y m e n t s . If these lots are b o u g h t indiscriminately, without a t t e n t i o n t o t h e planning which forms t h e main protection for most investment in land, t h e y m a y not be capable of development in t h e near future, if ever. H o w ever, some lots in suitable locations, properly sub-divided a n d within reach of utilities, m a y still be purchased, despite t h e inflated m a r k e t . V a l u e of annuity contracts rises T h e I n s t i t u t e of Life Insurance reported t h a t , in 1943, t h e n u m b e r of a n n u i t y contracts reached 2,246,000. Their current value was over $4,500,000,000, and t h e a n n u a l income represented to the a n n u i t a n t s totaled $756,000,000. During t h e last five years, the n u m b e r of annuities has risen 40 percent, with an 8-percent increase in 1943 over 1942. Group annuities, which have nearly doubled in t h e past five years, now represent over half of t h e total annuities, compared with less t h a n t w o fifths in 1938. At the end of 1943, 1,177,000 of t h e aggregate contracts in force were group annuities, providing an annual income of $217,000,000. Individual annuities, with an a n n u a l income of $479,000,000 n u m b e r e d 960,000,000, a n d 190,000 contracts, providing income of $50,000,000 represented t h e use of benefits of regular life iusurance policies as a n n u i t y income. Over 75 percent of the contracts are to provide income beginning in Fee/era/ Home Loon Bank Review the future. Paying out income now are 478,000 policies (mostly individual contracts). An additional annual income of $29,000,000 now payable is provided by contracts for the payment of regular policy benefits in instalments. Contractors do non-construction jobs A survey, taken by the Associated General Contractors of America, shows that general contractors are doing war jobs in fields other than construction, the Constructor for September reports. In order to aid in the war effort and to keep their organizations ready for future construction programs, these firms are doing such jobs as shipbuilding, airport grading, dredging, logging, strip mining, packing of munitions and other varied projects. These new enterprises amount to from 50 to 100 percent of the work now being handled by many general building firms. Supplemental steel for plumbing and heating supplies A supplemental allotment of 58,428 tons of steel for certain specified types of plumbing and heating equipment has been made available by the War Production Board for the fourth quarter of 1944. Among the items included in this list of civilian supplies are domestic stoves; warm air and oil and gas floor and wall furnaces; hot water heaters and storage tanks; warm air distribution equipment and combustion, heat generation and distribution controls. To obtain materials under this allotment, manufacturers must file supplemental Controlled Materials Plan 4B applications with the Plumbing and Heating Division. However, it is urged by the WPB that requests be made for only those amounts of material that can be used without interfering with manpower facilities for war production. Moving of temporary war housing As the result of tests, the Federal Public Housing Authority has announced that the shifting of temporary war housing will be undertaken whenever possible, and new units will be constructed only where the re-use of existing structures is not feasible. In these experiments it was found that temporary housing which had not been previously classified as demountable November 1944 could be dismantled and moved as effectively as the units built with demountability as a feature. With this announcement, a national pool of vacant housing has been created to meet the needs of the future. This will not only lessen costs, but will keep the amount of temporary housing which will have to be disposed of after the war to a minimum, and will insure maximum conservation of building materials. This pooling of temporary housing is one of the three major policies now in effect which will enable the FPHA to adjust its housing to future conversion from war needs. The second covers the moving of tenants into consolidated units in areas where the need for housing still exists, but has lessened. By such action some units may be vacated for use elsewhere. The third involves further experiments, developing cost and technical data to aid in the disposition of materials in order to offset demolition costs and make orderly disposal possible without disturbance to normal supply markets. There are approximately 400,000 units of temporary war housing, more than 50 percent of all the war units financed by the Government. As of the beginning of September, 6,000 temporary and demountable dwellings were available in types suitable for re-use in other assignments. New rental rulings issued by O P A Changes in rent regulations affecting security deposits were recently announced by the Office of Price Administration. One amendment stated that landlords who collected such deposits on units where maximum amounts were set by first renting on or after the institution of control in the area may keep the deposits until the current lease expires if the deposits were collected before September 1, 1944. However, this does not apply to newly constructed priority housing where no such security may be required. Refunds of security deposits totaling more than $130,000 were made over a 20-day period in October, in conformity with the new amendment to the rent regulations, which prohibits the collection of deposits for new priority housing. Landlords voluntarily returned the money when they were notified of the ruling which clarified the regulation. OPA Rent Adminis- trator Ivan Carson said that widespread collection of security deposits, aside from those authorized by the agency, would threaten rent stabilization. Another change enables a landlord to petition for an order authorizing the demand and receipt of a deposit to secure the return of movable articles. Orders authorizing security deposits will be issued only where special need for it can be shown by the landlord; and the amount may not exceed $10. POST-WAR BOOKSHELF Although inclusion of title does not necessarily mean recommendation by the REVIEW, the following recent publications will be of interest. ECONOMIC PROPOSALS FOR THE WESTERN HEMISPHERE: 1944. 38 pp. Available from United States Committee to the Permanent Council of American Associations of Commerce and Production, 1615 H Street, N. W.; Washington 6, D. C. PRODUCTION, JOBS AND TAXES: 1944. 116 pp. Available at $1.25 from McGraw-Hill Book Company, New York, N. Y. LETS BE SENSIBLE ABOUT POST-WAR BUILDING: Available from United States Gypsum Company, Investment Building, Washington, D. G WAR HOUSING GUIDE—WHAT THE PROBLEMS ARE AND HOW TO SOLVE THEM IN THE INTERESTS OF WAR PRODUCTION: 1944. 16 pp. Available from Office of Labor Production, Plant and Community Facilities Service, War Production Board, Washington 25, D. C. CURBING INF LA TION THRO UGH TAXATION: By Marriner S. Eccles, Alvin H. Hansen, and others. 1944. 270 pp. Available at $2.50 from Tax Institute, Inc., 257 Fourth Avenue, New York 10, N. Y. CITIZEN, PLAN FOR PEACE: Merrill E. Bush and others. 1944. 216 pp. Available at $2.00 from Harper & Bros., 49 East 33d Street, New York 16, N. Y. HOME PLANNERS' INSTITUTE MANUAL: 64 pp. illus. Available from Home Planners' Institute, 364 Stuart Bldg., Seattle 1, Washington. 45 * * * A GALL TO MEMBERS * • * r "£AS(JF)y 0£p, '""'"a ^oaa win* s»PPort o r •Tom. ,\*\£».e ??•**•* k T\0^ 4\^pAr eoe^v ^ietft° . o * * * ^ ** Sublet 1 "***** *v. - c, ^Ss-* To ¥ede Tt S i * * . e& iVf Tecei t0 *^< ^Oy "»"*.•, •«3fa. ^ « ^1***f e *4s ^ j . j*. - **^.«fu 3**s£ >^r<* •***- * 47, ^ f i > ^ t °9 ^o 9o 4 >8 2 t 9c°* t V 2* r r our* PUah°«*Se ^«o^V » ^ C ^ t ? ^ , <fce « & 9 ti3fte. **•*£ tb ~j5ttfS&&* & sr^Mt*- ^t«>i^: •*s?y x ^ HONOR ROLL OF WAR BOND SALES • T H E Sixth War Loan opened on November 20. about 30 days after American forces returned to the Philippines and 167 days after Allied landings in Northern Europe. In France, Germany and Italy fighting is in full stride. In the far reaches of the Pacific we are still making a comeback to points from which a knockout blow can be launched at the Japanese island empire. On the home front, too, pressure is being maintained unremittingly. With our armed forces thrown into battle in two theaters of war so distant from home and from each other, we are called upon to sustain greater effort and expenditure of blood and supplies than ever before. That the quota for the Sixth War Loan is somewhat below that set for the preceding drive is no cue for a slowing of pace in the sale of Government securities. Rather, the Commissioner of the Federal Home Loan Bank Administration and the Governor of the System are urging that member institutions intensify their activity, particularly in their sales to individual investors. The goal established for all sales to individuals has been set by the Treasury Department at $5,000,000,000. As announced in the October issue of the R E V I E W , Honor Roll standards for the Sixth War Loan have been raised to sales equivalent to 10 percent of associations' assets, the same as in the Fifth Drive. Honor Roll A total of 123 member institutions reported sales of war bonds and stamps equivalent to 1 percent or more of assets during the month of September, while the total of sales by the 2,431 reporting member agents amounted to $11,163,000, about 11 percent less than in August. Sales to others cumulative since January 1, 1943 totaled $832,643,000. Purchases of Government securities by members gained, being more than 50 percent higher than in the earlier month. The September total is reported at $22,283,000, bringing cumulative purchases since the beginning of 1943 to $1,462,558,000. Thus the rise in purchases by members for their own accounts is more than sufficient to offset the decline in sales. The combined total for September is $33,446,000, an increase of more than 23 percent over August. Cumulative combined sales and purchases since the beginning of last year amount to $2,295,201,000. With respect to holdings, reporting institutions indicated an average ratio of 22.3 percent of assets, November 1944 Government securities in their portfolios totaling $1,213,209,000. There follows a list of associations qualifying for the September Honor Roll. NO. 1—BOSTON Calais Federal Savings and Loan Association, Calais, Me. Windsor Federal Savings and Loan Association, Windsor, Vt. NO. 2—NEW YORK Berkeley Savings and Loan Association, Newark, N. J. Collective Savings and Loan Association, Egg Harbor City, N. J. First Federal Savings and Loan Association, Rochester, N. Y. Lakeview Savings and Loan Association, Paterson, N. J. Walton Savings and Loan Association, Walton, Js. Y. NO. 3—PITTSBURGH Cambria County Federal Savings and Loan Association, Cresson, Pa. Coraopolis Home-Building and Loan Association, Coraopolis, Pa. First Federal Savings and Loan Association, Logan, W. Va. First Federal Savings and Loan Association, Wilkes-Barre, Pa. Montour Valley Savings, Building and Loan Association, Imperial, Pa. St. Edmonds Building and Loan Association, Philadelphia, Pa. United Federal Savings and Loan Association, Morgantown, W. Va. Willow Grove Federal Savings and Loan Association, Willow Grove, Pa. NO. 4—WINSTON-SALEM Albemarle Building and Loan Association, Elizabeth City, N. C Atlantic Federal Savings and Loan Association, Baltimore, Md. Bohemian-American