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FEDERAL
HOME
LOAN
BANK
Vol. 13, No. I
Washington, D. C
OCTOBER 1946
IN THIS ISSUE
Semi-annual Report of Membership Progress
HOLC Heads for the Black
Gl Joe's Housing Plans
The Increased Production of Building Materials
The Mortgage Investment Portfolio of Life Insurance Companies
Th,
REYIEW-
Brief
Semi-annual report of membership progress
Assets of all F H L B members totaled more than $9,443,000,000 at
the end of June, and there is little doubt t h a t the $10-billion milestone
will be passed before t h e end of the year. In t h e past 2. years, members' assets have increased 38 percent. The membership consisted of
3,660 savings and loan associations, 25 m u t u a l savings banks, and 14
life insurance companies.
Member savings and loan associations, with total resources of
$8,359,000,000, now account for almost 90 percent of the total assets
of all institutions of this type. [Page 3.\
H O L C heads for the black
Contrary to early estimates of large losses, it is now clear t h a t in
the long run H O L C will return all of its original capital investment.
I t is now 80 percent liquidated a n d losses h a v e been nine-tenths offset
by earnings. The recent "scarcity m a r k e t " in real estate has not been
a controlling factor, the record shows.
Only 430,000 original loans remained on last J u n e 30, nearly all on
a current-payment basis. All b u t 200 previously acquired properties
had been sold by t h a t date. [Page 4-]
Gl Joe's housing plans
More t h a n 2 million veterans w a n t to rent other quarters or to buy
or build new houses during t h e next 12 months. This n u m b e r would
be almost doubled if suitable houses were available at prices t h e y
desire. This and other up-to-date information about veterans'
housing plans was revealed in a nationwide sample survey made in
J u n e b y the Census Bureau.
Ownership was a more popular choice t h a n renting and a majority
of prospective purchasers h a d already taken some definite steps.
Specific price limitations, realistic in t e r m s of their incomes, were
expressed b y b o t h buyers and renters. The majority held to a sales
price under $6,000, while $50 was t h e top for most rents. [Page 9]
The increased production of building materials
Reports on production of building materials during July a n d August
show significant gains in the o u t p u t of practically all critical items.
L u m b e r production was above three billion board feet for the third
m o n t h in a row. Cast iron soil pipe o u t p u t in August set a postwar
high, up 20 percent over July. Brick production was t h e highest since
October 1941. T h e a m o u n t of gypsum board and lath produced set a
new record for t h e industry. Substantial increases were also shown
in nails, plumbing fixtures, radiation, warm-air furnaces and struct u r a l clay tile. [Page 13.]
Mortgage portfolio of life insurance companies
Although new mortgages estimated at over $1 billion were acquired
by life insurance companies last year, the high rate of repayments
brought the total portfolio down to $6,514,000,000 at the end of the
year. T h e greatest decline was in loans on small-home properties
which more t h a n offset a slight increase in those secured by multifamily dwellings. The ratio of these holdings to a d m i t t e d assets
dropped to 15 percent, with small-home securities representing only
5 percent of assets. [Page 15.}
August highlights
That billion-dollar month in real
estate financing was almost a reality
as the total volume of mortgages under $20,000 reached an estimated
$999,221,000. The savings and loan
share of the total dropped for the
fifth successive month, while the
increase in bank and t r u s t company
share was their seventh in a row.
Savings and loan lending totals
varied less than 1 percent from the
July figures, down to $324 million.
Declines in loans for new construction and home purchase were only
partially offset by gains in the other
loan categories.
The net inflow of funds into savings
and loan associations dropped below
the comparable 1945 m o n t h for t h e
second time this year. Although
their share capital accounts increased
$78 million during t h e m o n t h , this
was 8 percent lower t h a n in July,
contrary to t h e normal seasonal
trend.
Substantial gains in the production
of critical building materials offered
the best hope for increasing the
level of construction. N H A estimated t h a t 708,000 units have been
p u t under construction since t h e
beginning of t h e year, with 350,000
completions. These totals include
trailers, prefabs, conversions a n d
re-use war housing, as well as conventional construction.
Building
permits for privately financed construction of new homes were slightly
higher t h a n in July. By projecting
the 8-month totals on an annual
basis, it appears that 1946 will be
the best building year since 1927.
mo
VEHP PROGRESS
TOO I- Cumulative tota4s
Units started
€00
[jj
Units completed - |
$00
400
100
200
»00
prnuii
•APR* JJWnF
*^"|*
w «
FEDERAL HOME LOAN BANK
mi
Contents
Page
m
No. 1
OCTOBER 1946
The Federal Home Loan Bank Review
is published monthly by the Federal
Home Loan Bank Administration under
the direction of a staff editorial committee. This committee is responsible
for interpretations, opinions, summaries,
and other text, except that which appears in the form of official statements
and signed articles.
Communications concerning material
which has been printed or which is desired for publication should be sent to
the Editor of the Review, Federal Home
Loan Bank BuiTaTng, Washington 25,
D. C.
The Federal Home Loan Bank Administration assumes no responsibility for
material obtained from sources other
than itself or other instrumentalities of
the Federal Government.
N A T I O N A L HOUSING AGENCY
Wilson W. Wyatt,
Administrator
FEDERAL HOME LOAN BANK
ADMINISTRATION
John H. Fa hey, Commissioner
2
S E M I - A N N U A L REPORT OF MEMBERSHIP PROGRESS..
3
H O L C HEADS FOR THE BLACK
4
GlfJOE'S HOUSING! PLANS
9
THEIINICREASED P R O D U C T I O N
MATERIALS
OF
BUILDING
THE M O R T G A G E INVESTMENT PORTFOLIO OF LIFE
INSURANCE COMPANIES
13
15
STATISTICAL D A T A
New family dwelling units
Building costs
Savings and loan lending
Mortgage recordings
Gl lending
F H A activity
Federal Home Loan Banks
Insured savings and loan associations
Share investments and repurchases
26-27
27-28
28-29
29-30
30
30
30
31
31
SPECIAL FEATURES
News notes
Worth repeating
Advisory Council
Amendments to rules and regulations
Monthly survey
Directory changes of member, Federal and insured institutions
Reference list of VEHP regulations
8
12
14
18
21
25
32
Contents of this publication are not copyrighted
SUBSCRIPTION PRICE OF REVIEW.—A copy of the REVIEW is sent to each member and insured institution without charge. To others the annual subscription price,
which covers the cost of paper and printing, is $1. Single copies will be sold at 10
cents. Outside of the United States, Canada, Mexico, and the insular possessions, subscription price is $1.60 ; single copies, 15 cents. Subscriptions and orders for individual copies should be sent with remittances to the Superintendent of Documents,
Government Printing Office, Washington 25, D. C.
APPROVED BY T H E BUREAU OF T H E BUDGET
Federal Home Loan Bank Review
SEMI-ANNUAL REPORT OF MEMBERSHIP
PROGRESS
Total assets of all FHLB System members passed the $9-billion
mark during the first half of this year. Savings and loan members
now account for almost 90 percent of the assets of all operating
institutions of this type.
•
ASSETS of all members of the Federal Home
During the six months' period, the number of
Loan Bank System totaled more than
mutual savings banks and insurance companies
$9,443,000,000 on June 30, 1946, and there seems
was unchanged. There was a net increase of 2
little doubt that the $10-billion milestone will be
savings and loan associations as a result of 18
passed before the end of this year. The gain of
new memberships and 16 terminations, mostly for
$802,000,000 in total resources during the first six
liquidations or consolidations with other Bank
months of this year exceeded the annual gain in
System members.
assets in all previous years with the exception of
On June 30, Ohio continued to lead all other
1933—the first full year of operations—and 1944
states in both the total number and size of member
and 1945.
thrift institutions of the Bank System, with 451
Percentagewise, total assets at the end of June
affiliated savings and loan associations holding
were 18 percent ahead of the comparable 1945
more than $1,331,000,000 of assets. Massachudate and in the past two years had increased 38
setts was second, having 132 member institutions
percent.
with combined assets of $833,000,000.
The membership consisted of 3,660 savings and
States with member home financing instituloan associations, 25 mutual savings banks, and
tions holding $500,000,000 to $700,000,000 of
14 insurance companies, for a total of 3,699.
resources included California, Illinois, New York
and Pennsylvania. Members in New Jersey,
FEDERAL HOME LOAN BANK SYSTEM
Texas and Indiana reported combined assets
TOTAL ASSETS OF ALL MEMBERS
ranging from $300,000,000 to $400,000,000. I n
iHj
As of June 3 0 1933 - 1946
the $200,000,000 to $300,000,000 group were
$10 r
Connecticut, North Carolina, Florida, Michigan,
Washington State and the District of Columbia.
B
0ns
1940
October 1946
1945
Savings and loan totals
Assets of savings and loan members of the Bank
System reached $8,359,000,000 by the end of
June—an increase of almost $700,000,000 in six
months. The gain was $45,000,000 more than
during the previous half-year, and almost
$100,000,000 more than in the same 1945 period.
With only a small fluctuation in the number of
savings and loan members, their assets have gained
19 percent in the past year, and 40 percent since
June 1944.
Member savings and loan associations now
account for 89 percent of the total resources of all
institutions of this type throughout the country.
Membership in the Little Rock Bank District
now includes over 98 percent of all operatings savings and loan associations in that area. The
proportion has passed 97 percent in two other
Bank Districts: Indianapolis and San Francisco
3
HOLC HEADS FOR THE BLACK
In today's real estate and mortgage market the conditions which
existed in the country when the H O L C was established are easily
forgotten. And yet, from its experience much can be learned to
prevent a recurrence of the 1933 catastrophe. It is worthwhile
examine how the program has worked out.
•
W H E N the Home Owners' Loan Corporation
was created to cope with the crisis in real
estate and mortgage finance growing out of the
country's worst depression, it was a rather common assumption that the taxpayers footing the
bill would eventually find themselves "in the
red" to the extent of half a billion to a billion
dollars. At that time, though, there was little
choice but to take drastic action. Foreclosures
and evictions were running at the rate of 1,000 a
day in urban areas, while in the country, nearriots were developing as sheriffs attempted to conduct auction sales of defaulted farm properties.
The situation was explosive and only the resources of the Federal Government could stem the
tide of deflation.
In this atmosphere the HOLC was set up by
the practically unanimous vote of the Congress.
I t was empowered to refinance urban home
mortgages, thereby protecting distressed home
owners from impending foreclosures, and with
the parallel aim of stabilizing the real estate
market, restoring shrunken values and preventing further impairment of mortgage lending institutions.
Lending operations
During the lending phase of its operations, the
HOLC granted over a million loans, refinancing
more than one out of five of the owner-occupied
mortgaged homes in all nonfarm areas. The test
of eligibility was that the borrower be in genuine
distress and unable to obtain the necessary refinancing of his mortgage elsewhere. When refunded by the Corporation these loans averaged
nearly two years in default in principal and interest and three years of tax delinquency.