Building Association, Baltimore, Md. Cullman Savings and Loan Association, Cullman, Ala. First Federal Savings and Loan Association, Bessemer, Ala. First Federal Savings and Loan Association, Cordele, Ga. First Federal Savings and Loan Association, Decatur, Ala. First Federal Savings and Loan Association, Forest City, N. C First Federal Savings and Loan Association, Gastonia, N. C. First Federal Savings and Loan Association, Jasper, Ala. First Federal Savings and Loan Association, Lake Wales, Fla. First Federal Savings and Loan Association, Sumter, S. C. Fort Hill Federal Savings and Loan Association, Clemson, S. C. Gate City Building and Loan Association, Greensboro, N. C Hamlet Building and Loan Association, Hamlet, N. C. Home Building and Loan Association, Easley, S. C. Home Building and Loan Association, Spray, N. C. Jefferson Federal Savings and Loan Association, Birmingham, Ala. Kingstree Federal Savings and Loan Association, Kingstree, S. C. Lexington County Building and Loan Association,West Columbia, S. C. Mutual Building and Loan Association, Martinsville, Va. Peoples Building and Loan Association, Whiteville, N. C. Tifton Federal Savings and Loan Association, Tifton, Ga. Thomas County Federal Savings and Loan Association, Thomasville, Ga. Wateree Building and Loan Association, Camden, S. C. NO. 5—CINCINNATI Citizens Building and Loan Association, Coshocton, Ohio Citizens Federal Sarings and Loan Association, Dayton, Ohio East Walnut Hills Building and Loan Company, Cincinnati, Ohio Fidelity Building Association, Dayton, Ohio First Federal Savings and Loan Association, Elizabethtown, Ky. Fulton Building and Loan Association, Fulton, Ky. Hawthorne Federal Savings and Loan Association, Cincinnati, Ohio Linwood Savings and Loan Company, Cincinnati, Ohio Star Building Association No. 3 Company, Cincinnati. Ohio Suburban Federal Savings and Loan Association, Covington, Ky. Versailles Building and Loan Company, Versailles, Ohio NO. 6 - I N D I A N A P O L I S First Federal Savings and Loan Association, Gary, Ind. Industrial Savings and Loan Association, East Chicago, Ind. Monon Building, Loan and Savings Association, Monon, Ind. Peoples Federal Savings and Loan Association, Monroe, Mich. NO. 7—CHICAGO Abraham Lincoln Savings and Loan Association, Chicago, 111. Central Federal Savings and Loan Association, Milwaukee, Wis. Colonial Savings and Loan Association, Chicago, 111. Damen Savings and Loan Association, Chicago, 111. First Calumet City Savings and Loan Association, Calumet City, 111. First Federal Savings and Loan Association, Barrington, 111. First Federal Savings and Loan Association, Chicago, 111. Gage Park Savings and Loan Association, Chicago, 111. General Sowinski Building and Loan Association, Cicero, 111. Guaranty Building and Loan Association, Milwaukee, Wis. Haller Savings and Loan Association, Chicago, 111. Investors Savings and Loan Association, Chicago, 111. Kinnickinnic Federal Savings and Loan Association, Milwaukee, Wis. Lombard Building and Loan Association of Du Page County, Lombard, 111. Merrill Federal Savings and Loan Association, Merrill, Wis. Mt. Vernon Loan and Building Association, Mt. Vernon, 111. Naperville Building and Loan Association, Naperville, 111. 47 To the Members of the Bank System: The membership of the Federal Home Loan Bank System cannot obtain proper credit for its efforts in the Government bond drive unless you report your sales and purchases regularly each month. Please forward your monthly report of sales and purchases of Government bonds and war stamps to your District Bank promptly. National Savings and Loan Association, Chicago, 111. New City Savings and Loan Association, Chicago, 111. New London Savings and Loan Association, New London, Wis. Peoples Savings and Loan Association, Milwaukee, Wis. Prairie State Savings and Loan Association, Chicago, 111. Reliance Building and Loan Association, Milwaukee, Wis. Sacramento Avenue Building and Loan Association, Chicago, 111. Table Grove Building and Loan Association, Table Grove, 111. United Savings Association, Taylorville, 111. NO. 8—DES MOINES Fidelity Building and Loan Association, Winona, Minn. First Federal Savings and Loan Association, Jamestown, N. Dak. Home Building and Loan Association, Joplin, Mo. Independence Savings and Loan Association, Independence, Mo. Iowa Falls Federal Savings and Loan Association, Iowa Falls, Iowa Perry Federal Savings and Loan Association, Perry, Iowa Public Service Company's Savings and Loan Association, Kansas City, Mo. Sentinel Federal Savings and Loan Association, Kansas City, Mo. NO. 9—LITTLE ROCK Amory Federal Savings and Loan Association, Amory, Miss. Atlanta Federal Savings and Loan Association, Atlanta, Tex. Continental Building and Loan Association, New Orleans, La. Electra Federal Savings and Loan Association, Electra, Tex. Equitable Building and Loan Association, Roswell, N. Mex. First Federal Savings and Loan Association, Beeville, Tex. First Federal Savings and Loan Association, Belzoni, Miss. First Federal Savings and Loan Association, El Dorado, Ark. First Federal Savings and Loan Association, Helena, Ark. Greater New Orleans Homestead Association, New Orleans, La. Guaranty Savings and Homestead Association, New Orleans, La. Helena Federal Savings and Loan Association, Helena, Ark. Henderson Federal Savings and Loan Association, Henderson, Tex. Inter-City Federal Savings and Loan Association, Louisville, Miss. Jennings Federal Savings and Loan Association, Jennings, La. Nashville Federal Savings and Loan Association, Nashville, Ark. Natchez Building and Loan Association, Natchez, Miss. Ponchatoula Homestead Association, Ponchatoula, La. Quanah Federal Savings and Loan Association, Quanah, Tex. Searcy Federal Savings and Loan Association, Searcy, Ark. NO. 10—TOPEKA Citizens Federal Savings and Loan Association, Wichita, Kans. Equitable Building and Loan Association, Fremont, Nebr. First Federal Savings and Loan Association, Shawnee, Okla. First Federal Savings and Loan Association of Sumner County, Wellington, Kans. Home Federal Savings and Loan Association, Ada, Okla. Valley Federal Savings and Loan Association, Hutchinson, Kans. NO. 11—PORTLAND Auburn Federal Savings and Loan Association, Auburn, Wash. First Federal Savings and Loan Association, Pendleton, Oreg. First Federal Savings and Loan Association, Sheridan, Wyo. First Federal Savings and Loan Association, Walla Walla, Wash. Raymond Federal Savings and Loan Association, Raymond, Wash. NO. 12—LOS ANGELES California Savings and Loan Company, San Francisco, Calif. Central Federal Savings and Loan Association, San Diego, Calif. First Federal Savings and Loan Association, Huntington Park, Calif. Building Materials After V-Day • B U I L D I N G materials and equipment will probably keep pace, at least, with the demand for supplies for residential construction immediately after the war. This information is gathered from a survey made by the Technical Division of the National Housing Agency. The survey points out that 48 various parts of the industry will require from six weeks to seven months to reconvert to a peacetime basis. However, that rate should present no serious time differential as compared with the probable rate of expansion in residential construction. With a few exceptions—for example, mechanical refrigerators, metal plumbing fixtures, stokers and certain-type oil burners—the production of materials, components and equipment needed for the post-war housing program is under way. If this is not the case, facilities for making these items are readily convertable. I t is expected that the most critical item, refrigerators, W'ill not take longer than six or seven months to be produced in quantity, even if reconversion in the entire industry must start from the very beginning. Within two months after labor and shipping facilities are made available, the National Housing Agency believes that general building materials supplies can balance the demand. On only a few items,—as, for instance, metal lath, where facilities are now being used for aircraft landing mats—there is a problem of returning to peacetime production. The problem of reconversion is, generally, one of labor and the acquisition of raw materials now being employed for military use, the survey shows. This is true for copper wire, cable, steel pipes and fittings, clay products and other essentials. Nails and other steel wire production is close to 90 percent of the peak, to fulfill war demands. "Reliable sources," it is reported, have indicated that retail lumber yards may be able to build up adequate inventories within six weeks to three months after V-day. I t seems that the lumber industry will respond no more slowly than the demand for new residential construction. Loss of labor to higher paying war industries, and deteriorated equipment which can be restored rapidly, pose the major problems in the logging industry. Plumbing and heating equipment now is being made in volume, and it is estimated that within three months there would be a supply sufficient to meet demand. " A case in point is the recent one of five producers of cast iron bathtubs who were able to start from scratch and within 90 days reach a production of 45,000, in spite of war-born prices and shortages of labor, fuel, and pig iron." I t is expected that an adequate quantity of consumers' durable goods will be available for residential use within seven months. The victory in Europe may bring with it " production of consumer durables on a relatively high level." Federal Home Loan Bank Review The Road to M o r e and Better Housing (Continued from p. 39) I I mortgage insurance on new homes under the local H-2 and H - 3 quotas. Title VI insurance will hereafter be reserved for H - 1 war housing, with certain specified exceptions. I t may be used in the H - 2 program for additions to projects which were built under H - 1 as well as in some instances, where conditions require and warrant the use of Title VI, for multi-family rental projects under the H-2 program. Easing of Materials Limitations Just as conditions now warrant the raising of some price ceilings, so do they permit the lifting of certain restrictions on the use of building materials. These provisions are contained in recent revisions of Schedules I and I I of the W P B Limited Preference Rating Order P-55-c. The War Housing Construction Standards were amended to retain control of the total amount of dimension lumber but to permit flexibility in room sizes b}T removing the restrictions on floor areas permitted in a dwelling unit. A change has also been made in the War Housing Critical List which previously contained all the materials that might be used in residential construction. I t now includes only those materials for which a priority rating may be used, thus enabling builders to make use of any other materials as they become available without a preference rating. be charged for the apartments will be subject to OPA regulations. Obviously there is a long way to go before the housing situation approaches a normal, not to say an ideal, state. L-41 is still a wartime necessity and has been affected neither by fixing new ceiling prices, nor by relaxing limitations on building materials. Nor does the removal of all the occupancy restrictions on H-2 housing mean that everyone will immediately be taken care of in just the way he might wish. These measures are still limited in scope but they do represent tangible steps on the road to more and better housing. Jt&l DIRECTORY £m I P CHANGES I P S E P T E M B E R 1 6 — O C T O B E R 15, 1944 Key to Changes * Admission to Membership in Bank System **Termination of Membership in Bank System #Federal Charter Granted ##Cancelation of Federal Charter 01nsurance Certificate Issued 001nsurance Certificate Canceled DISTRICT N O . 2 N E W JERSEY: ' Ocean City: **Ocean City Building and Loan Association of Ocean City, N. J., 801 Asbury Avenue. East Orange: #Triumph Federal Savings and Loan Association, 227 North Eighteenth Street. Plainfield: #0Central Federal Savings and Loan Association, 240 West Front Street. N E W YORK: Hudson: *Hudson Savings and Loan Association, 419H Warren Street. DISTRICT N O . 3 PENNSYLVANIA: Conversion Still another form of relief has been provided for areas suffering from congested housing conditions. Apartment houses and other existing dwellings may now be authorized for remodeling or conversion to provide a larger number of quarters. Because of the relatively small amounts of materials which will be needed for this type of work, particularly lumber— the most critical—it is felt that no harmful effects will result now by diverting these supplies from other essential needs. Applications for remodeling are to be handled by local FHA offices; and approval authorizes the applicant to extend a priority rating and use an allotment symbol for the purchase of materials and equipment which will be restricted to those permitted under the War Housing Critical List. The rents which may November 1944 Philadelphia: **The Kensington Building Association, 1523 West Girard Avenue. Pittsburgh (Millvale): **Shaler Building and Loan Association of Shaler Township, 1427 Evergreen Avenue. **Crescent Building and Loan Association #2, 119 South Twelfth Street. DISTRICT N O . 4 NORTH CAROLINA: Carthage: **Citizens Building and Loan Association. DISTRICT N O . 5 OHIO: Alliance: #0 Alliance Federal Savings and Loan Association, 337 Main Street. TENNESSEE: Pulaski: **Pulaski Federal Savings and Loan Association. * DISTRICT N O . 7 WISCONSIN: Madison: *The Home Savings and Loan Association, 1 West Main Street. DISTRICT N O . 9 TEXAS: El Paso: *0 First Savings and Loan Association of El Paso, 315 Texas Street. DISTRICT N O . 10 NEBRASKA: Lincoln: **American Savings and Loan Association, 133 North Eleventh Street. 49 RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS BY YEARS 220 ! 1 /PRIVATE 1 S 2 FAMILY CONSTRUCTS v-*. DWELL. UNITS (FED. HOME LOAN BANK ADM.) (U. S. DEPT OF LABOR RECORDS) 180 140 / *4 1 w / a L/V. i_em/. AS* >VGS. :D. HOME LOAN B A N K ADM.) f v" ^\ y 80 // r * N . . - —•* 1 I I I " ' 1 1 iV- . /" / \ / ^ CONSTRUCTION / * Tv / v - ^ S V G S . a LN. LEND. Lx^ /VUIvr«niw- | fNONFARM reJRECLOSURES FORECLOSURES (FED. 20 1 1_L_L_ _! 1, ,._! 1 I 1 0 140 1 RENTS BUILDING I20f I 1 1 1 1 1 1 1 1 1 PRICES*. ^ B l /LD/f JG A' ATEI 11AL PRK)FS 1 /\ 1 | RENTS^"^ 9+ ••^«- MATERIAL i i -^ ^ ».^ x.i 80 I 60 300 1 1 VARIATION I y J 40 ioo\ ! jf \ 60 \ •>». I \ .•' 1 100 M0NTHS i a z FAMILY DWELL. UNI iyr • 1 1 /PRIVATE \ \ 120 BY ! ' : ! "1 ADJUSTED FOR SEASONAL i i 200 160 1935^1939= 100 (U. S. DEPT. OF LABOR) 1 r- V 1 1 1 1 ^ 1 1 lAl 1 1 A V ! 1 1 | I I I I 1| 1 1 I | I | i i i i I i i ADJUSTED FOR SEASONAL VARIATION I K 1I - •v 280 260 240 / /ND ;STA>IAL PROi OUCT /o/v- 220 (FED RESE RVE B()ARD) / 200 / m4 / 160 140 120 /IVUUfvic / too ^7 80 rMrmciv i o (U. S. DEPT. OF COMMERCE A > rji^ ) -v^ "^ Is, ^ .• i__ 'IK LIQUID ASSETS '7C '77 '•ZQ ^ M ="G. •iQ .••*' ."'* -.*••- y ,*\.•4* * s INCC)ME PAYNfENT 5 #.» *"\ [••••••• "••••..•*••• "v MFC . EN PLO (MEl \IT / /. EMPLOYMENT ^* X k ..•*'* , PRODUCTIONS* ^ " * V ,-»• / / 180 60 ///DUS TRIAi _ / •/in 1 1 •/ii *AO u A LA 1 I i i ^ 194 2 WLUONSMORTGAGE RECORDINGS-ALL LENDERS 1 1 1l 1 1 !1 19 43 1 1 1! ! ! 1 \A 1 ! 194 4 REPURCHASE RATIO $500|- (9 4 4 x . • ' ,,*»* ^ 194 v /' /< ^ -. 43 JAN. FEB. MAR. APR. MAY 50 .^*"""*« JUN. JUL. AUG. SEP OCT NOV. DEC. Federal Home Loan Bank Review « « « MONTHLY SURVEY » » > HIGHLIGHTS /. September showed an over-all decline of 22 percent in residential construction with decreases reported for both public and private construction. II. Spotty declines in home-mortgage financing resulted in only a small drop in this activity for the country as a whole, with lending during September continuing at a high level. A. Savings and loan associations accounted for the highest proportion of nonfarm mortgage recordings since this statistical series was started in 1939. B. Individual lenders also achieved new peaks both in proportion to total recordings and in dollar volume. III. The average cost of constructing the standard 6-room house rose fractionally due to gains in labor charges. IV. Continuing the 10-year downward movement, foreclosures during the third quarter were 8 percent below the preceding 3 months and 33 percent less than in the corresponding period of 1943. V. Total resources of insured savings and loan associations registered a gain of 13 percent in the first 9 months of 1944. A. Liquid assets of insured institutions rose to 27 percent of the total in September. B. Private repurchasable capital in insured associations showed a gain of $67,300,000 for the month. VI. Bank System advances were considerably below the peak attained in September 1943, with each Bank reporting an excess of repayments over advances during September 1944. VII. Despite a fractional decline in industrial production, money in circulation rose during the month and at the same time the volume of retail sales gained. • BUSINESS C O N D I T I O N S circulation increases Money in In September the general level of industrial production fell off fractionally, according to reports of the Federal Reserve Board, the level for fche month standing at 231 percent of the 1935-1939 average, seasonally adjusted. This compares with the 232 percent in August which represented a 2-point gain above July after a gradual and irregular decline from the peak of 247 percent attained a year ago. September's slight drop reflects a diminished output of steel, aluminum and magnesium as well as decreased activity in the manufacture of durable goods. Money in circulation gained by more than $528,000,000 during the month, a rise about 66 percent higher than the increase recorded in the corresponding month of last year. This occurred despite the inroads made by quarterly instalments on income taxes and the decline in production activity." Department store sales showed a seasonal increase, standing about 14 percent above the level of a year ago, and continued in the opening weeks of October to maintain a volume about 16 percent larger than in the corresponding weeks of 1943. However, freight-car loadings, like industrial production, were lower than they were a year ago. The combined index of wholesale prices was at 129.1 percent of the 1935-1939 average in September, Noyember 1944 • * showing an advance of 0.2 points over the preceding month due principally to gains in the wholesale prices of farm goods. With respect to money rates, the Secretary of the Treasury made an interesting comment last month when he stated that he anticipated no appreciable rise in interest rates in the foreseeable future. Pointing out chat savings are now abundant and promise to be adequate to meet all likely demands, it was observed that the Government expects to be able to refund obligations as they come due at rates comparable to those now prevailing. In connection with this, attention was called to rates prevailing during the first World War. As compared with those, present interest rates represent an annual savings to the taxpayer of approximately $4,000,000,000. The Treasury Department also believes it unlikely that there will be any need for a wholesale funding of the public debt into long-term bonds. [1935-1939=100j Type of index Home construction (private) i. Foreclosures (nonfarm)i Rental index (BLS) Building material prices Savings and loan lending i Industrial production i Manufacturing employment i Income payments i •Revised. 1944 Aug. 1944 Percent change 41.7 -4.6 11.2 9.8 +14.3 108.2 108.1 +0.1 129.5 129.5 0.0 189.2 188.9 +0.2 231.0 1 232.0 -0.4 155.0 160.4 -3.4 232.2 ' 233. 7 - 0 . 6 Sept. 1943 Percent change 59.0 15.6 108.0 125.6 173.0 244.0 169.6 215.2 -32.5 -28. 2 +0.2 +3.1 +9.4 -5.3 -8.6 +7.9 i Adjusted for normal seasonal variation. 51 BUILDING ACTIVITY-Long-time low reached D a t a compiled by the U. S. Department of Labor reveal that during September only 6,393 family dwelling units were provided in all urban areas of the country, the lowest number in any one month of the last nine years. This volume of new construction represents a decline of 22 percent from the 8,236 units provided in the preceding month and 54 percent from the 14,016 of September 1943. Both publicly and privately financed construction contributed to the continued downward trend in building activity, the former accounting for only 150 units in September as compared with 965 in August and 3,110 in September of 1943. Privately financed construction in urban areas during September which reached 6,243 units, or 98 percent of the total, was 14 percent lower than in the preceding month and 43 percent lower than in September 1943. In January-September 1944, permits were issued for the construction of more than 74,400 privately financed family-dwelling units, compared with 90,000 during the same period of 1943, a decline of 17 percent. Dwellings financed by public funds totaled less than 13,000 in the first nine months of this year, down 81 percent from the 70,000 units provided during the same months of 1943. As a result of the sharper decline in public construction, made possible by the rapid completion of the war-housing program, the proportion of total construction financed by private funds was 85 percent during the first nine months of 1944, compared with 56 percent in the corresponding 1943 period. On a seasonally adjusted index basis, residential construction in urban areas stood in September at 39.8 percent of the 1935-1939 average, the lowest point in this index for almost a decade. This index is based on 1- and 2-family privately financed construction in urban areas. [TABLES 1 and 2.j B U I L D I N G COSTS—Labor charges vp, materials down The average cost of constructing the standard 6-room frame house rose fractionally during September from an index level of 133.3 to 133.4. Labor charges were the contributing factor since material prices showed no change during the month. In comparison with September 1943, labor costs have risen almost 3 percent while material costs reflect a gain of approximately 6 percent. The total cost index now stands 33 percent above the average month of 1935-1939. Labor costs are 37 percent above the base period, and prices of materials are 31 percent higher. Construction costs for the standard house [Average month of 1935-1939=100] Element of cost Sept. 1944 Aug. 1944 Percent change Sept. 1943 Material Labor 131. 3 '131. 3 137. 4 137.3 0.0 + 0.1 124.4 133. 8 + 5.5 + 2. 7 Total____ 133.4 ^133. 3 + 0. 1 127. 