These refinancing operations of the HOLC
included, besides the mortgages taken over from
individual lenders, the disbursement of more than
$2 billion in exchange for frozen assets of banks,
savings and loan associations, insurance, finance
and mortgage companies. T h e c o n s e q u e n t
4
strengthening of these institutions enabled them,
in turn, to grant extensions to many of their own
distressed debtors, which relieved the pressure of
foreclosures. The total collapse of real estate
and mortgage values was halted.
Tax payments—advanced to borrowers and
paid to communities for previously delinquent
accounts—represented another HOLC contribution to economic stabilization in community
finances.
The Corporation repaired or reconditioned over
500,000 of the homes of its borrowers to make
them more habitable and better security for its
loans. Payment of delinquent fire insurance
premiums and absorption of loan-making costs
rounded out the bulk of HOLC's operating
expenditures.
Thus, at the end of three years of lending operations, the Corporation had more than a million
loans on its books—all of them technically bad
mortgages and potential foreclosures—representing an over-all loan investment of approximately
$3,100,000,000. From that time on, the organization was faced with a double-barreled problem.
As an emergency relief agency it was, on the one
hand, expected to deal generously with its borrowers. On the other hand, it was charged with the
responsibility of safeguarding as far as possible
the huge investments of taxpayers' funds in its
charge. In its dealings, it could be neither a
"Shylock nor a sucker."
A look at the record
The last original loan was closed in June 1936—
and now, after 10 years of liquidation, what does
the record show?
According to the fiscal report of June 30, 1946,
the HOLC was then almost 80 percent liquidated, with its $3.5 billion cumulative investment
reduced to $736 million. The total number of
loan payments in full had reduced the original
borrowers' accounts to only 430,000. By the end
of last June, over 98 percent of the remaining
Federal Home Loan Bank Review
borrowers were current in their payments, or less
than 3 months in arrears. More than two-thirds
of these debtors had reduced the outstanding
balance on their loans below $2,000 and over twofifths of them had paid down to less than $1,000.
Although losses after sales have totaled $338
million, about nine-tenths of the amount has now
been offset by interest earnings on loans and by
rental and other income. With current real estate losses near the vanishing point and operating
expenses reduced to a new low point, during the
fiscal year 1946 the Corporation earned a net
profit of $24 million. At the peak of operations
HOLC had 21,000 employees and this number is
now down to about 1,100.
In a recent statement, Commissioner Fahey
said: " Op era ting trends emphasize the assurance
that the HOLC will be entirely out of the red
when this venture in lending by a government to
its citizens is completed. Instead of suffering the
expected large losses on its loans to save distressed
home owners and to bail out banks and other
financial groups in the depression years, at final
liquidation HOLC will be able to return its original capital [$200,000,000] to the U. S. Treasury
intact."
Raiding of H O L C portfolio
One reason that the net earnings of the HOLC
have been some time in showing up is the attempt
that was made to raid the organization's loan
portfolio. As the Corporation's loans became
more seasoned and income-producing, several
plans for the acquisition of the better mortages
were advanced by a minority of interested financial
institutions. The object of these pressure groups
was to acquire the good loans, on which millions
had been spent by the Government to make them
safe, leaving the HOLC with only its slow, less
desirable mortgages which were expensive to collect and service. This would, obviously, have
meant the absorption of huge losses by the Government in carrying or marking them down as
"bargain sales." These proposals did not represent
the majority of mortgage lending officials and were
strongly opposed by many of them as well as by
the F H L B Administration. Congress wisely decided, after considering various plans, to permit
the Corporation to follow the original liquidation
program.
However, many HOLC borrowers, misled by the
October 1946
publicity given to these campaigns and influenced
by the solicitations of mortgagees, erroneously
believed that the Corporation was to be summarily closed out. The loss of interest income from
-these refinanced loans totaled many millions of
dollars.
Acquired properties
In spite of provisions in the Act which permitted
a policy of extreme leniency as long as the good
faith of the borrower was demonstrated, the HOLC
has been obliged to foreclose on about 198,000, or
W a l l a c e Named Deputy
Governor of the Bank System
•
T H E appointment of Frederick Earl
Wallace as Deputy Governor of the
Federal Home Loan Bank System has been
announced by Governor Harold Lee. The
new Deputy Governor began his duties in
Washington on October 15.
In his new post Mr. Wallace will direct the
supervisory and examination functions of the
Federal Home Loan Bank System in connection with the 1,473 Federal savings and loan
associations now in operation and the 1,018
state chartered associations whose investors'
accounts are insured through the Federal
Savings and Loan Insurance Corporation.
In 1944, Mr. Wallace accepted appoint- [
ment as State Commissioner of Banks in
Massachusetts. As Commissioner of Banks, f
he exercised supervision over such home
financing institutions as cooperative banks
and savings and loan associations, as well as
commercial and savings banks.
He began his career as a banking and home
financing executive by service with financial
institutions in Boston, including the First
National Bank and for a year represented
that institution in Buenos Aires. During
the early twenties, Mr. Wallace successively
served as chief bank examiner and special
assistant to the Massachusetts Commissioner
of Banks. Later he became vice president
of the Webster and Atlas National Bank of
t Boston. Mr. Wallace is a resident of Wakefield, Massachusetts.
5
19 percent, of its loans. These acquisitions, which
occurred chiefly during the fiscal years 1937-1940,
were necessary to protect the Government's investment. After reconditioning, these acquired houses
have been sold until, as of June 30, only about 200
remained. Meanwhile, rentals from properties in
possession were earning some profit for the Corporation. I t has been the Corporation policy not
to " d u m p " houses at unjustifiable losses, but to
sell as fast as local markets could absorb them at
fair prices.
Contrary to some opinion, HOLC's profit-andloss picture was little affected by the inflation in
real estate values resulting from the war. Refer-
ence to the small chart will show that, as far as the
disposition of acquired properties is concerned, the
bulk of sales were made prior to December 1941,
with these sales heaviest from 1939 to 1941.
Thus, the "scarcity market" in real estate which
developed subsequent to Pearl Harbor has not
been a controlling factor. The rise of real estate
prices in most of the country did not result in a
higher percent of capital value recaptured for
HOLC as compared with sales prior to 1941.
By that time, approximately 80 percent of the
acquisitions had been disposed of at prices averaging 94 percent of the original loans and 74 percent
of capital value (including loan balances, unpaid
A MILLION HOLC MORTGAGES
Their history and present distribution of oceotint* as of June 3 0 , 1946
CLOSED
ACCOUNTS
ORIGINAL
MORTGAGE LOANS
OPEN
ACCOUNTS
1,017,821
PAID LOANS
ORIGINAL LOANS
OUTSTANDING
499,747
323,851
LOANS FORECLOSED
Houses acquired
by HOLC
198,196
HOUSES NOW 1
OWNED BY
1
HOLC
209
HOUSES SOLD
ON
TERMS
180,418
PURCHASERS
ACCOUNTS
OUTSTANDING
106,456
TOTAL
588,894*
TOT*k
* Gharge~off$$ cmsotld&tiims, w~$oles, etc. me not mcfudedt
hence totals. will not add to total original mortgage loans.
6
Federal Home Loan Bank Review
interest and taxes, as well as the costs of reconditioning and foreclosing.) Excluding New York,
New Jersey and New England, in which the real
estate and mortgage structure had been hardest
hit and slowest to recover even during the war,
sales averaged almost 100 percent of original loans
and 79 percent of capitalized value. During the
war, most of the sales of acquired properties were
in those northeastern areas and, while a reviving
real estate market there commencing in 1943
permitted an increased volume of sales, the
losses ranged from 5 to 7 percent above the averages for the rest of the country before 1941.
With respect to collections since the beginning
of the war, it is true that high employment and
wage levels permitted prompt payment, and even
substantial prepayment. However, these curtailments, while benefiting the borrowers, reduced the
Corporation's interest income.
Lessons in mortgage finance
As this program swings into the home stretch,
what conclusions can be drawn from this—the
most extensive single mortgage lending operation
in the country's history? Two things seem most
apparent. First, the small home owner if given
every reasonable consideration when in temporary
difficulties is an excellent risk. Perhaps the most
significant thing about the HOLC has been that,
through Congressional foresight in drawing up the
legislation, this agency has had the authority to
make extensions on payments when people were in
trouble and the case justified it. The "small
people" who were for so long alleged to be "no
good" were given a chance, and they paid out.
Instead of taking advantage of the special benefits received, they have showed that their good
faith matched that of their creditor.
There are far-reaching implications to the proof
that this operation has provided that the exercise
of patience is good business. I t has discredited
the old-time practice of simply "cracking down"
on borrowers whose income has been cut off
temporarily and who are, for the time being, unable
to meet their obligations. T h a t has been shown
to be the stuff of which panics are made. The
willingness and ability of the average American
family to carry through to eventual home ownership when provided with a reasonable chance has
been proven beyond doubt.
The second important feature of HOLC is that
October 1946
the plan which was devised has helped greatly t o
lead and influence a complete reform of the mortgage lending set-up in this country. The Corporation was a pioneer in using the longer-term,
amortized loan at low interest which has practically
driven from the field the risky old-style, short-term
loan at higher original rates, plus its expensive
junior lien features.
In summing up, it can be said that the HOLC
set a new pattern in the theory and the practice
of mortgage financing. I t has demonstrated
conclusively, on the one hand, that with reasonable
and proper encouragement, ultimate debt-free
home ownership is possible for the great majority
of families who undertake the venture. I t has
also, on the other hand, pointed the way in new
techniques of lending and collection policies that
make such a venture a worthwhile proposition for
owner and lender alike.
First Guaranteed M a r k e t Contracts
•
P R E L I M I N A R Y negotiations on the first two
contracts under the guaranteed market provisions of the Veterans Emergency Housing Act
were completed early this month. The Housing
Expediter's Office issued directives to the Reconstruction Finance Corporation to enter into
guaranteed market contracts with the Homeola
Corporation of Chicago, 111., and the William H.
Harman Corporation, of Philadelphia, Pa.
The directives provide for greatly expanded
production by both manufacturers. They call
for 29,400 houses by the end of next year.
7
iiwifo
A n o t h e r , different
F H A created
T h e F a r m e r s H o m e Administration, scheduled to begin work on
N o v e m b e r 1, will operate, as the
n a m e implies, in a field not covered
by t h e Federal Housing Administration. T h r o u g h common usage, the
new agency will probably acquire a
different title to distinguish it from
t h e present F H A .
Set up within the D e p a r t m e n t of
Agriculture, the F a r m e r s H o m e Administration will take over the functions of t h e F a r m Security Administration a n d the Emergency Crop and
Feed Loan Division of the F a r m
Credit Administration. T h e new
agency is authorized to m a k e direct
farm production and subsistence
loans a n d to m a k e or insure farm
ownership loans on family-type farms.
Construction employment
double V J D a y total
Well over twice as m a n y workers
were employed at construction jobs
in August 1946 as on VJ Day, one
year earlier, according to t h e Bureau
of Labor Statistics. A million and a
quarter more construction workers
were employed in t h e 12 m o n t h s immediately after t h e war, bringing
August
1946
employment
to
2,317,000.