6 + 4.5 r Percent change Revised. The Department of Labor's composite index of wholesale prices of building materials was unchanged during September. Slight increases in brick and tile, cement and "other" building materials were offset by a reduction in the cost of lumber, leaving the total index at 129.5 (1935-1939 = 100). During the past year, the combined index has advanced 3 percent, all components except structural steel having shown an increase during the period. Although lumber decreased fractionally in price during September, the wholesale cost is now 5.4 percent above that of September 1943. [TABLES 3, 4 and 5.] M O R T G A G E L E N D I N G — S m a l l monthly decline registered New mortgage-lending activity of savings and loan associations in September dropped slightly from the near-record August level. These institutions extended an estimated $134,500,000 of new mort- 52 Federal Home Loan Bank Review TOTAL LOANS MADE BY ALL SAVINGS AND LOAN ASSOCIATIONS MILLIONS OF DOLLARS UNITED S T A T E S - B Y T Y P E OF ASSOCIATION BY MONTHS 140 I activity this year than last, with gains varying from 5 percent in the Portland District to 49 percent in the New York area. Lending activity of Federal savings and loan associations rose 34 percent, while loans by state-chartered members and nonmember associations increased 23 percent and 4 percent, respectively. [TABLES 6 and 7.] New mortgage loans distributed by purpose [Dollars amounts are shown in thousands] Purpose Sept. 1944 Aug. 1944 Percent change Sept. Percent 1943 change Construction $5, 923 $7, 589 - 2 2 . 0 $13,211 - 5 5 . 2 Home purchase 101, 884 105, 050 - 3 . 0 86, 016 + 18.4 Refinancing 14, 495 14,152 + 2.4 13, 799 + 5.0 Reconditioning _ 3, 160 3,067 + 3.0 3,229 - 2 . 1 Other purposes 8,993 8,816 + 2.0 6,718 + 33. 9 UNITED S T A T E S - B Y PURPOSE OF LOAN BY MONTHS Total 134, 455 138, 674 - 3 . 0 122, 973 + 9.3 MORTGAGE RECORDINGS—Slight drop shown in September JUN. 1943 SEP DEC. MAR JUN. SEP. DEC. 1944 gage credit during the month, a decline of $4,000,000 or 3 percent. This drop resulted from decreases in home-purchase and home-construction loans of 3 percent and 22 percent, respectively, which more than offset gains of 2 percent in refinancing and " other purpose'' loans and 3 percent in reconditioning loans. With the exception of the New York, Little Rock, and Portland F H L Bank Districts, associations in all regions shared in this decline from August. However, lending during the month was 9 percent greater than in September 1943. All areas, except Boston, Little Rock, Portland and Los Angeles, showed this gain over the preceding year. During the first nine months of this year, savings and loan associations made approximately $1,089,000,000 of new mortgage loans, 25 percent more than the $868,000,000 made during the same months of 1943. Construction and refinancing loans decreased 2 and 5 percent, respectively, in this comparison. Other types of lending increased—home purchase loans, 36 percent; "other purpose" loans, 35 percent; and reconditioning loans, 3 percent. Associations in all Bank Districts reported greater November 1944 Mortgage-financing activity continued at a high level during September, although the volume was slightly less than in August, the peak month of the war years. An estimated 131,000 nonfarm mortgages of $20,000 or under, involving approximately $416,000,000, were filed for public record in September. This decline from the preceding month amounted to 3 percent in both number and amount but followed no clear geographic pattern. Dollarvolume decreases occurred in the District of Columbia and 23 states scattered throughout 10 Bank Districts, while gains were evident in 25 states located in 9 Districts. By type of mortgage lender, percentage declines ranged from 1 percent for insurance companies to 8 percent for mortgagees in the miscellaneous category. Recordings by individuals, the only type to show a gain in this respect, increased less than one-half of 1 percent. One of the most outstanding trends evident from recording statistics is the increasing proportion of total mortgage financing being done by savings and loan associations and individual lenders. The $146, 000,000 of nonfarm mortgages recorded by savings and loan associations during September represented 35.1 percent of total recordings, the highest proportion for any month since this statistical series was undertaken in 1939. In the same months of 1941, 1942 and 1943, these institutions accounted for 53 M o r t g a g e recordings b y t y p e of mortgagee [Dollar a m o u n t s are shown in thousands] T y p e of lender Savings a n d loan associations Insurance companies Banks, t r u s t companies _ _ M u t u a l savings banks Individuals Others PerP e r c e n t P e r c e n t Cumula- cent of change of Sept, tive retotal from recordings 1944 Aug. a m o u n t (9 months) cord1944 ings -2.5 -0. 9 -7.3 -3.0 4-0.3 -8.0 -3.4 Total __ 35. 1 $1,160,620 195, 463 5.4 18. 5 665, 022 119, 664 3.7 25. 1 825, 206 467, 949 12.2 33. 5. 19. 3. 24. 13. 8 7 4 5 0 6 100. 0 3, 433, 924 100. 0 31.9, 30.1 and 33.2 percent, respectively. September recordings by individuals amounted to approximately $104,000,000 and represented 25.1 percent of the total, new peaks in both dollar volume and relative participation in the mortgage market. In September 1941 through 1943, individual mortgagees accounted for 16.6, 18.9 and 21.9 percent, respectively, of total recordings. During the same period the remaining types of mortgagees showed declines in their percentages of total recordings, as follows: Insurance companies— 8.5 to 5.4 percent; banks and trust companies— 23.7 to 18.5 percent; mutual savings banks—4.9 to 3.7 percent; and "others"—14.4 to 12.2 percent. [TABLES 8 and 9.] below the $130,365,000 which was recorded in September 1943. The decline in advances to members was balanced somewhat by an increase in the holdings of Government securities and member deposits. Government securities were considerably above last month's total, $156,976,000 as compared with the August figure of $132,691,000, and showed a rise of 13.2 percent over the $138,601,000 recorded in September of last year. Member deposits were up $4,201,000 from August, and were $2,234,000 above the figure shown in September 1943. Total assets of $276,654,000 were $11,829,000 below the $288,483,000 reported a year ago, but showed a gain of $2,751,000 from the previous month. [TABLE 12.] FLOW OF PRIVATE REPURCHASABLE CAPITAL The net increase in the private repurchasable capital of savings and loan associations amounted to approximately $78,400,000 during September, the result of estimated gross new share investments of $152,600,000 and repurchases of $74,200,000. Although both total investments and repurchases were less than in August, the 14 percent reduction in withdrawals more than offset the 5 percent drop in new investments. The net gain in private capital Share investments a n d repurchases, September 1 9 4 4 [Dollar a m o u n t s are shown in thousands] FHLB SYSTEM—Advances outstanding decline I n September, Bank System advances were very considerably below the all-time peak level attained during September a year ago: $6,993,000 as compared with $56,501,000, a decrease of 87.6 percent. However, September advances exceeded those registered in August by $2,921,000, or 72 percent. Each Bank recorded repayments in excess of advances during September, and the repayments of $25,466,000 registered were the highest ever recorded in September. However, this figure was lower than that for the previous month, which had established a peak for August repayments. Advances outstanding were, in the case of each Bank, below those of the preceding month, and the total balance of advances outstanding was 16.2 percent below that of August. The $95,201,000 in advances outstanding was the lowest of any comparable month since 1935, and was $35,164,000 54 I t e m and period All associations All insured associations UninNonsured members | members Share investments: 1st 9 m o s . 1944_ $1,404,629 $1,097,183 $185, 850 $121, 596 l s t 9 m o s . 1943_ $1,140,124] $854, 520 $160, 671 $124, 933 Percent change + 23 + 28! + 16 -3 $152, 636 $122, 016 $18, 308 $12, 312 Sept. 1944 $111,313 Sept. 1943 $83, 970 $16, 672j $10, 671 Percent change___ + 10 + 37 + 45 + 15 Repurchases: l s t 9 m o s . 1944_ l s t 9 m o s . 1943_ Percent change Sept. 1944 Sept. 1943 Percent change Repurchase ratio (percent): l s t 9 m o s . 1944_ l s t 9 m o s . 1943_ Sept. 1 9 4 4 . . . Sept. 1943___ $805, 312 $601, 847 $122, 657 $80, 808 $722, 763 $497, 596 $124, 069 $101, 098 + 21 -20 -1 + 11 $74, 193 $56, 102 $10, 853 $7, 238 $85, 8891 $60, 0191 $14, 2941 $11,576 -7 -38' -24 -14 57. 3| 63.4 48.61 77.2 54.9 58.2 46.0 71.5 66. 0 77.2 59.3 85. 7 66.5 80. 9 58.8 108. 5 Federal Home Loan Bank Review during September was $4,500,000, or 6 percent, above the net addition in the previous month. During the first nine months of this year, it is estimated that the public placed more than $1,400,000,000 of new investments in the shares of savings and loan associations, 23 percent more than during the same period in 1943. Repurchases also increased in the January-September 1944 period, but at the much smaller rate of 11 percent—from $723,000,000 to $805,000,000. This reduced the ratio of repurchases to new investments this year to 57.3 percent, compared with 63.4 percent in 1943. INSURED ASSOCIATIONS-Substantial FEDEBAL SAVINGS AND LOAN ASSOCIATIONS Assets of the 1,464 Federal savings and loan associations totaled $2,962,000,000 on September 30, a gain of $344,000,000 (13 percent) during the year. The net balance of first mortgages held by these associations rose $109,000,000 to $2,025,000,000, an increase of 6 percent. Federals had $804,000,000, or 27 percent, of their total resources in liquid assets. Government bonds were equivalent to 22 percent of the total; and cash on hand and in banks accounted for 5 percent. Progress in number and assets of Federals [Dollar amounts are shown in thousands] asset-rise shown this year At the end of September, the 2,460 insured savings and loan associations had total resources of $4,714,000,000, a gain of 13 percent since the beginning of the year. The private repurchasable capital of these institutions—$4,093,000,000—was held by approximately 3,900,000 private investors with average accounts of $1,041. On January 1 private investors' accounts in insured associations averaged $980. Although these institutions extended more than $813,000,000 of new mortgage credit during the first nine months of this year, their net mortgage-loan balance increased only $193,000,000 to a total of $3,202,000,000, due primarily to the continued high rate of repayments. During this period, advances from the Federal Home Loan Banks declined from $100,340,000 to $86,840,000 but at the same time other borrowings increased from $15,700,000 to $28,100,000. Insured savings and loan associations received from private investors approximately $122,000,000 in September and paid out $56,100,000 in withdrawals. The ratio of repurchases to new investments, 46 percent, compares very favorably with a ratio of 51 percent in the preceding month and 71 percent in September of last year. Total liquid resources of all insured savings and loan associations continued to expand during September reaching $1,254,000,000, representing nearly 27 percent of total resources. Since the beginning of the year, the U. S. Government bond holdings of these associations have increased from $582,000,000 to $998,000,000—72 percent. On September 30 these investments represented more than 21 percent of total assets as compared with 14 percent at the end of December. Cash on hand and in banks at the end of September amounted to $256,000,000 FORECLOSURES—Downward trend continues The decline in nonfarm real-estate foreclosures, which began more than 10 years ago, continued during the third quarter of 1944 although at a reduced rate. The estimated 4,082 foreclosures which occurred during the July-September period represent a decline of 8 percent from the preceding quarter and 33 percent from the third quarter of 1943. By months, 1,340 foreclosures were concluded in July, 1,255 in August, and 1,487 in September. Seasonally adjusted indexes for these months were 10.3, 9.8, and 11.2, respectively (average month 1935-1939 = 100). During the first nine months of 1944 an estimated 13,272 foreclosures on nonfarm properties were reported, a reduction of 34 percent from the corresponding months of last year. This improvement was widespread, with reductions throughout the 12 Federal Home Loan Bank Districts ranging from 54 percent in the Portland District to 24 percent in the Boston region. The January-September 1944 foreclosure rate of 0.6 per 1,000 nonfarm structures compares favorably with the rate of 0.9 shown during the corresponding period of the preceding year. or 5.4 percent of assets. [TABLE 15.] November 1944 [TABLE 13.] Number Class of association New . Converted _ Total Sept. 30, Aug. 31, 1944 1944 Approximate assets Sept. 30, 1944 Aug. 31, 1944 633 831 634 831 $989, 904 $978, 374 1, 971, 956 1, 956, 273 1,464 1,465 2, 961, 860 2, 934, 647 55 Table 1 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number and valuation of new family dwelling units provided in all urban areas in September 1944, by Federal Home Loan Bank District and by State [Source: U. S. Department of Labor] [Dollar amounts are shown in thousands] All residential s t r u c t u r e s N u m b e r of family dwelling u n i t s Federal H o m e Loan B a n k District and State UNITED STATES. _ Sept. 1944 Sept. 1943 Sept. 1944 S e p t . 