T h e most rapid expansion occurred
in employment on home building,
which was four times greater this
August t h a n last year,
having
j u m p e d from 206,000 to 828,000.
Veteran occupancy of
V E H P conversions
Veterans now occupy a high prop o r t i o n of houses a n d a p a r t m e n t s
converted under t h e V E H P , according to the N H A . Six of sixteen
cities surveyed by the B L S for N H A
showed a greater t h a n 90-percent
veteran occupancy for this t y p e of
dwelling.
Occupancy by veterans of V E H P
conversions ranged from 83.3 percent
8
F H A insurance for
factory-built homes
in St. Louis to 94.7 percent in Portland, Oregon. Built with priority
materials, these new self-contained
living units created in existing
structures must be held 30 days, like
all other rental units, for rent to
veterans.
Between M a r c h 1 and September 1,
1946, approximately 85 models of
factory-built houses a n d p a r t s of
houses have been declared eligible
for F H A mortgage insurance, it was
announced recently. T h e n u m b e r
of manufacturers seeking this a p proval has increased substantially
since the V E H P started, although
F H A has insured mortgages on
factory-built homes since 1938.
This a p p r o v a l applies only to t h e
methods and materials used in t h e
manufacture of t h e dwellings. E a c h
application for F H A mortgage insurance on either factory-built or
conventional construction m u s t be
considered individually. Where possible, factory-built frames are given
t h e usual F H A inspection during
fabrication a n d assembly.
Otherwise t h e m a n u f a c t u r e r m u s t certify
t h a t each house has been built a n d
erected in compliance with original
F H A - a p p r o v e d specifications.
Export control on housing
items extended
Between August 20 and September 20, more t h a n 50 items of building materials and equipment vital
to the V E H P were added to t h e 100
items already under export control,
the Housing Expediter announced.
T h e actions were based on N H A
a n d CPA recommendations to the
Office of I n t e r n a t i o n a l T r a d e , Dep a r t m e n t of Commerce, which handles export controls.
Some imports are just as i m p o r t a n t
as the export of critical housing materials, Mr. W y a t t said. T h u s far
in 1946, for example, imports of
housing lumbex have been three times
greater t h a n exports.
PROGRESS O F THE V E H P A U G U S T 3 1 , 1 9 4 6
708,100 units started account for 59 percent of 1946 goal of 1,200,000
Units
started
Program component
Total
1
New p e r m a n e n t
____
2
_
Conventional
Factorv-built
T e m p o r a r y re-use
Conversions
Trailers 6
_ _
..
3
Units
completed
708, 100
350, 000
464, 600
236, 400
443, 500
21, 100
4
5
_ _
-
160, 200
61, 200
22, 100
34, 100
57, 400
22, 100
1
2
August data preliminary.
Includes factory-built units; breakdown of conventional and factory-built completions not
available.
3
Adjusted to Texclude factory-built units; includes approximately 6,500 permanent units
financed
by New
New York State.
4
Factory shipments.
5
Family equivalent units financed by Federal and non-Federal funds. Total accommodations started amount to 187,800 units, comprising 132,600 family and 55,200 dormitory units.
Total accommodations completed amount to 38,300 units, comprising 29,900 family and 8,400
dormitory
units.
6
Factory shipments.
Federal Home Loan Bank Review
Gl JOE'S HOUSING PLANS
N e w light on the housing needs and present living arrangements of
veterans is found in the results of a recent survey conducted by the
Census Bureau for N H A .
Their plans to buy or build new homes
or to rent other quarters in the months ahead are of special
interest to mortgage financing institutions.
H
ABOUT one out of every three of the almost
12,000,000 veterans of World War II want to
rent other quarters or to buy or build new homes
within the next year—if suitable housing is available at the prices, size and quality they desire.
And if anyone needs statistical proof to back up
the extent of the present demand, it was found
that over two million veterans want new quarters
even at present prices.
These figures are from a nationwide Census
Bureau sample survey made during June at the
request of the National Housing Agency. 1 I t
provides important up-to-date information on
(1) the present living arrangements of veterans;
(2) the quality of their present housing; (3) their
needs and future plans; (4) how much veterans
who are seeking housing are able to pay; as well
as other pertinent data about their general characteristics.
Veterans' housing plans
Almost two and one-quarter million veterans
were planning to move and rent, buy or build
within the next 12 months even if only able to
obtain houses of present price, size and quality.
Among those who are in the active housing market, slightly more than half were interested in
owning rather than renting. An estimated 1,170,000 were planning to buy or build a new house or
to buy an existing house. The number of those
looking for new rental units totaled slightly more
than 1,000,000. Of the veterans who were in the
active housing market, two out of every five were
found to be living either in a "doubled-up" household or were quartered in rented rooms or in
trailers.
The dampening effect of present market conditions is demonstrated by the fact that the number of prospects for new quarters would be nearly
doubled if it were possible to provide houses at
the price, size and quality which the veterans desire. Under such circumstances it is estimated
that about four million veterans would be in the
active market. I t is interesting to note that
nearly all of those potential additions to the market were desirous of houses to own rather than to
rent. Of the 3,900,000 who want to move if the
right kind of housing is available, 71 percent
would like to build or buy, while only 29 percent
would still prefer to rent. Three out of five of
these home-ownership prospects have already
taken some definite steps toward the attainment
of their goals. One in every six indicated that he
had already purchased a lot or taken an option
to buy one. Better than two out of five of
these prospective home purchasers had saved
money or bonds for the specific purpose of buying or building a house.
1
This article was prepared from an NHA report containing complete details of the Census survey. Copies of "A Survey of Veterans' Housing Plans
and Present Accommodations, June 1946," may be obtained from the Construction and Housing Division of the Statistics and Analysis Branch of the
National Housing Agency.
October 1946
9
Prospective home owners
There are definite limitations to the price range
which veterans think they can afford in home
buying. Less than two out of five said they
would be able to pay more than $6,000 for a house
and only about 12 percent stated they could go
above $8,000. On the other hand, one-fourth set
their top price below the $4,000-mark and the
great majority wanted to hold the prices under
$6,000. These estimates bore a reasonable relationship to their salaries—the ratio being about
two and one-fifth times their annual incomes.
I n terms of total monthly payments, about onethird of those planning to buy or build felt they
could not afford as much as $40. One-half were
in the $40 to $60 range, and 15 percent stated
they could make payments of more than $60 a
month. The average for all veterans was slightly
less than $50.
In the rental market
More than 1,100,000 veterans, both married
and single, would move from their present quarters
and rent a dwelling unit in the coming year if
they could find a place at the price and quality
they desire. Only one veteran in ten, however,
believed that he could afford more than $60 a
month for his rent. Another two in ten could
LIVING ARRANGEMENTS
JUNE
EMPLOYMENT
STATUS
EMPLOYED
UNEMPLOYED
pay from $50 to $60. The rest reported that
they could not afford more than $50 rent. Although most of this group were in the $30 to $50
range, it is significant that 16 percent of the total
said they could not afford as much as $30 a month
for rent.
The veterans planning to rent generally felt
that they wanted to spend about one-fourth of
their current incomes for rent. This is borne out
by the fact that the average rental which they
stated they were able to pay was $43 compared
with an average weekly income of $44.
Present living arrangements
More than one-fourth of the approximately six
million married veterans who had been discharged
by June of this year were living "doubled-up" with
other families, and an additional five percent were
in rented rooms or trailers. The remaining were
established in single-family households.
Employment status had a significant bearing
upon the doubling rate among the married veterans. The survey showed that a smaller proportion of the employed veterans were living
"doubled-up," than those who were not working.
Also, the longer a veteran had been out of the
service the more likely was he to have found a
place of his own.
A large proportion of the married veterans did
OF MARRIED
VETERANS
1946
Single family household
"Doubled-up" household
Roomers or Trailer Occupants
TOTAL
V///A
M H
Wx&\
DISCHARGE
DATE
BEFORE JAN. I
AFTER
JAN. I
Figures in this chart and the one on the preceding page are preliminary estimates which may be revised slightly when the printed report is available.
10
Federal Home Loan Bank Review
not have homes of their own to which they could
return—either because their wives had relinquished them and moved in with relatives or
friends while the veterans were in the service, or
because the veterans were married while in the
service and had never established homes. On the
basis of how their wives were living three months
before their husbands left the service, the survey
revealed that more than half of the 5.2 million
veterans who w^ere married prior to their discharge
had no established homes to which they could
return. I t made considerable difference whether
the veterans had been married before they went
into the service or whether they were married
while on active duty. Of the former, over half
had a home to go back to, compared with only
one-fourth of the latter group.
By June of this year, more than three-fourths
of those married before their induction had homes,
either rented or owned, for their exclusive use.
Only about three-fifths of those married while in
the service had been able to make such arrangements; and for those married since their discharge, the ratio was even lower.
Quality of veterans' present housing
About one-fifth of the 10,500,000 veterans of
World War I I in nonfarm areas were living in
dwelling units which were in need of major repairs
or lacking a private bath. The 20 percent living
in such places were housed chiefly in units lacking
a private bath, although a few had private bath
but needed major repairs, and some units were
deficient on both scores.
General characteristics
As by-products of the housing survey, several
other interesting statistical facts about our veteran
population were collected. For example, as of
June only one-fifth of the veterans had been out
of the service for as long as 10 months. Almost
half had been out from 6 to 10 months; and about
one-third were released since the beginning of this
year. Four out of five of the veterans were employed at the time of the survey, with 21 percent
classified either as unemployed, students or persons on vacation and not seeking work. Just over
half (52 percent) of the nation's veterans were
married at the time the survey was made.
Apparently a sizable number of veterans who
were inducted from farms have settled in nonfarm
areas since their discharge. According to a special
October 1946
study made b}T the War Department in June 1944,
approximately 20 percent of the armed forces
had come from farms. However, in June of this
year, only about 12 percent of the veterans were
living in farm dwelling units.
The average income for all veterans during the
period of the survey was $40 per week. Married
veterans reported substantially higher incomes
than others. The median income of the former
was $48, while the average for the non-married
group was only $31. Seven percent reported no
income, and an equal number, less than $20 per
week. Thirty-six percent were in the range from
$20 to $40, and 34 percent had from $40 to $60
coming in each week. Only 15 percent of all
veterans were receiving more than $60 a week.
Within the next 12 months about 600,000
veterans were planning to leave the area in which
they were living at the time of the survey, but the
great majority (89 percent) contemplated no
change in their location.
About the survey itself
The detailed findings are based on a national
sample survey conducted by the Bureau of the
Census in conjunction with the Monthly Report
on the Labor Force for June 1946. The sample
comprised 25,000 households in 68 areas located in
42 states and the District of Columbia. The
estimate of the number of World War I I veterans
in June 1946 (11,830,000 excluding veterans in
hotels and institutions) was based on official
information regarding separations.
Because of sampling variations, the estimates
may differ somewhat from the results which would
have been obtained from a complete census.
However, the allowance to be made for sampling
variation can be calculated for each estimate. For
example, the chances are two in three that the
estimate of the proportion of married veterans who
were employed (87 percent) does not differ by more
than 4 percentage points from the figure which
would have been obtained from a complete census.
The sampling variability of any of the figures
depends on both the numerical value of the
percentage and the size of the base on which the
percentage was determined.
I n addition to sampling variability, the estimates are also subject to errors of response. A
complete census would also be subject to the same
type of error and to about the same degree.
11
* * * WORTH REPEATING***
INITIATIVE: "Almost without exception you will find that the associations showing most progress are
those that are helping most to
encourage new housing development.
Instead of waiting for the builders
to start promotion, and come to them
for financing, these associations in
many instances have thought out the
plans for local developments and
inspired good builders to undertake
them."
Raymond P. Harold, Worcester
Federal Savings and Loan
Association, The National Savings and Loan Journal, September 1946.
PROMOTION NEEDED: "As in the
past, asset growth of the savings and
loan business and consequently its
ability to finance new construction
depend largely on ability to attract
new savings. During the war years
the upsurgence in savings account
dollar volume was tremendous . . .
In many instances, as we all know,
new accounts were actually discouraged.
"What was a corpulent surplus of
funds beyond lending requirements
during the hectic days prior to VJday is no longer so corpulent! It's
rapidly diminishing. It is high time
for savings and loan management to
begin promotion of new savings
accounts."
Walter W. McAllister, San
Antonio Building and Loan
Association, Savings and Loans
News, September 1946.
PROPERTY PRICES: "It is easy to see
in the increased total of mortgage
loans a reflection of the high and, in
some cases, uneconomic prices at
which propert}^ changed hands . . .
Some portion of the increase may
fairly be related to this trend; but to
accept it as an explanation or a
major factor would be entirely
fallacious. Building societies—if for
no other motive than self-interest—
do not support inflated property
valuations; they know too well that
fluctuations are the inevitable result.
Their aim is a stable basis of value
for the property they accept as
security for their advances, and it
can be accepted that their policy has
been strictly conservative throughout
12
this period of transition, both in
their reading of basic values and in
the proportion of the purchase price
they were prepared to advance in
individual transactions."
Building
Societies Yearbook,
1946, London, England.
PACKAGE MORTGAGE: " H o m e
financing must be modernized. It
must keep pace with the times, particularly in these days when the
demand for homes far exceeds the
supply. Quasi public institutions
especially have a duty in this
respect.
"There is no good reason why a
person may borrow^ to finance a
house from one source and be required to go to some other source to
finance the acquisition of household
equipment and personal property
needed to translate a house into a
home. Certainly, institutions like
ours, which incite the habit of thrift
and foster the home instinct—
service institutions—should be able
to render such joint service."
Guide and Bulletin, September
1946.
RESPONSIBILITY: "The future wellbeing of our nation, and therefore of
all nations, will depend upon the
course of action adopted by this
country in dealing with our economic
problems and in the handling of our
political international relationships.
"Success or failure will not be due
to Government, business, labor, or
any other group acting individually
any more than was winning the war.
The outcome will result from the
combined actions and contributions
of each citizen, each organization,
and the Government. Upon all the
responsibility falls, and the result
will be shared by all alike."
the same degree as the emergency in
food supplies, but it is more widespread. Even before the war a large
proportion of the world's population,
judged by local standards and local
conditions, lacked decent habitation.
It is not hard to figure how, in 6
years of war, with the attendant
destruction, cessation of normal
building, and deterioration of existing dwellings, the situation has
grown steadily worse. Today the
need, all told, runs up to 150 million
homes."
Jacob Crane, Special Assistant
to the Administrator, NHA,
The Journal of Housing, September 1946.
THE BOOKSHELF
Although inclusion of title does not
necessarily mean recommendation by
the REVIEW, the following recent publications will be of interest.
BEHIND
THE
BLUEPRINTS:
Research Division, Meredith Publishing Company, Des Moines 3,
Iowa. 1946. 45 pp. Free. (Results
of a survey of individuals definitely
planning to build, showing ideas and
plans that will be used in new
homes.)
RENTAL
HOUSING FOR VETERANS: VEHP. September, 1946.
Federal Housing Administration,
Washington 25, D. C.
NEW CITY PATTERNS: By S. E.
Sanders and A. J. Rabuck. Reinhold
Publishing Corporation, 330 West
42nd Street, New York 18, N. Y.,
1946. Index. 197 pp. $8.00.
The Hon. John W. Snyder,
Secretary of the Treasury, before
the Executive Club of Milwaukee, Wisconsin, Sept. 23, 1946.
FOR THIS WE FOUGHT: By
Stuart Chase. Available at $1.00
from The Twentieth Century Fund,
330 West 42nd Street, New York 18,
N. Y.
WORLDWIDE HOUSING CRISIS:
" I t is apparent that we face a worldwide housing crisis, aggravated and
accentuated by the war, but having
its roots in the prewar period. The
housing emergency is being felt
throughout the world in somewhat
THE ECONOMICS OF HOUSING
AS PRESENTED
BY ECONOMISTS,
APPRAISERS,
AND
OTHER EVALUATING
GROUPS:
By Laura M. Kingsbury. 1946.
177 pp., bibliography. $2.50. King's
Crown Press, New York, N. Y.
Federal Home Loan Bank Review
THE INCREASED PRODUCTION OF BUILDING
MATERIALS
The steadily growing output of building materials is one of the
brightest spots in the current construction picture. Reports for
August show new production gains in most of the more critical
items. The outlook for the rest of the year is equally encouraging.
•
R E A L progress has been made in stepping UD
the production of critically needed buildingmaterials. This fact is clearly demonstrated by
the September reports of the Housing Expediter's
Office and the Civilian Production Administration which cover July and August manufacturing
output. The substantial gains indicate the groundwork of actions taken earlier this year to stimulate
production are beginning to " p a y off" and offer
the hope of an increased volume of home construction as materials reach the building sites.
In summarizing the progress made through the
end of August, the CPA report states that the
record of achievement had probably never been
surpassed in the history of building material
production over a comparable period of time.
" I n d e e d / ' it goes on, " i t compares most favorably
with the rates of increase in military production
PRbDUCTl0N
programs of high urgency achieved during the
war period. The record is a tribute to the cooperation of building materials producers and
workers with the Government program for a
rapid expansion of building materials production." Government actions such as priorities
aid and allocations of scarce materials to producers, limitation orders, premium payments,
price and wage increases and aids in recruiting
manpower have also helped to bring about the
successful results.
Specific examples
Lumber: Despite predictkms to the contrary because of seasonal vacations, July was the seventh
consecutive month in 1946 to show an increase
in the output of lumber, and the third in a row
where output exceeded 3 billion board feet. This
OF K
Gypsum Board 8 Lath
250
200
150
100
J
250
F
M
A
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J
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A
t
l
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A
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F
M
A
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1 Lavatories
1
1
Wire Nails
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J
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A
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L
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50
250
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New .
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1
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F
Warm Air Furnaces
Highest
Since V-J Day
J
_i_J
I
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1
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1 1
50
National Housing Agency.
October
1946
715853—46-
13
tures increased substantially during August —•
the first rise in the output of all staple plumbing
fixtures since last April. Bathtubs were increased
27 percent to almost 104,000 units, which was
above the 1941 monthly average. A new postwar high was set in the production of lavatories
and water-closet bowls, while sinks were up 35
(Continued on p. 32)
Membership of Advisory Council
•
National Housing Agency.
performance has not been equaled since the middle
of 1943. Production of hardwood continued to
rise, and this fact together with increased setaside quantities, premium payment plans and
additional quantities obtainable through the
recent cutting and limitation orders should result
in an improvement in the supplies of hardwood
flooring.
The output of softwood plywood
jumped 30 percent in August to almost equal the
highest month so far this year.
Brick: The production of common and face brick
continued its spectacular summer rise as the
August total (476 million brick) hit the highest
level since October 1941. The magnitude of the
recent increases in this material indicates that
brick is not likely to be an important bottleneck
in construction next year.
Cast iron soi! pipe: August production of this material was up 20 percent to a new postwar high
and was more than three-fourths of the 1941
monthly average. The increase is attributed to
the channeling of pig iron to this industry by
CPA action, and to the premium payment plan
for soil pipe. Practically all foundries are now
operating on a 6-day week. Recent action to
conserve this material (see September R E V I E W ,
page 362) will also help to stretch the supply.
Gypsum board and lath: The quantity of gypsum
board and lath manufactured during August
reached 304 million square feet—a new record
for the industry. The premium payment plan for
paper liner required for this product has played
an important role in expanding the supply of this
critical component of gypsum board. Annual
production at the August rate is about equal to
the estimated requirements for this year.
Plumbing fixtures: Production of all plumbing fix14
T H E election and appointment of members of
the Federal Savings and Loan Advisory Council was announced recently by the Federal Home
Loan Bank Administration. These members will
serve until May 27, 1947.
Elected:
Boston:
Milton A. Barrett, Fidelity Co-operative B a n k ,
Fitchburg, Mass.
New York: J. Alston Adams, Westfield Federal Savings
a n d Loan Association, Westfield, N . J.
Pittsburgh: James J. O'Malley, First Federal Savings a n d
Loan Association of Wilkes-Barre, Wilkes-Barre,
Pa.
Winston-Salem:
F r a n k Muller, Jr., Liberty Federal Savings and Loan Association, Baltimore, Md.
Cincinnati: W. Megrue Brock, T h e Gem City Building
a n d Loan Association, D a y t o n , Ohio.
Indianapolis:
Walter Gehrke, First Federal Savings a n d
Loan Association of Detroit, Detroit, Mich.
Chicago: E a r l S. Larson, First Federal Savings a n d L o a n
Association of Moline, Moline, 111.
Des Moines: J o h n W. Ballard, Safety Federal Savings a n d
Loan Association of K a n s a s City, K a n s a s City, M o .
Little Rock: O. W. Boswell, First Federal Savings a n d
Loan Association of Paris, Paris, Tex.
Topeka: R a y H . B a b b i t t , H o m e Building a n d Loan
Association of Lawton, Lawton, Okla.
San Francisco: Guy E . Jaques, P o r t l a n d Federal Savings
a n d Loan Association, P o r t l a n d , Ore.
Appointed:
Ben A. Perham, P e r h a m F r u i t C o m p a n y , Y a k i m a ,
Wash.
H a r r i n g t o n Wimberly, Altus, Okla.
(Commissioner, Federal Power Commission, W a s h i n g t o n ,
D . C.)
E r n e s t T. Trigg, Philadelphia, P a .
(National
P a i n t , Varnish a n d L a c q u e r Association, W a s h ington, D . C.)
B. H . Wooten, Republic N a t i o n a l B a n k of Dallas,
Dallas, Tex.
Charles T. Fisher, Jr., N a t i o n a l B a n k of Detroit,
Detroit, Mich.
H e n r y G. Zander, Jr., H e n r y G. Zander & Co.
(realtors), Chicago, 111.