1943 S e p t . 1944 -___ 6,393 14,016 $20,429 $40,842 5,538 8,220 $17, 531 $26,659 - 263 937 990 2,701 263 205 990 837 222 2 30 3 6 171 | 708 48 1 885 3 87 1 14 657 1,845 165 1 21 12 222 2 30 3 6 99 48 48 1 6 3 885 3 87 1 14 443 195 165 1 21 12 82 675 1 244 2,233 82 223 244 725 27 55 403 272 87 157 1,167 1,066 27 55 153 70 87 157 509 216 527 251 1,790 997 366 251 1,111 997 ._ 510 17 15 225 11 1,780 10 60 933 4 349 17 15 225 11 1,101 10 60 933 4 __ 908 2,252 2,726 4,743 681 1,061 1,976 2,21b __ 136 217 261 53 36 18 9 178 580 288 462 365 287 95 13 162 333 640 630 72 82 16 16 937 1,121 700 883 856 670 81 7 425 136 51 253 53 36 18 9 125 197 12 242 249 259 31 13 58 333 176 609 72 82 16 16 672 306 38 486 594 617 15 7 155 ._ 423 1,111 1,705 4,294 419 709 1,690 3,014 22 332 69 43 1,038 30 55 1,510 140 76 4,208 10 22 328 69 31 648 30 55 1,495 140 54 2,950 10 __ _. _ _ . _ _ _ _ _ _ _ _ ___ _ ___ _- N o . 2—New Y o r k N e w Jersey __ New York _ _ _ _ _ ______ _ _ N o . 3—Pittsburgh Delaware Pennsylvania W e s t Virginia- _ N o . 4—Winston-Salem _ _ __ Alabama _ D i s t r i c t of C o l u m b i a . Florida Georgia Maryland N o r t h Carolina South Carolina-. _ Virginia _ _ _ _ ____ _ _____ ___ _ _ _ _ _ ___ _ __ _ N o . 5—Cincinnati Kentucky Ohio Tennessee ___ __ _ N o . 6—Indianapolis Indiana.Michigan _____ 390 1,857 1,719 7,281 390 1,285 1,719 5,846 177 213 104 1,753 687 1,032 210 7,071 177 213 82 1,203 687 1,032 196 5,650 _. _. _ ___ 594 876 2,379 3,644 380 698 1,650 3,059 -__ _ _ _ __ 471 123 679 197 1,811 568 2,899 745 265 115 572 126 1,110 540 2,526 533 _. _ 316 34 1,338 41 276 21 1,175 22 66 185 60 2 3 6 12 3 6 14 2 308 831 32 2 2 6 14 2 19 66 181 24 2 3 6 12 3 13 308 844 182 2 2 1,057 1,389 1,874 2,214 1,049 1,101 1,850 1,505 47 219 114 17 660 45 216 180 10 938 24 627 146 7 1,070 21 506 211 18 1,458 47 219 114 17 652 45 56 74 10 916 24 627 146 7 1,046 21 25 17 18 1,424 161 381 321 945 157 377 311 936 35 32 31 63 30 191 43 117 73 48 125 75 70 449 131 295 31 32 31 63 30 187 43 117 63 48 125 75 70 440 131 295 _ 370 1,313 1,261 4,337 367 876 1,252 3,007 ______________ _ _ _ _ _ ____ ... - 42 20 78 34 139 57 8 23 287 418 433 144 126 73 172 121 456 313 6 62 1,008 1.390 1,493 378 42 20 78 34 136 57 8 20 101 418 325 4 126 73 172 121 447 313 6 56 223 1,390 1,316 16 1, 302 2,940 4,082 7,412 1,108 1,413 3, 563 4,493 28 1,260 14 87 2, 819 34 28 4,035 19 202 7,108 102 28 1,072 8 27 1,352 34 28 3, 521 90 4,301 102 N o . 7—Chicago Illinois Wisconsin .. __ _______ ___ __ ___ _ . ___ N o . 8—Des M o i n e s Iowa MinnesotaMissouri North Dakota South Dakota _ _ _ _ _ ___ _ _ ___ _ ___ _ _ _ _ _ _ __ __ _ _ _ _ _ _ ____ _ __ _ _ _ __ ___ ___ __ _ _____ _____ _ _.__ N o . 9—Little R o c k Arkansas _ _ _ Louisiana __ ___ ___ Mississippi _ _ N e w Mexico. _ _ _ _ _ _ _ _ T e x a s __ _ _ _ _ _ •_ _ __ _ _ _ _ _ ._ _ _ . ______ _______ _ _._ . ___ N o . 10—Topeka Colorado- Kansas Nebraska Oklahoma __ _ __ _ _ ___ __ __...___ _ _.__ _ _ _ _ ________ _ _ _ _ _ _ _ _ __ _ _ N o . 11—Portland I d a h o _ __ _ Montana _ Oregon. _ _ _ Utah _ Washington. Wyoming. _ _ _ _ ___ _ _ ... _____ N o . 12—Los A n g e l e s . . _ _ _ _ _ _ _ Arizona.. CaliforniaNevada.. 56 _ _ __ ___ __ 3 1 Sept. 1943 .__ ___ __ __ ___ __ _ _. Permit valuation Sept. 1943 ._ Connecticut Maine Massachusetts New Hampshire Rhode Island Vermont Permit valuation Sept. 1944 ._ N o . 1—Boston All p r i v a t e 1- a n d 2-family s t r u c t u r e s N u m b e r of family dwelling u n i t s . __ ! ___ ________| ___ _ __ _ _ _ _ _ - ___ - _ - 1 Federal Home Loan Bank Review Table 2 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number and valuation of new family dwelling units provided in all urban areas of the United States [Source: IT. S. Department of Labor] [Dollar amounts are shown in thousands] N u m b e r of family dwelling u n i t s M o n t h l y totals T y p e of construction Sept. 1944 P r i v a t e construction _ _ _ .. 1-family dwellings .. 2-family dwellings 1 3- a n d m o r e - family dwellings 2 . _ P u b l i c construction . _ __ _ ._ ... _ Total urban construction.. 1 2 A u g . 1944 6,243 7,271 4,963 575 705 5,441 655 1,175 Permit valuation M o n t h l y totals J a n . - S e p t . totals Sept. 1943 1944 1943 J a n . - S e p t . totals Sept. 1944 A u g . 1944 Sept. 1943 1944 1943 10, 906 74,441 90,000 $19, 780 $22,849 $34, 209 $234, 716 $278, 724 6,685 1,535 2,686 57,166 7,525 9,750 58, 585 12,130 19, 285 15, 500 2, 031 2,249 17,069 2,426 3,354 22, 350 4, 309 7,550 180, 098 26,002 28, 616 192, 269 33,672 52, 783 . 150 965 3,110 12,949 69, 749 649 3,577 6,633 34, 257 147,643 6,393 8,236 14, 016 87, 390 159, 749 20, 429 26, 426 40,842 268,973 426, 367 Includes 1- and 2-family dwellings combined with stores. Includes multi-family dwellings combined with stores. Table 3 . — B U I L D I N G COSTS—Index of building costs for the standard house in representative cities in specific months [ [Average month of 1935-1939=100] 1944 1943 1942 1941 1940 1939 1938 Oct. Oct. Oct. Oct. Oct. F e d e r a l H o m e L o a n B a n k D i s t r i c t a n d city Oct. N o . 2—New Y o r k : Atlantic Citv, N . J C a m d e n , N . J__ _ Newark, N . J Albany, N . Y. Buffalo, N . Y . W h i t e Plains, N . Y . . . N o . 6—Indianapolis: Evansville, I n d . . . . . Indianapolis, Ind.* South Bend, Ind._ Detroit, Mich.* . Grand Rapids, M i c h . . N o . 8—Des M o i n e s : D e s M o i n e s , Iowa*. _. Duluth, Minn _ St. P a u l , M i n n K a n s a s C i t y , M o _ . _. . St. Louis, M o . * . F a r g o , N . Dak.*__. Sioux Falls, S. D . * . _ .. _. _ _ __ ... _. .. _ __ _ . _ _ . . . . . . . . . . N o . 11—Portland: Boise, I d a h o * . ._ _ Great Falls, M o n t . . . . . . _ P o r t l a n d , Oreg.* Salt L a k e C i t y , U t a h * Seattle, W a s h . * Spokane, Wash . . Casper, W y o . _ . . . . __ ... . . . . __ . ._ ....___ . . . . _ _ _ _ _ . . . . . . __ . . . _ . . _. _ . .... . ... ... _ . . . ._ ._ . ... .. ... . . .. Apr. 137.5 143.6 159.3 143.8 142.1 149.1 138.4 140.7 157.1 140.4 140.0 148.7 Jan. 138.0 135.6 149.7 140.6 134.7 136.2 125.4 * 138.9 153.9 134.2 128.1 127.8 122.1 r 139.2 135.8 122.5 121.6 123.7 103.9 114.2 107.0 102.9 101.6 * 102. 2 105.5 106.5 105.6 101.9 104.7 99.0 99.4 101.5 103.4 101.1 105.0 99.1 126.4 129.9 132.5 142.1 128.5 126.2 128.5 132.3 128.2 128.5 119.7 121.5 120.6 119.2 ' 120. 2 110.7 99.1 107.8 105.1 106.8 106.7 101.0 103.7 104.0 102.9 100.6 101.7 94.9 108.0 106.5 116.0 118.5 119.2 116.5 118.1 118.7 ' 129.4 119.9 118.7 126.3 111.2 109.6 112.7 ' 116. 2 120.1 108.8 114.7 104.8 104. 3 107.5 * 103. 0 103.3 100.8 105.0 102.0 102.3 108. 2 * 105. 9 98.2 102.3 101.4 99.8 104.7 107.9 126.7 125.5 132.8 121.0 128. 3 128.0 121.3 122.6 117.4 111.0 111.9 118.8 120.3 115.1 101.8 108.4 101.3 99.3 103.8 103.9 102.2 95.0 103.8 101.3 97.8 102.5 102.8 100.9 104.0 125.3 125.3 125.3 125.3 143.4 152.6 131.1 143.4 149.6 131.1 143.4 148.4 131.1 120.8 120.8 125. 7 124.6 137.6 122.6 125.1 126.9 118.1 123.0 121.9 137.6 122.6 124.7 125.7 118. 3 122.9 121.9 138.0 118.5 123.8 125.7 133. 0 118.8 137.6 123. 2 132.8 122.9 111. 7 132.7 118.8 137.7 123.3 131.8 122.9 111.7 132.7 118.8 135.6 123.3 131.8 122.9 111.7 124.3 125.1 127.1 137. 3 123. 2 132.7 Oct. 136.9 138.8 154.5 140.6 135.8 141.5 143.4 152.1 131.1 133.0 _ . July 118.2 122.4 124.4 97.4 102.1 107.8 101.9 98.7 100.5 102.0 101.0 101.5 * Indexes of October 1940 and thereafter have been revised in order to use retail material prices collected by the Bureau of Labor Statistics. * Revised. 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 wideboard siding with brick and stucco as features of design. Best quality materials and workmanship are used. 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 wallpaper nor other wall nor ceiling finish on interior plastered surface, lighting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades. The index reflects the changes in material and labor costs in the house described above. Allowances for overhead and profit, which were previously included in the total costs, were based upon a flat percentage of the material and labor costs and therefore did not affect the movements of the series; no such allowances are included, now that the index is expressed in relative terms only. Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks and driveways; they do not include architect's fee, cost of building permit, financing charges, nor sales costs. In figuring costs, current prices on the same building materials list are obtained every 3 months from the same dealers, and current wage rates are obtained from the same reputable contractors and operative builders. The Bureau of Labor Statistics furnishes building material prices for some cities. Although shortage of materials and priority restrictions preclude the actual construction of this house under wartime conditions, tests indicate that the indexes measure fairly closely the cost changes for smaller frame structures that now can be built. November 1944 57 Table 4 . — B U I L D I N G COSTS—Index of building costs for the standard house [Average m o n t h of 1935-1939 = 100] (Sept. 1944 ! Aug. 1944 J u l y 1944 J u n e 1944'Mav 1944 A p r . 1944 M a r . 1944 F e b . 1944 J a n . 1944 i 1 ! f E l e m e n t of cost ! Material Labor ...J Total cost.-. - - Dec. 1943 N o v . 1943 Oct. 1943! S e p t . 1943 131.3 137.4 ' 131. 3 137. 3 131.0 137. 3 r 130.7 137.5 130.3 137.3 129.7 137.0 129.1 136.8 128.8 136. 5 | 127.8 136.1 127.6 136.0 126.8 135.6 126.0 135.0 124.4 133.8 133.4 r 133.1 133.0 132.7 132.2 131.7 1 131.4 ! 130.6 130.5 129.8 129.1 127.6 133.3 ! r Revised. Table 5 . — B U I L D I N G COSTS—Index of wholesale prices of building materials in the United States [1935-1939 = 100; c o n v e r t e d from 1926 base] [Source: U . S. D e p a r t m e n t of L a b o r ] Period All b u i l d i n g materials Brick a n d tile Lumber Cement Paint and paint materials Plumbing and heating Structural steel Other 1942: S e p t e m b e r . 