Federal Home Loan Bank Review
THE MORTGAGE INVESTMENT PORTFOLIO
OF LIFE INSURANCE COMPANIES
Insurance companies showed a reduced mortgage portfolio last
year despite an increase in new lending, according to FHLBA
statistics which cover more than nine-tenths of all operating companies. A general diversion of funds from small home investments was another characteristic of 1945 trends.
•
A general recession in the volume and proportion of the mortgage portfolio of life insurance companies was apparent from a study of
year-end data. With the total of admitted assets
at an all-time high and mortgage investment
opportunities temporarily in eclipse, these companies followed the trend evident in other types
of financial institutions, shifting a greater portion
of their investment funds to Government bond
accounts. According to the Institute of Life Insurance, almost two-thirds of new investments last
year were in U. S. securities, bringing the Government portfolio of life insurance companies on
December 31 to 46 percent of total assets—a
higher ratio than savings and loan associations
but less than that shown by insured commercial or
mutual savings banks.
An analysis of data gathered by the Federal
Home Loan Bank Administration shows that,
although new mortgages acquired during 1945
were estimated at over a billion dollars (the first
time since 1942 that such a mark has been
reached), they were more than offset by the high
rate of repayments. As a result, the total mortgage portfolio registered the first real decline since
1937. Down 4 percent in 12 months, the balance
outstanding on December 31, 1945 stood at
$6,514,000,000. This was twice the decline registered by mutual savings banks which together
with life insurance companies were the only types
of mortgage lending institutions to show decreases
in mortgage holdings during 1945.
Among all types of real estate security, the
greatest decline in holdings occurred in loans on
1- to 4-family homes. The 8-percent drop (the
first registered in nine years) brought the total
at the close of last year to $2,258,000,000, or 35
percent of the entire mortgage portfolio compared
with 36 percent on December 31, 1944.
A slight increase (up 1 percent to $1,374,000,000) in loans secured by multi-family dwellings
October 1946
brought the proportion of these holdings from 20
to 21 percent of the total portfolio. However,
this was not sufficient to offset the drop in small
home holdings and the balance on all residential
mortgages declined 5 percent. At the end of
last year it totaled $3,632,000,000 and represented 56 percent of all real estate loans outstanding.
Housing projects
No discussion of recent life insurance company
real estate activity would be complete without
mention of the rapidly expanding interest of these
institutions in large-scale rental projects built and
operated as investments (as distinct from owned
real estate which includes only foreclosed prop-
;M0R1GA^
By :'fypte^Wi&$^M
SrtyoNS
COMMERCIAL^
I TO 4
FAMILY^
~*^
FARM^
1935
1936
1937
1938
1939
J940
19<H
}*4Z
iI ll li fl H
ll
15
erties). More than $150 million worth of such
rental housing is now under construction or
scheduled to be started within the year, according to a recent report of the Institute of Life
Insurance. This exceeds the value of such projects already in operation and brings the total of
this type of life insurance company investment
to more than $275 million. Offering an excellent earning investment for the greatly increased
policyholder funds, these apartment developments also contribute to solving the national
housing problem. I t is estimated that at the
completion of the current projects, living accommodations will have been provided for 150,000 persons.
The widespread character of this program is
indicated by the fact that more than 20 such
projects, many of them scientifically planned, selfcontained communities, are now owned and
operated in 10 states from New York to California.
Restrictive state and local laws have in many
cases retarded or precluded such developments
but as these are changed it is anticipated that this
type of investment by life insurance companies
will show even further gains.
Ratio to assets
Turning again to the data contained in the
FHLBA annual study, the downward trend apparent since 1942 in the ratio of mortgage holdings
to admitted assets of life insurance companies was
continued last year. From 1937 through 1943 this
ratio fluctuated, between 19 and 20 percent but
since then has dropped successively until last
year it was equal to only 15 percent of resources.
Due to the wartime contraction of small home
investment possibilities, the relationship of these
holdings to assets has declined fractionally each
year. At the end of 1945 it stood at 5 percent of
assets.
ment properties increased from $107 million at
the end of 1944 to $126 million last year. However, in relation to the total loans on multifamily units, the insured portion accounted for
only 9 percent.
Insurance companies, according to FHA statistics, at the end of last year held more than
one-third of the face amount of mortgages insured under Titles I I and VI. This included onethird of all mortgages and firm commitments on
FHA-insured loans on small home properties and
three-fifths of the face amount of insurance in
force on multi-family structures.
New loans during 1945
Last year for the first time since 1941 the volume of new loans on all types of properties made
cr purchased by life insurance companies showed
an increase. However, the rate of advance was
less than in 1944 (6 percent compared with 9
percent) and the $1,045,000,000 total was still 6
percent below the prewar 1941 figure. Paralleling
the experience of other mortgage lenders, the
average size of life insurance company loans
increased-—in this instance from $9,600 to $11,000.
Recent FHLBA statistics on nonfarm mortgage recordings have indicated a decreasing par-
$ 3
FHA activity
The chart on this page illustrates the progressively widening gap between insured and uninsured mortgages on small homes. Of the total
loans outstanding on 1- to 4-family homes, approximately 55 percent were insured by the FHA at
the close of last year. This was a somewhat
higher ratio than at the end of the previous year,
although the actual dollar volume of insured 1to 4-family loans showed a slight decline in 1945.
On the other hand, insured mortgages on apart16
Federal Home Loan Bank Review
ticipation by life insurance companies in the field
of small home financing. While that series is not
strictly comparable to mortgage lending data, the
reports on which this survey is based bear out
the fact that since 1942 when this category accounted for 55 percent of the new loans of these
institutions, it has played a progressively smaller
part in each year's business. By 1944 the ratio
of small home loans to total mortgage lending
activity dropped to 43 percent but it was not
until last year that the 1- to 4-family properties
failed to place as the favorite class of security for
mortgage investment by life insurance companies.
;.:' LIFE {NSUftANCE v •'OOMMpll;|g
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^>J>~" » > . » •
••••».« * 3M **<ir
^FARM
leas ^W^I^^SiS^^^^^BIllll flllliBSillm1Illlli l l
The $361,000,000 of mortgages made represented
a 14-percent decline from the 1944 aggregate, the
largest drop registered in any category last year,
and brought these loans down to only 35 percent
of new business—yielding first place in the total
volume to loans on commercial properties.
Loans on small homes were not alone in their
decline as they had been during 1944. Last year,
the volume of business secured by apartment properties and farm loans reversed the previous year's
increases and went down 8 percent in the former
instance and 3 percent in the latter. New loans
on commercial properties were the only ones to
October 1946
advance during 1945. Up 60 percent, they totaled
$372 million and were also the sole loan category
to show an increase in ratio to total lending.
Real estate owned
The condition of the real estate market enabled
life insurance companies to reduce their real
estate owned account by 40 percent to $287,000,000.1 This meant that at the end of last
year, the book value was equal to 4 percent of the
balance of loans outstanding; in 1944 the ratio
was 7 percent.
Demands created by the housing shortage were
again reflected in the sharp drop in the dollar
volume of 1- to 4-family houses carried on the
books, resulting in a decline of two-thirds from
1944. The $6,561,000 shown at the end of last
year represented only 2 percent of total real estate
holdings.
At the end of 1945, multi-family dwellings
owned by life insurance companies (excluding
housing projects built and operated as investments) represented 28 percent of total real estate
holdings compared with 22 percent in 1944. The
proportion of farm holdings also increased—from
25 percent in 1944 to 28 percent last year.
1
These figures exclude office buildings, real estate sold on contract and
housing projects built and held as investments by life insurance companies.
17
Amendments to Rules and Regulations
Amendments relating to
Administrative Procedure Act
On June 11, 1946, the Administrative Procedure
Act was approved by the President. This Act,
effective September 11, 1946, requires Government agencies to make separate statements of
their organization, procedure and substantive
rules. It also provides for the publication of, and
for the making available to the public of, certain
opinions, orders, rules and matters of official record, any of which are not of a confidential nature.
Notice of certain proposed rules and regulations
is required in order to give interested persons an
opportunity to present their views on the same
and such persons may also petition for the revision
of rules and regulations in force.
The change-over involved only a few minor,
technical and procedural amendments to the Rules
and Regulations for (1) the Bank System, (2) the
Savings and Loan System, (3) the Insurance of
Accounts, and (4) the Home Owners' Loan Corporation, to effect strict conformance with the
provisions of the Administrative Procedure Act.
These amendments were adopted prior to September 11, 1946, and were incorporated by reference
into the three statements required by the Act.
By the amendments quoted below these statements are incorporated, principally as a matter of
notice, into the operating manuals circulated to
the field. The statements are published in Section 4, Part I I , of the September 11, 1946, issue
of The Federal Register.
FHLBA
Bulletin N o . 74
Amendment to Rules and Regulations for the Federal Savings
and Loan System relating to procedures for the adoption and
publication of Rules, Regulations or Amendments.
(Adopted September 5, 1946; effective upon
filing with The Federal Register on September 11,
1946.)
Except for subsection (a) of Section 201.2,
the Federal Home Loan Bank Administration
rescinded Sections 201.1 and 201.2 of Rules and
Regulations for the Federal Savings and Loan
System and, effective September 11, 1946, (upon
filing with The Federal Register) substituted the
following new paragraphs:
18
201.1 Publication of rules, regulations or amendments. " There shall
be published in the Federal Home Loan Bank Review, in the issue
immediately following the publication thereof in the Federal Register
(as required by the Federal Register Act, 49 Stat. 500; 44 U. S. C , Sup.
301-314, as now or hereafter amended, regulations prescribed by the
Administrative Committee of the Federal Register, and approved by
the President, under said Act, and the Administrative Procedure Act,
approved June 11, 1946) all rules, regulations or amendments issued
by the Federal Home Loan Bank Administration pursuant to the
authority contained in the Home Owners' Loan Act of 1933 (48 Stat.
128; 12 U. S. C. Chapter 12) as now or hereafter amended, and the Governor of the Federal Home Loan Bank System shall cause a copy of
each such rule, regulation or amendment to be distributed to each Federal association. He shall have available additional copies for distribution
upon request therefor. (Sec. 5 (a) of H. O. L. A. of 1933, 48 Stat. 132;
12 U. S. C. 1464(a)).
201.2 Rules, regulations and amendments.
(b) Rules, regulations or amendments without notice. Any proposed
rule, regulation or amendment may be adopted by the Federal Home
Loan Bank Administration without compliance with the requirements
of paragraphs (c), (d), (e) and (f) hereof, which involves any matter
relating to said Administration management or personnel or to public
property, loans, grants, benefits, or contracts, or which is deemed to
apply to interpretative rules, general statements of policy, rules of said
Administration organization, procedure, or practice, or unless all persons subject to any such proposed rule, regulation or amendment are
named and either personally or otherwise have actual notice thereof
in accordance with law, or in any situation in which said Administra
tion for good cause finds (and incorporates the findings and a brief statement of the reasons therefor in the rules, regulations or amendments
issued) that notice and public procedure thereon are impracticable,
unnecessary or contrary to the public interest.
(c) Notice of proposed rules, regulations or amendments not within
section 201.2 (b). Excepting any proposed rule, regulation or amendment adopted pursuant to Section 201.2 (b) hereof no proposed rule,
regulation or amendment (except any substantive rule granting or
recognizing exemption or relieving restriction) will be adopted by the
Federal Home Loan Bank Administration until at least thirty days
have elapsed after publication in the Federal Register of general notice
of such proposed rule, regulation or amendment including (1) a statement of the time, place, and nature of public rule making proceedings,
(2) reference to the authority under which the rule, regulation or amendment is proposed, and (3) either the terms or substance of the proposed
rule, regulation or amendment or a description of the subjects and issues
involved. Notice of such proposed rule, regulation or amendment
shall also be mailed to each member of the Federal Savings and Loan
Advisory Council and filed with the editor of the Federal Home Loan
Bank Review for publication in the next available issue of such Review.
(d) Participation of interested persons in a proposed rule, regulation
or amendment. At any time within thirty days after publication in
the Federal Register of general notice of a proposed rule, regulation or
amendment as prescribed in paragraph (c) hereof, interested persons
may participate in the making of the same through the submission of
written data, views, or arguments thereon delivered within the prescribed time to the Secretary to the Federal Home Loan Bank Administration, 101 Indiana Ave., N. W., Washington, D. C. Interested
persons may also petition for the issuance, amendment or repeal of any
rule, regulation or amendment and deliver such petition to the Secretary to the Administration at the address given herein.
(e) Hearings on regulations. After receipt of written requests therefor to the Secretary to the Federal Home Loan Bank Administration
of at least seven members of the Federal Savings and Loan Advisory
Council, or of at least fifty Federal associations (accompanied by certified resolutions of the boards of directors thereof), said Administration will fix a time and place for a hearing on a proposed rule, regulation
or amendment, or existing rule or regulation to which petitioners object. The Secretary to said Administration will give written notice
of the time and place of such hearing to the members of the Federal
Savings and Loan Advisory Council and to each of the Federal associations requesting such hearing. The filing of request for a hearing upon
an existing regulation to which petitioners object shall not suspend the
operation of such regulation. Any interested person or Federal associ-
Federal Home Loan Bank Review
ation may appear in person at such hearing before said Administration
or may be represented at such hearing by any of its directors, officers,
employees, agents or attorneys-at-law; and may offer evidence and
examine witnesses.
(f) Recommendations and representations at hearings by persons other
than those requesting hearing. No hearing upon a proposed rule, regulation or amendment, or existing rule or regulation to which the petitioners object will be confined to persons requesting such hearing; but
each such hearing will be open to interested persons or representatives
of any Federal association. Recommendations of other institutions
that may be affected, or from an organized trade association, may be
filed with the Secretary to the Federal Home Loan Bank Administration either prior to or during any hearing and any such institutions or
associations may appear in person at such hearing before said Administration or may be represented at such hearing by any of its directors,
officers, employees, agents, or attorney s-at-law; and be entitled to be
heard.
FHLBA
Bulletin N o . 76
Amendment to Rules and Regulations for the Federal Home
Loan Bank System relating to the status of previously published
rules and regulations.
(Adopted September 9, 1946; effective upon filing with The Federal Register on September 10,
1946.)
The Rules and Regulations for the Federal
Home Loan Bank System have been amended by
the addition of the following new paragraph to
Section 8.5:
Sec. 8.5. Material incorporated into rules and regulations.
Material now or hereafter filed by the Federal Home Loan Bank
Administration, Federal Savings and Loan Insurance Corporation, and
Home Owners' Loan Corporation for publication in the Federal Register
as required by the Federal Register Act (49 Stat. 500, U. S. C. Sup. Ch.
8A) or by Sections 3 and 4 of the Administrative Procedure Act, approved
June 11, 1946, (Pub. Law 404, 79th Cong.; 68 Stat. 237), is hereby made
a part of these rules and regulations insofar as the same is applicable to
the Federal Home Loan Bank System, and to the same extent as though
published in these rules and regulations.
FHLBA
Bulletin N o . 77
Amendment to Rules and Regulations for the Federal Savings
and Loan System relating to the status of previously published
rules and regulations.
(Adopted September 9, 1946; effective upon
filing* with The Federal Register on September 10,
1946.)
The Rules and Regulations for the Federal
Savings and Loan System have been amended by
the addition of the following new paragraph to
Section 201.5:
201.5 Material incorporated into rules and regulations.
Material now or hereafter filed by the Federal Home Loan Bank
Administration, Federal Savings and Loan Insurance Corporation, and
Home Owners'Loan Corporation for publication in the Federal Register
as required by the Federal Register Act (49 Stat. 500, 44 IT. S. C. Sup.
Ch. 8A) or by Sections 3 and 4 of the Administrative Procedure Act,
approved June 11, 1946, (Pub. Law 404, 79th Cong.; 60 Stat. 237), is
hereby made a part of these rules and regulations insofar as the same is
applicable to the Federal Savings and Loan System, and to the same
extent as though published in these rules and regulations.
October 1946
FHLBA
Bulletin N o . 7 9
Amendment to Rules and Regulations for the Savings and
Loan System relating to additional charge on delinquent loan
payments.
(Adopted October 3, 1945; effective upon filing
with The Federal Register on October 8, 1946.)
A minor amendment to paragraph (b), Section
203.11, of the Rules and Regulations for the Federal Savings and Loan System has been adopted
by inserting in the second sentence the words "or
on any part thereof/'
The sentence now reads:
"Such additional charge shall be in the form of an increased rate of interest on the unpaid balance of the loan, or on any part thereof, for the
period of delinquency."
FSLIC
Bulletin N o . 32
Amendment to the Rules and Regulations for Insurance of
Accounts relating to procedures for the adoption and publication
of Rules, Regulations or Amendments.
(Adopted September 5, 1946; effective upon
filing with The Federal Register on September 11,
1946.)
Sections 301.22 and 301.23 of the Rules and
Regulations for Insurance of Accounts, except
subsection (a) of Section 301.22, were rescinded
and, effective September 11, 1946, the new
paragraphs printed in full below were substituted
therefor:
301.22 Amendments.
(b). Rules, regulations and amendments without notice. Any proposed
rule, regulation or amendment may be adopted by the Federal Savings
and Loan Insurance Corporation without compliance with the requirements of paragraphs (c), (d), (e), and (f) hereof, which involves-any
matter relating to said Corporation management or personnel or to
public property, loans, grants, benefits, or contracts, or which is deemed
to apply to interpretative rules, general statements of policy, rules of
said Corporation organization, procedure, or practice, or unless all persons subject to any such proposed rule, regulation or amendment are
named and either personally or otherwise have actual notice thereof in
accordance with law, or in any situation in which said Corporation for
good cause finds (and incorporates the findings and a brief statement of
the reasons therefor in the rules, regulations or amendments issued) that
notice and public procedure thereon are impracticable, unnecessary or
contrary to the public interest.
(c). Notice of proposed rules, regulations or amendments not within
paragraph (b). Excepting any proposed rule, regulation or amendment
adopted pursuant to paragraph (b) hereof, no such proposal (except any
substantive rule granting or recognizing exemption or relieving restriction) will be adopted by the Federal Savings and Loan Insurance Corporation until at least thirty days have elapsed after publication in the
Federal Register of general notice of the same, including (1) a statement
of the time, place, and nature of public rule making proceedings, (2)
reference to the authority under which the rule, regulation or amendment
is proposed, and (3) either the terms or substance of such proposal or a
description of the subjects and issues involved. Notice of such proposal
shall also be mailed to each member of the Federal Savings and Loan
Advisory Council. A copy of such proposed rule, regulation or amendment shall be filed with the editor of the Federal Home Loan Bank Review for publication in the next available issue of such Review.
(Continued on p. 24)
19
RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS
INDEX
/935-/939= 100
BY YEARS
550
INDEX
BY MONTHS
—i
1
I
1
1
1
550
1 1
ADJUSTED FOR SEASONAL VARIATION
500
500
./t
r
*»«/
^—
450
•
A.
\\f» »
450
400
400
350
350
;J
/
300
250
/
F>RIV.CONS1"RUOTIC
£* <
200
(FED. HOME LN. BK. ADM.)
(U.S. DEPT OF LABOR-)
\
150
Y / '*
krSVGS. a IN.
-^
" LENDING
^
i \ i'•
(F.H.L.B.A.) . . "'Jf
%•
VA
\ % '**» ,.-'
100
50
*
^
f
/
/
I
V* |
L/
'
150
1
100
A
50
NONFARM
FORECLOSURES^^
1
200
^SVGS. B LN LEND. ,
PRIV, CONSTRUCTION-^J
_ i _ J _ _ |
M
qm^
k
250
/*
•
1
V+'l
/
W*
*» _#»
/
NONFARM FORECLOSURES
(FED. HOME LN. BK. ADM.) 1
0
300
LLT
1 JL 1
.J* L_
J_
_J
1
1
1
r 1 1 1 1 1 1 1 1T 1 1 I "1 1 T t i l l T T T33= J J - . J - L
300
i — i — i — i — i — i — I — i — r
ADJUSTED FOR SEASONAL VARIATION
pINC. &AYMTS.
250
.^* >r
INDUSTRIAL PRODUCTIC2/V-W ' > ^ \ V.
I h t U . Kfc.5fc.NVt BUANUi
/y
,••••" \
/
200
INDUSL.
ICO ME PA YME/vrs
J
100
rt
3^
J. S.C)EPT. OF 30MN*ERC i)
\^
tiii
Vj
<MF
# _ (J S .
,
*£*
[)EPT OF l.ABO R)
100
1 1 1 1 11 11
,
1935 " 19 39 = 1 0 0
,
BILLIONS
1
$
8
1943
20
uhiltihi
1944
illnlnlii
1945
MIIIIIIIM
1946
CONSUMER
1944
CREDIT
11 11 1 1 11 11 11
1945
1946
INDEX
50
CONSUMERS' PRICE INDEX j
I40l
r
^
100j a i L n l u ' l i i
150
J
tag?
DEPARTMENT STORE SALES
300,
200
vr^r^A
MFG. EMPLOY ^ \
-OY
1930'31 '32 '33 '34 '35 '36 '37 '38 '39 *40 *4l '42 '43 '44 '45 '46
INDEX
250
PROD.^\
150
50
300
/
1
1 9 3 5 - 1 9 3 9 = 100
TOTAL CONSUMER CREDIT
IMIM illnlnlii
1943
1944
/
Mini..1..