123.3 108.6 103.4 148.3 123. 4 123.6 103.5 112.3 1943: S e p t e m b e r . October NovemberDecember.. 125.6 125.8 126.3 126.6 109.0 109.0 110.1 110.1 102.7 102.7 102.7 102.7 162.7 163. 3 164.1 164.3 126.1 126.4 126.9 127.0 118.5 118. 5 120.6 120.6 103.5 103.5 103.5 103.5 110.3 110.5 110.5 111.2 1944: J a n u a r y February.. March April May June July August September. 126.7 126.9 127.5 128.6 129.2 129.4 129.4 129.5 129.5 110.3 110.2 110.4 110.4 110.6 110.7 110.8 110.8 111.7 102.7 102.7 102.7 103.1 105.8 105.8 105.8 .105. 8 106.3 164. 4 165.3 167.8 170.8 171.5 171.5 171.7 171.9 171.5 127.2 127.7 128.4 128.4 128.7 130.0 129.7 129. 7 129.7 120.6 120.6 120.6 120.6 121.4 121.4 121.4 121.4 121.4 103.5 103.5 103.5 103.5 103.5 103.5 103.5 103.5 103.5 111.2 111.2 111. 111.2 111.4 111.4 111.5 111.6 111.7 Percent change: S e p t e m b e r 1944-August 1944 S e p t e m b e r 1944-September 1943.. fl.0 +3.1 +0.8 +2.5 +0.5 +3.5 -0.2 +5. 4 0.0 +2.9 0.0 +2.4 0.0 0.0 +0.1 +1.3 Table 6 . — M O R T G A G E LENDING—Estimated volume of new home mortgage loans by all savings and loan associations, by purpose and class of association [ T h o u s a n d s of dollars] Class of association P u r p o s e of loans Construction 1942 January-September September . H o m e purchase Refinancing Reconditioning L o a n s for all o t h e r purposes Total loans Federals $573, 732 $165, 816 $41,695 $78,820 $1,050, 501 $412, 828 162,119 12, 449 431,780 58,060 125,882 14,063 32,991 3,804 61, 450 5,679 814, 222 94,055 321, 729 37, 987 1,183,961 $190, 438 State members Nonmembers $161, 593 365, 951 42, 249 126, 542 13,819 106,497 802,371 167,254 30,441 77, 398 511, 757 539,299 132,905 January-September September October November.. December 81, 213 13, 211 7,452 6,928 10, 904 581, 403 86, 016 83, 259 73,053 64,656 127,912 13, 799 14,025 12,767 12, 550 22, 639 3,229 2,874 2,638 2,290 55,016 6,718 7,540 7,670 7,172 868,183 122, 973 115,150 103,056 97, 572 372, 730 54,100 50, 576 44,804 43, 647 396,193 55,907 52,026 47,108 43, 972 99,260 12,966 12,548 11,144 9,953 1944: J anuary-September January.... February March April May June July August September 7,872 11,195 9,127 13, 484 7,338 9,663 7,078 7,589 5,923 790, 866 55,000 66,138 81,846 85,568 98,872 103,276 93, 232 105,050 101, 884 121, 740 9,976 11,955 14, 422 13,491 14, 415 14,963 13, 871 14,152 14, 495 23, 418 1,521 1,960 2,266 2,679 2,967 2,957 2,841 3,067 3,160 74,019 6,609 6,916 8,469 7,421 8,931 9,850 8,014 8,816 8,993 1,089, 312 80,978 98,164 116,130 122,643 132, 523 140, 709 125,036 138, 674 134,455 500,904 37,076 44,144 53,883 57,045 59,229 64,474 57,164 64,400 63,489 485, 563 35,456 44,139 50,686 54, 212 60,141 63, 851 56, 539 61, 377 59,162 102, 845 8,446 9,881 11, 561 11, 386 13,153 12, 384 11, 333 12,897 11,804 1943 58 Federal Home Loan Bank Review Table 7.—LENDING—Estimated volume of new loans by savings and loan associations Table 8.—RECORDINGS—Estimated nonfarm mortgage recordings, $20,000 and under S E P T E M B E R 1944 [Thousands of dollars] [Dollar amounts are shown in thousands] C u m u l a t i v e new cans (9 m o n t h s ) N e w loans Federal Home Loan B a n k District a n d class of association September 1944 UNITED STATES .. ... N e w Y o r k _. 1943 Percent change 63, 489 59,162 11,804 64, 400 61, 377 12, 897 54,100 55, 907 12, 966 500, 904 485, 563 102,845 372, 730 396,193 99, 260 +34.4 +22.6 +3.6 9,753 10,353 11,094 79,150 70,109 +12.9 4,217 4,493 1,043 4,045 5,176 1,132 3,426 6,093 1,575 29, 627 39, 592 9,931 20, 536 38, 254 11,319 +44.3 +3.5 -12.3 13, 953 13, ,032 9,598 95, 598 64,181 +49.0 _. 4,793 7,295 .1, 865 4,359 6,620 2,053 2,629 4,792 2,177 29, 734 49, 682 16,182 15, 879 33,193 15,109 +87.3 +49.7 +7.1 . __ __ 11, 551 11, 866 9,301 90, 931 73, 783 +23. 2 5,363 4,078 2,110 5,129 3,830 2,907 3,892 3,296 2,113 41,410 30,874 18, 647 29, 367 23, 837 20, 579 +41.0 +29.5 -9.4 Federal State member Nonmember Pittsburgh 1944 +25.5 . Federal State m e m b e r . Nonmember September 1943 $134,455 $138,674 $122, 973 $1, 089, 312 $868,183 Federal. State member Nonmember Boston August 1944 - _ Federal., ._ State member Nonmember Winston-Salem. Federal. State member Nonmember - Cincinnati.. _ FederalState m e m b e r Nonmember Indianapolis F e d e r a l . _State member Nonmember 14, 735 15, 338 14, 041 128,012 104, 790 +22.2 7,860 6,024 851 7,673 6,651 1,014 7,617 5,430 994 67, 706 52, 536 7,770 52,938 41, 366 10, 486 +27.9 +27.0 -25.9 23, 920 25, 344 21, 547 188,112 161,110 +16.8 10,383 11,817 1,720 11,345 12, 228 1,771 8, 791 11,166 1,590 78,570 94,185 15, 357 62, 476 86, 002 12, 632 +25.8 +9.5 +21.6 7,345 8,271 6,595 60, 674 52, 402 + 15.8 3,687 3,285 373 4,071 3,777 423 3,184 3,071 340 29, 688 28, 092 2,894 27,125 22, 326 2,951 +9 4 +25.8 -1.9 15, 222 15, 300 12, 979 123,160 87, 437 +40.9 6,924 7,183 1,115 6,817 7,288 1,195 4,952 6,456 1,571 51, 660 61, 427 10,073 33,442 43,844 10,151 +54.5 +40.1 -0.8 Savings Insur- Baanndk s M u tual and loan ance trust savassocia- comcompanies panies ings tions banks Federal H o m e L o a n B a n k District a n d State __ Connecticut. . . . _ Maine -Massachusetts,-----New Hampshire Rhode Island VermontN e w York New Jersey. N e w York Pittsburgh Delaware Pennsylvania W e s t Virginia Winston-Salem Alabama D i s t r i c t of C o l u m b i a Florida Georgia Maryland N o r t h Carolina South Carolina Virginia -. Federal State m e m b e r Nonmember Des Moines Federal. State member Nonmember - __ 9,350 9,396 7,420 68, 610 48, 593 +41.2 __ 5,234 2,916 1,200 5,247 3,304 845 3,613 2,731 1,076 35, 735 24,140 8,735 24, 275 17, 260 7,058 +47.2 +39.9 +23.8 L i t t l e Rock 6,566 6,049 6,667 58,039 44,907 +29.2 __ 3,212 3, 268 86 2,768 3,199 82 2,395 4,167 105 24, 557 32, 820 662 18, 447 25, 728 732 +33.1 +27.6 -9.6 __ - ._ .__ 6,494 6,927 6,017 52,849 43,070 +22.7 3,423 1,862 1,209 3,732 1,997 1,198 3,309 1,660 1,048 27, 558 14,865 10,426 24, 348 12, 539 6,183 +13.2 +18.6 +68.6 4, 610 4,528 ' 4,685 35, 300 33,691 + 2, 790 1,692 t 128 2,855 1,550 123 2, 675 1, 727 283 23,139 10, 818 1, 343 20,890 11, 379 1,422 +10.8 -4.9 -5.6 12, 270 13,029 108, 877 84,110 +29.4 6,359 5,757 154 7, 617 5,318 94 61, 520 46,532 825 43.007 40, 465 638 +43.0 +15.0 +29.3 Federal State member Nonniember Federal _ State m e m b e r Nonmember . Federal State member Nonmember Los Angeles Federal State m e m b e r Nonmember 10,956 | November 1944 5, 603 5, 249 1 104 4.8 3,455 7,739 6,332 2,382 32, 407 314 20 139 1,422 205 1,127 139 '479 83 1,139 851 4,423 635 309 382 1,981 483 2,826 309 547 186 736 44 1,392 21 177 12 7,317 2, 266 18,000 1, 468 2,474 882 11, 616 2,070 6,112 5,873 15,118 6,043 46, 832 3,412 - 851 8,204 1,219 3,040 3,072 661 5, 212 3,699 11, 419 2,040 4,003 13, 703 33,129 10, 595 2,485 6,837 446 6,070 3,558 29, 991 203 9,425 967 131 2,050 304 • 176 5,296 1,365 41 275 405 / 5,152 643 110 3,268 180 936 25, 596 3,459 15,184 2,846 4,879 209 13, 441 3,744 40, 303 515 2,780 1,437 1,602 3,889 2,192 380 2,389 285 277 1,064 139 195 558 187 141 416 382 650 955 90S 343 348 977 209 848 1,243 4,467 1,236 1,863 1,154 641 1,989 240 366 886 434 377 562 267 612 2,304 5,048 8,404 4,366 7,441 4,809 1,823 6,108 2,303 10, 950 558 6,718 4,734 53, 931 429 825 1,049 665 9,531 754 558 301 5,817 600 148 1,520 3,066 4,450 43, 371 6,110 Indianapolis ,7,872 2,676 7,597 10 3,586 2,332 24,073 Indiana Michigan 5,122 2,750 789 1,887 2,925 4, 672 10 1,179 2,407 887 1,445 10, 912 13,161 17, 358 1,347 6,867 21 7,482 8,386 41, 461 13,128 4, 230 817 530 4,622 2,245 21 4,314 3,168 7,768 618 30, 649 10, 812 10, 636 2,072 6,423 158 5,710 3,977 28, 976 2,559 4,358 3,120 416 183 88 672 1,229 55 28 1,532 1,202 3,356 94 239 934 1,589 2,783 181 223 342 665 2,918 39 13 5,455 8,644 13, 406 785 686 8,532 2,498 1,597 6,553 2,384 21, 564 548 2,335 357 173 5,119 70 120 119 2 2,187 234 147 218 143 855 430 1,221 429 269 4,204 38 262 93 27 1,964 1,320 4,085 1,216 614 14,329 7,596 753 2,746 5,338 2,047 18, 480 1,021 2,135 1,216 3, 224 143 120 295 195 596 659 270 1,221 2,778 710 495 1,355 764 194 200 889 5,302 3,818 2,476 8,884 __ 4,739 430 3,662 433 3,273 2,003 14,540 Idaho. . _ Montana __ Orgon -._ Utah... Washington _. . W y o m i n g ._ ___ .__ 400 295 1,152 503 2,207 182 39 3 187 144 57 157 193 245 575 2,302 190 32 330 378 1,301 223 850 191 133 62 453 108 1,233 14 1,059 931 3,370 1,553 7,050 577 _ Illinois Wisconsin - . __ .- Des M o i n e s . Iowa Minnesota Missouri North Dakota South Dakota _._ - Little Rock_. Arkansas Louisiana Mississippi _ N e w Mexico . Texas - Colorado Kansas _ ._. Nebraska Oklahoma Portland Portland 473 1,725 663 8,093 364 962 219 2,907 25,120 641 _. K e n t u c k y . - . __ _ . Ohio Tennessee Topeka... Topeka. .-12,026 28, 668 Cincinnati Chicago -- - . Chicago Total $146,151 $22, 432 $77,000 $15,447 $104,479 $50,676 $416,185 UNITED STATES Boston. Other Individuals mortgagees Los Angeles. * Arizona California N e v a d a .-_ . 158 401 ._ 11, 329 2,479 15,875 24, 858 9,086 63,627 . _ ___ 158 11,096 75 31 200 2,440 15,626 49 8 891 23, 749 218 36 9,041 9 1,316 61, 952 359 59 Table 9 . — M O R T G A G E RECORDINGS—Estimated volume of nonfarm mortgages recorded [Dollar amounts are shown in thousands] Insurance companies Savings and loan associations Mutual savings banks Banks and trust companies Other mortgagees Individuals All mortgagees Period Percent Total Total Percent Total Percent Total Percent Total Percent Total Percent Total Percent 1943: January—September. September October November December $901, 679 126, 586 122, 832 111,818 101,176 32.3 33.2 31.8 31.6 $209, 422 23, 996 25,141 23,115 22,188 7.5 6.3 6.5 6.5 6.7 $545,777 72,140 74, 875 64, 877 66, 699 19.6 19.0 19.4 18.3 20.1 ;109,978 15, 332 15,023 15,141 12, 227 3.9 4.0. 3.9 4.3 3.7 $611, 512 83, 320 87,430 82, 307 76,432 21.9 21.9 22.6 23.3 23.1 $412,068 59,435 61,002 56,415 52, 267 14.8 15.6 15.8 16.0 15.8 $2, 790,436 380, 809 386, 303 353,673 330,989 100.0 100.0 100.0 100.0 100.0 1944: January—September January February March April May June July August September 1,160, 620 89, 887 101, 705 121, 210 127, 429 139, 748 145, 893 138, 762 149, 835 146,151 33.8 29.8 32.8 32.9 34.5 34.5 34.6 33.7 34.8 35.1 195, 463 20, 585 18, 753 22, 660 19, 671 21, 794 22,215 24, 707 22,646 22,432 5.7 6.8 6.1 6.1 5.3 5.4 5.3 6.0 5.2 5.4 665, 022 62,180 60, 346 70, 570 72, 438 79,083 79,453 80,858 83,094 77,000 19.4 20.6 19.5 19.2 19.6 19.5 18.8 19.7 19.3 18.5 119, 664 9,731 9,294 11, 255 12, 338 14,882 15, 536 15, 261 15, 920 15, 447 3.5 3.2 3.0 3.1 3.4 3.7 3.7 3.7 3.7 3.7 825, 206 72,600 72, 246 89,136 89, 466 95, 730 99,140 98,194 104,215 104,479 24.0 24.0 23.3 24.2 24.2 23.6 23.5 23.9 24.2 25.1 467,949 46, 966 47, 300 53, 409 47, 926 53. 858 59,394 53, 354 55,066 50, 676 13.6 15.6 15.3 14.5 13.0 13.3 14.1 13.0 12.8 12.2 3,433,924 301, 949 309,644 368, 240 369, 268 405, 095 421,631 411,136 430, 776 416,185 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Table 1 0 — S A V I N G S — S a l e s of war bonds x Table 1 1 . — F H A — H o m e mortgages insured * [Thousands of dollars] Total Redemptions Period Series E 19412 $1,622,496 $207,681 $1,184,868 $3,015,045 $13,601 5,988, 849 652,044 2,516,065 9,156,958 245, 547 10,344,369 1, 400,159 1,340,148 665, 293 727, 558 745,123 138, 984 93,124 23,449 24,081 2,639,908 387,412 274,877 109, 404 101,378 13,729,402 1,926, 555 1,708,150 798,146 853,017 1, 506, 894 148,498 137,496 164,412 200, 840 1,084,637 2,102,345 575, 714 605,709 624, 253 1,349, 794 1, 686, 509 499,357 590,827 126, 825 157, 422 22, 933 19,306 15, 287 115,119 101,082 17, 807 15,953 486, 942 521,702 110,347 113,528 111,088 377, 284 337,459 85,272 85, 286 1, 698, 404 2,781,469 709,054 738, 543 750, 628 1,842,197 2,125,050 602,436 692,066 180,965 177,980 261, 549 230, 614 271, 597 241, 278 220,145 272,125 277,045 1942 1943._ September October November December 1944 January February March April May June July August September __ Series F [Premium paying; thousands of dollars] Series G i U . S . Treasury War Savings Staff, Actual deposits made to the credit of the U. S. Treasury. 2 Prior to May 1941: "Baby Bonds." Title II Period Title VI Existing New 1943: September. October. . . November. December. $1,479 818 833 747 $18,737 18,856 20, 499 17,401 $46,365 48, 571 48,421 42,979 1944: January... February.. March April May June July August September 592 249 250 130 81 81 82 90 79 18,397 13, 795 12, 729 13, 200 18,319 17, 768 18,322 20, 256 19,967 49,003 40,616 41, 620 36, 793 37,739 34, 238 42, 322 48,166 42, 592 Total insured at end of period 2 $5, 226,948 5, 295,193 5, 364,946 5,426,073 5,494, 065 5, 548,725 5, 603, 324 5,653,447 5, 709, 586 5, 761,673 5,822,399 5,890.911 5,953, 549 1 Figures represent gross insurance written during the period and do not take account of principal repayments on previously insured loans. 2 Includes Title I, Class 3, amounts that were shown prior to January 1943. Table 1 2 . — F H L B A N K S — L e n d i n g operations and principal assets and liabilities [Thousands of dollars] L e n d i n g operations S e p t e m b e r 1944 C a p i t a l a n d principal liabilities S e p t e m b e r 30, 1944 P r i n c i p a l assets S e p t e m b e r 30, 1944 Federal Home Loan B a n k Advances Repayments Advances outstanding $5, 728 14, 524 10, 924 6,962 6,521 9,226 10,557 7,090 4,393 4,394 1,072 13, 810 $1, 712 1,477 2,889 1,105 2,073 1,140 7,660 376 928 1,034 859 2,654 $15,907 24.481 9,573 10, 002 23, 481 13, 221 13. 291 11, 751 9,167 7,565 8,490 10, 047 $19,907 27, 431 16, 776 17, 739 25, 650 14, 379 22, 820 12, 826 12, 477 10, 654 8,507 15, 879 $2. 000 7,000 6,000 Government securities Cashi Boston N e w Y o r k . . _. _•_.___._ Pittsburgh.. _ _._ Winston-Salem . . . _ . . Cincinnati _ . . _ ... Indianapolis. Chicago _ . Des Moines . . . . _ _ . __ _ Little Rock __ . T o p e k a _. ._ . . P o r t l a n d . . __ . . . L o s Angeles _ _ $1, 553 1,281 832 109 901 630 1,149 59 186 108 185 $2, 523 4,611 1,599 1,093 1,835 1,235 5.663 1.314 696 950 1, 612 2,335 S e p t e m b e r 1944 ( C o m b i n e d j t o t a l ) . 6,993 25, 466 95, 201 23, 907 156, 976 A u g u s t 1944 4,072 26, 516 113, 674 25,974 132, 691 56, 501 7,502 130, 365 18, 944 138, 601 S e p t e m b e r 1943... 1 ... _ ._ ._ __ . . . Includes interbank deposits. 60 i Capital 2 Debentures Member deposits T o t a l assets * Sept. 30, 1944 2,500 5.000 4,000 5,000 2,000 1,000 1,000 8,500 $1,472 6,100 660 381 3,995 4,228 4,695 1,401 50 860 946 2,157 $23, 386 40, 569 23, 458 18,120 32,155 23,624 31, 533 19,242 14, 533 13,018 10,457 26, 559 205,045 44, 000 26, 945 276, 654 204, 524 44, 000 22, 744 273, 903 198, 559 60, 000 24, 711 288, 483 Capital stock, surplus, and undivided profits. Fee/era/ Home Loan Bank Review Table 1 3 — I N S U R E D A S S O C I A T I O N S — P r o 3 r e s s of institutions insured by the FSLIC ' [Dollar a m o u n t s are s h o w n in t h o u s a n d s ] Operations Private repurchasable capital Government share capital Federal Home Loan Bank advances $70, 852 193, 452 $2, 736, 258 2, 938,310 $185, 783 169,167 $170,066 113,977 276, 785 376,177 186, 954 580,087 302, 556 581,651 3,270,834 3,318,900 3,362,380 3, 389, 891 3, 435, 798 3,488, 270 3, 573,896 119,252 74, 568 69,941 69, 920 69, 720 69,690 69, 693 228, 303 239, 936 256,250 788,854 954,934 997,983 3,710, 356 3, 922, 705 4,092,609 1,849,400 1,853,868 141,617 164,430 41,022 117, 339 2,426,079 2, 408, 687 2, 438,803 2, 523, 737 2, 550,973 2, 580, 481 2,617,431 1,865,991 1,871, 478 1,880,513 1, 896, 312 1,908, 518 1,915,135 1,915, 771 170,730 235, 524 109,181 369, 954 183,038 1,466 1,465 1,464 2, 709, 897 2,881,276 2, 961,860 1,927,122 1, 972,881 2, 024,635 135, 664 148,913 151,862 1942: J u n e ___ December 910 931 1, 255, 307 1,351, 703 978, 556 1,017,773 1943: J u n e July 960 967 967 969 971 975 981 1, 454,920 1,466,582 1,482,049 1, 514,189 1,530,499 1, 546, 731 1, 565,297 1,052,586 1,060,004 1,066,455 1,075,099 1,084,305 1,088,936 1,093,254 986 996 996 1,617, 971 1, 702, 292 1,752,015 1,108,079 1,144, 704 1,177,724 Total assets N e t first mortgages held Cash 2,374 2,398 $3,461,228 3, 651,598 $2,827,956 2,871,641 $219, 374 256, 470 - -- 2,428 2,435 2,433 2,440 2,439 2,442 2,447 3,880,999 3,875,269 3,920,852 4,037,926 4,081,472 4,127,212 4,182, 728 2, 918, 577 2,931, 482 2,946, 968 2,971,411 2, 992,823 3,004,071 3,009,025 __. _ - -- -- -- 2,452 2,461 2,460 4, 327,868 4, 583, 568 4,713,875 3,035,201 3,117,585 3, 202,359 1,464 1,467 2, 205, 921 2, 299,895 1,468 1,468 1,466 1,471 1,468 1,467 1,466 P e r i o d a n d class of association ALL Number of associations Government bond holdings New mortgage loans N e w private investments Private repurchases $58,642 46, 705 $72,788 91,029 $26,152 30,219 35.9 33.2 78,155 80,904 71,013 118,153 114,619 104, 565 100, 340 76,899 77, 994 83,068 87, 878 81,929 72, 936 70, 973 103,939 134,065 94,229 83, 970 87, 692 90,023 118, 496 33,704 97,117 50, 250 60,019 45,104 43,137 37,885 32.4 72.4 53.3 71.5 51.4 47.9 32.0 50,868 50,832 37,721 90,103 118,743 86,840 87,163 105, 245 101, 658 104,494 127, 945 122, 016 56, 693 46, 560 56,102 54.3 36.4 46.0 1, 735, 932 1,882,051 150,776 137, 208 127, 623 84,135 35, 279 27, 381 47, 495 58, 937 14,794 16, 530 31.1 28.0 373, 325 2,060,502 2,087, 404 2,117,053 2,135,010 2,164,155 2, 201,120 2,257,002 96,109 58, 239 55,021 55,021 55,021 55,021 55,021 56, 553 59, 416 51, 639 87, 648 84, 983 76,034 74, 780 46, 730 48, 370 51,172 54,100 50,576 44,804 43, 647 68, 235 87, 444 61,351 53,138 56,490 57, 915 76, 677 19, 586 64,073 31, 253 37, 274 26, 825 24, 373 21, 569 28.7 73.3 50.9 70.1 47.5 42.1 28.1 509,170 620,016 652,085 2, 346,042 2, 488, 785 2, 599, 565 39, 957 39,948 29,562 63,892 84, 602 60,877 53,883 64, 474 63,489 68, 276 83,856 79,126 36,182 25,969 35,570 53.0 31.0 45.0 77, 757 92,040 29,830 76,113 1,000, 326 1,101,259 35,007 31, 959 42,443 29,842 23,363 19, 324 25, 293 32,092 11, 358 13,689 44.9 42.7 106,055 140, 653 77, 773 210,133 119, 518, 208,326 1,210,332 1,231,496 1,245,327 1,254,881 1,271, 643 1,287,150 1, 316,894 23,143 16, 329 14, 920 14,899 14,699 14,669 14,672 21,602 21,488 19,374 30, 505 29, 636 28, 531 25,560 30,169 29, 624' 31,896 33,778 31,353 28,132 27,326 35, 704 46,621 32,878 30,832 31,202 32,108 41,819 14,118 33,044 18,997 22,745 18,279 18, 764 16,316 39.5 70.9 57.8 73.8 58.6 58.4 39.0 92, 639 91,023 104, 388 279, 684 334, 918 345, 898 1, 364, 314 1, 433, 920 1,493,044 10,911 10,884 8,159 26, 211 34,141 25,963 33, 280 40,771 38,169 36, 218 44,089 42,890 20, 511 20,591 20,532 56.6 46.7 47.9 Repur chase ratio INSURED 1942: J u n e __ . December 1943: J u n e July - _._ - September __- . D e c e m b e r __ - -1944: M a r c h _ _ June September - - FEDERAL 1942: J u n e December __ __ 1943: J u n e July September December - 1944: M a r c h June September ; STATE . September December _ 1944: M a r c h June September __. - i T h i s t a b l e is n o w p u b l i s h e d in full o n l y in F e b r u a r y , M a y , A u g u s t , a n d N o v e m b e r . Table 1 4 — S A V I N G S — H e l d by institutions [ T h o u s a n d s of dollars] E n d of period Insured savings a n d loans J 1942: M a r c h June September December $2,612,736 2, 736, 258 2, 834,079 2, 983, 310 1943: M a r c h June _ September December 3,105,080 3, 270,834 3, 389,891 3, 573,896 1944: M a r c h June... September 3, 710, 356 3,922, 705 4,092, 609 Mutual savings banks 2 Insured . commercial banks 3 $10, 354, 533 $14, 889, 560 10, 620,958 15, 704,991 11,104, 707 16,897,124 11, 707, 025 18, 572, 406 12,428,026 20, 543,888 Postal savings4 $1, 305, 427 1, 315, 523 1, 357, 718 1,417,406 1,492,966 1, 577, 526 1, 683, 381 1, 787,879 1,905, 748 2, 034,137 2,196, 330 1 P r i v a t e r e p u r c h a s a b l e capital as r e p o r t e d to t h e F H L B A d m i n i s t r a t i o n . 2 Month's Work. All deposits. 3 F D I C . T h e s e figures h a v e been revised to sbow total t i m e deposits of individuals, p a r t n e r s h i p s a n d corporations. W h i l e it is still safe to a s s u m e t h a t indiv i d u a l savings m a k e u p t b e greater p o r t i o n of t h e m o r e inclusive classification, it is no longer possible t o get a n accurate p i c t u r e of t h e relationship of these t w o items. 4 Balance on deposit to credit of depositors, including u n c l a i m e d accounts. S e p t e m b e r total is u n a u d i t e d . November 1944 Table 15—FORECLOSURES—Estimated nonfarm real-estate foreclosures, by Federal Home Loan Bank Districts Cumulative (9 m o n t h s ) Foreclosures Federal H o m e L o a n B a n k District Jan.Sept. 1944 Jan.Sept. 1943 Percent change Sept. 1944 Aug. 1944 July 1944 Sept. 1943 U N I T E D STATES 1,487 1,255 1,340 2,077 13, 272 20,228 -34.4 Boston New York Pittsburgh Winston-Salem. Cincinnati Indianapolis .._ Chicago Des Moines Little Rock Topeka Portland Los Angeles 138 362 387 138 145 30 66 65 40 72 4 40 119 373 159 131 146 28 71 63 38 47 10 70 1,602 3,650 2,322 1,409 1,172 255 676 731 341 506 89 519 -24.2 -31.8 -32.8 -40.9 -26.6 -39.0 -41.8 -43.7 -49.0 -34.0 -53.6 -36.9 154 386 183 154 152 19 63 88 49 42 229 509 460 192 160 41 115 123 81 82 19 66 2,113 5,349 3,457 2,384 1,596 418 1,161 1,299 669 767 192 61 Expected cost of house according to w e e k l y f a m i l y income of those p l a n n i n g to b u y or b u i l d Demand for Homes (Continued from p. J^O) toward owner occupancy which is found among the smaller communities. Not only is the present proportion of home ownership higher as communities become smaller, b u t the firm demand (those who have no reservations about building) is highest in communities under 25,000, including rural places. Assuming that these households are the best prospects and that the initial demand for homes by potential owners may consist principally of this group, 75 percent of the homes to be built for ownership may be concentrated in places with less than 100,000 population although these areas account for only 67 percent of the Nation's households. In evaluating data on community-size-group comparisons, it is important to remember the relatively low average rental values to be found among residences situated outside of metropolitan areas. According to information made public by the Bureau of the Census, the average rental value of rural nonfarm dwellings inside metropolitan districts was $29.61 in 1940 as against an average of $15.14 for such homes outside these areas. Intentions to buy or build were highest in the South and West. I n the former region the present proportion of ownership is somewhat lower than the national average, while in the latter it is higher than in the other regions. However, in both the South and West there has been a sharp increase in income payments during the war. " Family composition presents an understandable paradox. Those with young children show a disproportionate interest in obtaining a house; 15 percent of these with a child under 2 hope to buy or build, as compared with the general average of 10 percent. B u f because these are young couples, N u m b e r of houses p e o p l e p l a n t o b u y or b u i l d : b y size of p l a c e of residence Estimate based o n those who would b u y or b u i l d Residence N a t i o n a l total City: 100,000 a n d over 25,000-100,000 2,500-25,000 _ Rural: Non-farm Farm -_._ . _ _,.._ _ Estimate based on those without reservations 3, 700,000 800,000 1,100,000 490,000 810,000 200, 000 80,000 200,000 760,000 540,000 170,000 150,000 Total reporting both income and cost * Under $20 $20 t o $40 $40 t o $60 $60 t o $80 $80 t o $100 Total reporting 275 9 42 86 70 26 42 Less t h a n $2,000 $2,000-$3,999 . . $4,000-$5,999 $6,000-$7,999 $8,000-$9,999 $10,000 a n d over 51 71 84 44 13 12 5 0 1 1 1 1 17 15 10 0 0 0 17 28 26 12 1 2 8 17 24 16 5 0 2 6 10 5 2 1 2 5 13 10 4 g E x p e c t e d cost of h o u s e M e d i a n cost . $4, 400 (2) $100 and over $2, 500 $3,900 $4,800 $5,000 $6, 200 i Omitting farmers (54 cases), those who failed to report income (50 cases), and those who, reporting income, failed to report the expected cost of the house (62 cases). 