1945
illnlnlii
1946
100
ilnli.il
1943
ilululii
1944
ihiliih
1945
lllllllllll
1946
Federal Home Loan Bank Review
((((((MONTHLY
BUSINESS CONDITIONS—Industrial
production was near capacity
If industrial production can be maintained to the
end of the year at the rate achieved during August,
the Civilian Production Administration predicted
in its last monthly report that most of the country's
reconversion problems can be eliminated by that
time. This report showed the production of
basic materials close to capacity during August,
bringing over-all economic activity to a level
above the top period of war spending in the spring
of 1945. Almost all kinds of consumer goods reflected advances over the previous month, with
truck production at the highest monthly rate on
record, while the output of passenger cars was up
10 percent in spite of material shortages and
renewed labor difficulties. Among the heavy industries, steel operations hit 88 percent of capacity—the highest this year. Progress in the building materials fields is discussed in detail on page
13.
As measured by the Federal Reserve Board
adjusted index, industrial production in August
stood at 176 percent of the 1935-1939 base period
compared with a revised figure of 172 in July and
186 in August 1945—the last month of the war.
With many industrial plants at or near capacity
production, total employment rose to 58 million.
This left the available labor pool at the almost
irreducible minimum of 2 million (including unemployables and persons between jobs), the lowest
figure since December 1945. The increase in total
employment since VJ Day is the net result of
gains of 1,000,000 in construction, 800,000 in
trades and 500,000 in other categories. These
increases were partly offset by declines in manufacturing and Government employment.
Index
[1935-1939=100]
August
1946
Julv
1946
Percent
change
August
1945
Percent
change
H o m e construction (private) 1
R e n t a l index ( B L S )
B u i l d i n g m a t e r i a l prices . . . _ _ _
Savings a n d loan lending *
Industrial production !
Manufacturing e m p l o y m e n t ! _ . .
I n c o m e p a y m e n t s i__
_ _ _ .
236.8
108.7
148.2
442.0
176.0
146.8
252.3
' 231. 9
108.5
147.5
456.7
r
172. 0
' 145. 5
' 250.6
+2.1
+0.2
+0.5
-3.2
+2.3
+0.9
+0.7
80.9
108.3
131.5
236.6
186.0
150.9
236.0
+192. 7
+0.4
+12.7
+86.8
-5.4
-2.7
+6.9
r
1
Revised.
Adjusted for normal seasonal variation.
October 1946
S U R V E
Y|?» » »
Retail trade continued to climb, and in August
reached a new high of 289 percent of the Federal
Reserve Board seasonally adjusted index (19351939=-100). This compared with 273 in July and
an average level of 254 in the first half of this year.
Increased production, however, has still been insufficient to enable inventories to catch up with sales.
The re-imposition of livestock and meat ceilings
at the end of August brought a decline in the overall index of wholesale commodity prices, as reported by the Bureau of Labor Statistics. In
spite of the short-term decline in this measure of
the general level of primary market prices, the
index at the end of the first week in September
was 16 percent above the same period last year.
Average prices for all commodities other than farm
products and food remained 10 percent higher in
the comparable period.
The cost of living, as measured by the BLS
consumers' price index, jumped again in August
when, prior to the OPA rollback, it stood at 143.7
(1935-1939=100). This was almost 2 percent
above July and represented a gain of nearly 12
percent since the end of the war.
BUILDING ACTIVITY—August totals
down 9 percent
The total volume of residential construction in
all nonfarm areas during August was just under
70,000 units—a decline of 6,900 units, or about 9
percent, from the revised estimates for July.
Analysis of the Department of Labor series of
building permits issued * reveals that the decline
was all in contracts awarded for publicly financed
units, with permits for privately financed home
construction showing a fractional increase.
The August nonfarm total comprised almost
61,000 privately financed dwellings and 9,000 units
to be constructed out of public monies. Of the
private units, 92 out of every 100 permits issued
were for single-family dwellings. This was the
highest ratio of 1-family units to the total private
1
These data cannot be directly compared with the series estimating actual
construction "starts" which have been adjusted to account for lapsed building permits and for the lag between the actual start of construction and the
issuance of building permits.
21
Mm
THOUSANDS Of
WELL. UNITS
80 r
—-•
REStOENTIAt GdWSTRUCTiON
A l t NQNFARM AREAS
\jrALL PUBLIC
construction for any month so far this year. The
figures indicate that large-scale rental housing
projects have not yet begun to appear in any
substantial numbers.
Year-to-date totals show that building permits
were issued during the first eight months for
478,500 privately financed units and contracts
awarded for 67,000 units in public projects, or an
over-all total of nearly 546,000. This is at an
annual rate approaching the 800,000 mark. If
this pace is maintained, we will have witnessed
the best building year since 1927. Projecting the
eight-month totals for private construction indicates an annual output above 700,000 units—a
sum not equaled since 1928. [TABLES 1 and 2.]
The combined price index of the cost of constructing the standard six-room house, computed
by the National Housing Agency, rose more
Construction costs for the standard house
[Average month of 1935-1939=100]
July Percent August Percent
Element of cost August
1946 1946 change 1945 change
Total
r
Revised.
22
146. 1 143. 7
157. 2 155. 6
+ 1.7
+ 1.0
149. 8 147. 7
+ 1.4
r
M O R T G A G E LENDING—Home
purchase loans down 13 percent since M a y
Suggestive of increased buyer resistance to rising
real estate prices, the volume of loans made by
savings and loan associations for the purchase of
existing homes declined for the third consecutive
New mortgage loans distributed by purpose
[Dollar amounts are shown in thousands!
Purpose
August
1946
Julv
1946
Construction
$59, 377 $59, 708
Home purchase. 211,804 216, 369
Refinancing
22, 032 21, 388
Reconditioning. _ 8,481 7,327
Other purposes._ 22, 765 21, 256
B U I L D I N G COSTS—Material prices
showed higher gains
Material
Labor
steeply in August than in July primarily because
of an upsurge in material prices. The total index
stood almost 150 percent above the 1935-1939
average, up 2 points during the month. Indications are that the September rise will exceed that
of August. Upward revisions of OPA price
ceilings brought the index of materials to 146.1 for
August. The increase in labor rates was slightly
less than in July. The index of labor costs now
stands at 157.2.
Wholesale building material prices, as measured
by the Department of Labor index, advanced less
than 1 percent during August, bringing the index
to 148.2 percent of the 1935-1939 average. Brick
and tile prices were up 3 percent and cement, 2
percent. All other increases were fractional and
the index for paint and paint materials actually
declined almost 1 percent. [TABLES 3, 4 and 5.1
133. 9
144. 5
+ 9. 1
+ 8. 8
137. 4
+ 9. 0
Percent
change
August
1945
- 0 . 6 $20, 730
- 2 . 1 120, 557
+ 3. 0 17, 146
+ 15.7 3,971
+ 7.1 11,259
Percent
change
+ 186. 4
+ 75. 7
+ 28. 5
+ 113. 6
+ 102. 2
Total ._ 324, 459 326 048 - 0 . 5 173, 663 + 86. 8
month from a peak of $243,000,000 in May to
$212,000,000 in August of this year. This consistent reduction, amounting to nearly 13 percent, is
particularly significant since it occurred during a
period of rapid acceleration in all new home loans
insured or guaranteed by the Veterans Administration.
I t has been anticipated that home purchase
lending might show some tendency to taper off,
and later decrease significantly, as residential
building volume exhibited substantial recovery
from low wartime levels; however, activity in
Federal Home Loan Bank Review
1944~l!4#,
9 1 TYPE OF «8S04?1«TIO»r
«0#
The steady upward climb in the average size
of mortgage loans has played a very important
part in boosting the dollar volume of financing
activity to the current record level. This is
readily apparent in the fact that, compared with
the same month last year, the number of mortgages recorded in August (228,000) was 59 percent higher while the value of such instruments
was up 104 percent.
Percent distribution of mortgages recorded
in selected months, 1945 and 1946
FEDERALS*
J/
1946
1945
Type of lender
>^l(RflU
*S^'
fc^
NONMEMBERS^
TTTT?
TI
Aug. Nov. Feb.
) I f r I I ,.] I I I I I I
1944
loans by savings and loan associations for home
construction has also been sluggish during the
summer months, with a net decline of nearly 5
percent from the peak month of May 1946.
Whereas new construction loans at that peak weie
nearly five times those for the same month of 1945,
the contrast with a year ago had been reduced to
less than three times by August.
While not conclusive evidence of a definite
down-turn in lending activity for existing homes, a
decreasing volume at a time when all evidence
points toward continued rises in unit cost provokes
serious thought for lending institutions in appraising prospects for further expansion in mortgage
portfolios.
Total loans made during August by all savings
and loan associations declined less than 1 percent
for the second successive month. The $324
million brought the year-to-date cumulative figure
to almost $2,500,000,000. [TABLES 6 and 7.]
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
Percent
37.0
4. 2
19. 1
3.8
24. 5
11. 4
Percent
35. 2
4. 2
22. 8
4.0
22. 7
11. 1
Percent
34. 6
4.0
25.0
5.4
19. 4
11. 6
Percent
31. 1
4.7
27.3
5. 4
18. 4
13. 1
Another significant development which accompanied the swift rise in real estate financing
during the last 12 months is the marked change
which has occurred in the proportion of total
financing accounted for by the various types of
lenders. These shifts stand out in the accompanying table. [TABLES 8 and 9.]
Mortgage recordings by type of mortgagee
[Dollar amounts are shown in thousands]
August
Type of lender
1946
amount
new all-time high
Registering a small increase over July, the level
of real estate financing activity reached still
another new high in August. Although only 2
percent greater than in July, the aggregate value of
nonfarm mortgages of $20,000 or less recorded
during August approximated $1 billion, and was
more than double the recording volume in the
same month last year.
Percent
36. 6
4. 1
20. 5
4. 1
23. 4
11.3
100. 0 100. 0 100. 0 100. 0 100. 0
Total
MORTGAGE RECORDINGS—Another
October 1946
M a y Aug.
Savings and loan associationsInsurance companiesBanks, t r u s t companies
Mutual savings banks _
Individuals 1
Others
Total
_.
Cumulative
Percent
1946
change
(8
from
months)
1945
$310, 723 + 7 1 . 5 $2,297,840
46, 527 + 128.5 291, 472
273,
53,
184,
131,
093
616
005
257
+ 1 9 2 . 5 1, 698,
+ 190.0 341,
+ 5 3 . 3 1, 353,
+ 134.3 785,
266
753
715
333
Percent
of
total
34.0
4. 3
25. 1
5.0
20.0
11.6
999, 221 + 104.'2 6, 768, 379 100.0
23
F H L B SYSTEM—Outstanding
advances up $12 million
Reversing the July decline, a $12-million increase during August brought the balance of
Federal Home Loan Bank advances outstanding
at the end of the month to $214,458,000, or $25
million more than the previous August high registered in 1938. All Bank Districts, except
Chicago and San Francisco, reported an increase.
This upward trend continued into September, and
near the end of the month the balance stood at
$223 million, topping the previous all-time high
shown at the end of 1941.
Reflecting the increased tempo of current lending by member institutions, total advances of
$25,639,000 made by the 11 F H L Banks during
the reporting month were over two and one-half
times greater than those of August 1945. The
$7-million increase over July advances was the
result of a gain in 10 Bank Districts, Boston being
the only exception. The Little Rock and Topeka
Banks reported the least proportionate increases
(up less than 15 percent), while in Indianapolis and
San Francisco, advances made to members during
August more than doubled those of the previous
month.