2 Less than $1,000. whose futures are somewhat uncertain, they have an undue proportion ol reservations about carrying out their plans. " Resident and migrant status are also related paradoxically to house purchasing plans. While newcomers are, on the whole, poorer prospects than those who have been in the community 3 to 9 years, among the newcomers it is those who plan to leave [and build elsewhere] that are the best prospects." Thus it is the households which have roots in other localities to which they plan to return that are the more definite in their ideas of buying. Distribution by Cost The median cost of the nonfarm homes which these prospective owners plan to build or buy was placed at $4,400, according to the survey. That these cost data are not based upon wild guesses is indicated by the fact that only 13 percent of those reporting both income and anticipated cost plan to build a house the cost of which is over 100 times their weekly incomes. Also, these estimates bore a reasonable relationship as a whole to the present level of rents paid by these families. The greatest demand, as shown by about 30 percent of the nonfarm replies, was within a cost range of from $4,000 to $6,000, while almost 26 percent indicated a willingness to pay from $2,000 to $4,000. The less-than-$2,000 bracket ranked third with about 9 percent of those planning to secure new nonfarm homes; and 6 percent were within the $6,000 to $8,000 range. The bulk of those families reporting intentions to buy or build indicated market values not too different from those of the accommodations which they now occupy. Federal Home Loan Bank Review Amendments Jo Rules and Regulations FHLBA Bulletin No. 37 AMENDMENT TO RULES AND REGULATIONS FOR THE FEDERAL SAVINGS AND LOAN SYSTEM RELATING TO THE AUTHORIZATION OF ADDITIONAL LENDING POWERS NECESSARY FOR THE PARTICIPATION OF CHARTER K ASSOCIATIONS IN MORTGAGE LENDING UNDER THE SERVICEMEN'S READJUSTMENT ACT. (Approved and effective October 19, 1944.) A new section, 203.21, has been added to the Rules and Regulations for the Federal Savings and Loan System by the Federal Home Loan Bank Administration to cover mortgage lending under the terms of Title I I I of the Servicemen's Readjustment Act of 1944. This section provides a mechanism for any Charter K association to make loans which have been guaranteed by the Administrator of Veterans' Affairs under the new " G . I. Bill of R i g h t s / ' provided the association has amended its charter by the adoption of Section 14.1. (The provisions and procedures for the adoption of Section 14.1 as an amendment to Charter K were published in the December issue of the R E V I E W , page 62.) The newly adopted section follows: "203.21. Additional lending powers The acknowledgment by the Federal Home Loan Bank Administration of the receipt of an application filed by the directors of a Federal association operating under Charter K, made pursuant to section 14.1 thereof, to use the following additional lending powers shall constitute the approval under such section 14.1 of such application; provided that all loans made pursuant to this section shall comply with the requirements of section 5 (c) of Home Owners' Loan Act of 1933, as now or hereafter amended: "(1) The increase of the present authorized percentage of lending to appraised value of the underlying improved real estate security of the applicant Federal association to the extent of the guarantee by the Administrator of Veterans' Affairs under Title III of the Servicemen's Readjustment Act of 1944, and any amendments thereto, and the loan plans, practices and procedures now or hereafter provided by the Administrator of Veterans' Affairs thereunder." This action, being of an emergency character, became effective upon adoption and filing wdth the Federal Register, October 19, 1944. FHLBA Bulletin No. 39 AMENDMENT TO RULES AND REGULATIONS FOR THE FEDERAL SAVINGS AND LOAN SYSTEM RELATING TO THE AUTHORIZATION OF AN ALTERNATE MECHANISM FOR AUGMENTING PRESENT LENDING POWERS OF FEDERAL ASSOCIATIONS TO PERMIT PARTICIPATION IN MORTGAGE LENDING UNDER THE SERVICEMEN'S READJUSTMENT ACT. (Approved and effective November 13, 1944.) Section 203.10 of the Rules and Regulations for the Federal Savings and Loan System has been amended to provide another method, as an alternative to that set forth in Bulletin 37 (above), for authorization to increase the lending powers of Federal associations. The amendment accomplished under Bulletin 39, while considerably less inclusive than Section 203.21, provides a means for participation of Federals in "G. I." mortgage lending. The changes, which appear below, have been made in the following manner: 1. By inserting the following sentence immediately after the second sentence of paragraph (b): "When the members of a Federal association, at a legal meeting, have so authorized, such Federal association may increase its existing authorized percentages of lending to appraised value of the underlying improved real estate security to the extent of the guarantee by the Administrator of Veterans' Affairs under Title III of the Servicemen's Readjustment Act of 1944, and any amendments thereto, upon loans guaranteed thereunder: Provided, That any loans made pursuant to this authorization shall comply with the provisions of Section 5 (c) of Home Owners' Loan Act of 1933, as amended." 2. By inserting the following sentence immediately preceding the next to the last sentence of paragraph (d): "The loan plans, practices and procedures now or hereafter provided by the Administrator of Veterans' Affairs pursuant to the provisions of Title III of the Servicemen's Readjustment Act of 1944, and any amendments thereto, are hereby approved for use by any Federal association having a Charter K in making loans guaranteed under such Act, from the date receipt of an application from such Federal association for the use of such loan plans, practices and procedures is acknowledged." This action, being of an emergency character, became effective upon adoption and filing with the Federal Register on November 13, 1944. Cooperatives in Reconstruction • COOPERATIVE associations may be called upon to play an extremely important part in many phases of reconstruction in post-war Europe, according to a study published in a recent issue of the Monthly Labor Review. The cooperative movement, which has been much more successful abroad than in the United States, showed a considerable recovery from depression lows, there being nearly 575,000 associations with a membership of more than 111,500,000 just before the war. Recent reports of plans for assistance from the United States give added credence to the belief that European cooperatives will be in a position to participate in rehabilitation as the progress of the war reopens avenues to more peaceful commercial relations. In order to aid in the reconstruction of Europe, the International Cooperative Reconstruction, an American committee of the International Cooperative Alliance (which claims a membership of 100,000,000) is shipping supplies to cooperatives abroad. American cooperatives are raising a freedom fund to be administered through the International Cooperative Alliance. The fund, which will amount to $2,000,000, will be used to restore cooperative facilities, build up inventories, train personnel and in general, to aid in relief and reconstruction. In the field of housing, in particular, the European organizations are expected to be a prime factor in the rebuilding of the war-torn areas. November 1944 63 V. f. CeVIBHHINT PftUfTINC OFFICII 1044 FEDERAL HOME LOAN BANK DISTRICTS VQ0> M H B BOUNDARIES OF FEDERAL HOME LOAN BANK DISTRICTS. $ FEDERAL HOME LOAN BANK CITIES. OFFICERS OF FEDERAL HOME LOAN BANKS BOSTON B. J. ROTHWELL, Chairman; E. H. WEEKS, Vice Chairman; W. H. NEAVEs/President; H. N. FAULKNER, Vice President; L. E. DONOVAN, Secretary-Treasurer; P . A. HENDRICK, Counsel; BEATRICE E. HOLLAND, Assistant Secretary. CHICAGO C. E. BROUGHTON, Chairman; H. G. ZANDER, JR., Vice Chairman; A. R. GARDNER, President; J. P. DOMEIER, Vice President; LAURETTA QUAM, Assistant Treasurer; CONSTANCE M. WRIGHT, Secretary; GERARD M. UNGARO, Counsel. DES 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. MOINES E. J. RUSSELL, Chairman; E. A. PURDY, Vice Chairman; R. J. RICHARD- SON, President-Secretary; W. H. LOHMAN, Vice President-Treasurer; J. M. MARTIN, Assistant Secretary; A. E. MUELLER, Assistant Treasurer; EMMERT, JAMES, NEEDHAM & LINDGREN, Counsel. PITTSBURGH LITTLE ROCK E. T. TRIGG, Chairman; C. S. TIPPETTS, Vice Chairman; R. H. RICHARDS* B. H. WOOTEN, Chairman; W. P . GULLEY, Vice Chairman; H. D . President; G. R. PARKER, Vice President; H. H. GARBER, SecretaryTreasurer; WILLIAM S. BENDER, Counsel. WALLACE, President; J. C. CONWAY, Vice President; R. T. PRYOR, Secretary; W. F. TARVIN, Treasurer. TOPEKA W IN STON -SALEM P. F. GOOD, Chairman; A. G. HARTRONFT, Vice Chairman; C A. STER- H. S. HATVORTH, Chairman; E. C. BALTZ, Vice Chairman; O. K. LA ROQUE, President-Secretary; Jos. W. HOLT, Vice President-Treasurer* CINCINNATI HARRY S. KISSELL, Chairman; WM. MEGRUE BROCK, Vice Chairman; WALTER D . SHULTZ, President; W. E. JULIUS, Vice President-Secretary; A. L. MADDOX, Treasurer; TAFT, STETTINIUS & HOLLISTER, General Counsel. INDIANAPOLIS LING, President-Secretary; R. H. BURTON, Vice President-Treasurer; JOHN S. DEAN, General Counsel. PORTLAND BEN A. PERHAM, Chairman; H. R. GRANT, Vice Chairman; F. H. JOHNSON, President-Secretary; IRVING BOGARDUS, Vice President. Treasurer; Mrs. E. M. JENNESS, Assistant Secretary; VERNE DUSENBERY, Counsel. Los ANGELES H. B. WELLS, Chairman; F. S. CANNON, Vice Chairman-Vice President; D. G. DAVIS, Chairman; C. A. CARDEN, Vice Chairman; M. M. HURFORD, FRED. T. GREENE, President-Secretary; G. E. OHMART, Vice PresidentTreasurer; HAMMOND, BUSCHMANN, ROLL & ALEXANDER, Counsel. President; C. E. BERRY, Vice President; F. C. NOON. SecretaryTreasurer; HELEN FREDERICKS, Attorney. SUBSCRIPTION P R I C E OF R E V I E W . The REVIEW is the Federal Home Loan Bank Administration's medium of communication with member institution of the Federal Home Loan Bank System and is the only official organ or periodical publication of the Administration. 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 jof 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 rom Superintendent of Documents, Government Printing Office, Washington 25, D . C. APPROVED BY T H E BUREAU OF T H E B U D G E T .
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