Repayments, on the other hand, were the lowest
in any August since 1941, as well as being the
smallest of any 1946 month to date. Totaling
$13,208,000, they were 30 percent less than in
August 1945 and 32 percent below those of July
this year. Only the Boston and Chicago Banks
ran counter to this July-August decline in repayments.
[TABLE 12.]
INSURED ASSOCIATIONS
Lending
up fractionally
The 2,495 associations insured by the Federal
Savings and Loan Insurance Corporation continued to grow at a substantial rate during
August, a 1-percent expansion during the month
boosting total resources to more than $6,916,000,000. Since August last year, resources of these
institutions have increased $1,250,000,000.
As was true for uninsured institutions, the net
inflow of savings funds into insured associations
was somewhat less in August than in July—
$67,000,000 compared with $72,000,000. During
August 1945, net additions to share capital accounts approximated $73,000,000. Withdrawals
24
were equal to 68 percent of new investments—
15 points higher than in the same 1945 month.
In contrast with this drop in new share capital
receipts, new mortgage lending activity of insured
institutions continued at a near record level. Up
fractionally from July, the $255,000,000 of loans
made during August represented an increase of
95 percent over lending in the same month of
last year. [TABLE 13.]
SHARE CAPITAL—Net inflow
dropped below 1945 level
Contrary to the usual July-to-August increase,
the net inflow of savings funds into savings and
loan associations dropped off during August
of this year. In addition to falling 8 percent
short of the July figure, net share capital receipts
during August ($78,000,000) were 15 percent less
than in the same month last year.
I t can hardly be concluded on the basis of
one month's experience that the upward trend
in net savings receipts has been reversed. Granting this, when considered in the light of the U. S.
Department of Commerce estimate that the
annual rate of savings by individuals has been cut
almost in half since last year, the August decline
in net savings receipts of savings and loan associations may well foretell at least a leveling off of
the share capital growth curve.
Despite the contra-seasonal movement in August, savings and loan associations were able to
expand their share capital accounts more during
the first eight months of this year than in any
comparable period for which data are available.
This record growth in share capital, however, has
fallen considerably short of that registered in the
mortgage
portfolios
of
these
institutions.
[TABLE
14.]
Amendments
(Continued from p. 19)
(d). Participation of interested persons in a proposed rule, regulation or
amendment. At any time within thirty days after publication in the
Federal Register of general notice of a proposed rule, regulation or amendment as prescribed in paragraph (c) hereof, interested persons may participate in the making of such a proposed rule, regulation or amendment
through the submission of written data, views, or arguments thereon
delivered within the prescribed time to the Secretary to the Federal Savings and Loan Insurance Corporation, 101 Indiana Avenue, N. W.,
Washington, D. C. Interested persons may alslo petition for the issuance, amendment, or repeal of a rule, regulation or amendment and
deliver any such petition to the Secretary to said Corporation at the
address given herein.
Federal Home Loan Bank Review
(e). Hearings on rules, regulations or amendments. After receipt of
written requests therefor to the Secretary of the Federal Savings and Loan
Insurance Corporation of at least seven members of the Federal Savings
and Loan Advisory Council, or of at least fifty insured institutions (accompanied by certified resolutions of the boards of directors thereof), said
Corporation will fix a time and place for a hearing on a proposed rule,
regulation or amendment or upon an existing rule, regulation or amendment to which petitioners object. The Secretary to said Corporation
will give written notice of the time and place of such hearing to the members of the Federal Savings and Loan Advisory Council, and to each of
the insured institutions requesting such hearing. If such a request for
such hearing has been received before thirty days have elapsed from the
date general notice of a proposed rule, regulation or amendment was published in the Federal Register, the Corporation will not take final action
upon such proposal prior to such hearing. The filing of a request for a
hearing upon an existing rule, regulation or amendment to which petitioners object shall not suspend the operation of such rule, regulation or
amendment. Any interested person, institution or association may appear
in person at such hearing before said Corporation or may be represented
at such hearing by any of its directors, officers, employees, agents or attorneys-at-law; and may offer evidence and examine witnesses.
(f). Recommendations and representations at hearings by persons other
than those requesting hearing. No hearing upon a proposed rule, regulation
or amendment, or existing rule, regulation or amendment to which the
petitioners object will be confined to persons requesting such hearing;
but each such hearing will be open to representatives of any insured institution. Recommendations of other institutions that may be affected,
or from an organized trade association, may be filed with the Secretary
to said Corporation either prior to or during any hearing, and such institutions or associations may appear in person at such hearing before said
Corporation or may be represented at such hearing by any of its directors,
officers, employees, agents, or attorneys-at-law; and be entitled to be
heard.
301.23 Publication of rules and regulations for insurance of accounts.
There shall be published in the Federal Home Loan Bank Review, in the
issue immediately following the filing for publication thereof in the Federal
Register (pursuant to the Federal Register Act, 49 Stat. 500; 44 U. S. C ,
Sup. 301-314, as now or hereafter amended, and regulations prescribed
by the Administrative Committee of the Federal Register, and approved
by the President, under said Act, and the Administrative Procedure
Act, approved June 11, 1946) all rules and regulations issued by the Federal
Savings and Loan Insurance Corporation pursuant to the authority contained in Title IV of the National Housing Act, as now or hereafter
amended, and the General Manager of the Corporation shall cause a copy
of each such rule or regulation to be distributed to each insured institution.
He shall have available additional copies for distribution upon request
therefor.
I P CHANGES I P
August 1-August 3 1 , 1946
Key to changes
* Admission to membership in Bank System
** Termination of membership in Bank System
# Federal charter granted
## Federal charter canceled
0 Insurance certificate granted
00 Insurance certificate canceled
NEW YORK DISTRICT
N E W JERSEY:
Hammonton:
0Workingmen's Savings and Loan Association, 235 Bellevue Avenue.
N E W YORK:
Tuckahoe:
*0Tuckahoe Savings and Loan Association, 62 Main Street.
PITTSBURGH DISTRICT
PENNSYLVANIA:
Philadelphia:
**David Smyth Building and Loan Association, 1626 Arch Street.
WINSTON-SALEM DISTRICT
ALABAMA:
Montgomery:
**A11 States Life Insurance Company, 116 Catoma Street.
FLORIDA :
Jacksonville:
**Gulf Life Insurance Company, Greenleaf Building.
NORTH CAROLINA:
Rockingham:
**Richmond County Building and Loan Association, 212 East Washington Street.
CINCINNATI DISTRICT
KENTUCKY:
Somerset:
**Somerset Federal Savings and Loan Association, First National Bank
Building.
OHIO:
FSLIC
Bulletin N o . 33
Amendment to Rules and Regulations for Insurance of A c counts relating to the status of previously published rules and
regulations.
(Adopted September 9, 1946; effective upon
filing with The Federal Register on September 10,
1946.)
The Rules and Regulations for Insurance of
Accounts have been amended by the addition of
a new paragraph to Section 301.26. The new section now reads as follows:
301.26. Material incorporated into rules and regulations.
Material now or hereafter filed by the Federal Home Loan Bank
Administration, Federal Savings and Loan Insurance Corporation,
and Home Owners' Loan Corporation for publication in the Federal
Register as required by the Federal Register Act (49 Stat. 500, 44 U. S. C.
Sup. Ch. 8A) or by Sections 3 and 4 of the Administrative Procedure
Act, approved June 11, 1946, (Pub. Law 404, 79th Cong.; 60 Stat. 237),
is hereby made a part of these rules and regulations insofar as the same
is applicable to the Federal Savings and Loan Insurance Corporation,
and to the same extent as though published in these rules and regulations.
October 1946
Cincinnati:
**City Hall Loan and Building Company, 1569 Central Avenue.
Jackson:
*The Jackson Building, Loan and Savings Company, 213 Main StreetLima:
0The South Side Building and Loan Association, 128 West High Street
INDIANAPOLIS DISTRICT
MICHIGAN:
Sault Ste. Marie:
###Sault Ste Marie Federal Savings and Loan Association, 511 Centra!
Savings Bank Building.
CHICAGO DISTRICT
ILLINOIS:
Chicago:
**Monarch Building and Loan Association, 4527 West Cermak Road.
*Roseland Standard Building and Loan Association, 11300 South
Michigan Avenue.
SAN FRANCISCO DISTRICT
CALIFORNIA:
Escondido:
##Escondido Federal Savings and Loan Association, 111 North Broadway.
WASHINGTON:
Yakima:
#Home Federal Savings and Loan Association of Yakima, 214 West
Yakima Avenue.
25
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 of new family dwelling units provided
in all urban areas in August 1946 by Federal Home Loan Bank District and by state
[Source: U . S . D e p a r t m e n t of L a b o r ]
P r i v a t e residential construction
Public residential c o n s t r u c t i o n
T o t a l u r b a n residential
construction
Federal H o m e Loan B a n k
District and state
1- a n d 2-family dwellings
3- a n d more-family dwellings
Aug. 1946P
July 1946r A u g . 1945
Aug.l946P July 1946r Aug. 1945 Aug.l946P| July 1946' Aug. 1945 Aug.l946p July 1946r Aug. 1945
UN.:TED STATES
Boston
..
56
19
199
18
80
229
112
806
64
245
15
218
106
912
13
136
21
56
19
199
18
65
66
623 1
15
15
743 1
2,429
2,125
551
544
684
870
1,559
595
1,530
184
367
.80
464
1,506
376
79
60
1,246
200 j
15
307
1,592
60
82
1,510
60
450 |
132 1
3,705 1
47
118
36
212
17
30
118
20
16
32
180
210
288
1,856
120
328
30
18
1,241
19
988
234
5,373
6,414
1,731
4,812
4,133
1,521
273
425
892
214
1,507
694
466
730
139
731
976
1,755 !
1,125
497
848
354
528
287
221
402
244
40
244
61
232
768
113
1.391
676
457
685
139
583
618
186
991
560
435
664
243
436
287
89
362
220
40
240
61
222
4
101
86
63
30
145
148
31
10
8
21
32
3,126
3,705
954
2,652
2,871
918
217
192
2,023
911
489
2,491
725
51
652
251
192
1,800
660
407
1,883
581
35
632
251
__.
3,676
3,611
970
2,858
2,542
954
_
1,625
2,051
1,814
1,797
246
724
1,122
1,736
945
1,597
246
708
2,665
4,503
1,306
2,262
2, 582
1,741
924
2,747
1,756
961
345
1.534
'728
1,837
745
4,184
753
2,136
802 1
222
271
4, 882
764
84
349
257
35
39 J
2,699
629
1,186
576
154
2,369
632
872
569
167
129
5, 424
363
497
657
248
3,659 1
5, 653
291 1
601
542
272
3,947 |
1,826
148
128
134
21
1,395 1
4, 866
343
497
238
248
4, 647
291
562
349
272
3, m |
1,842
555
468
301
2,031
621
390
463
_.
. .
Indiana
__
.
__ _ _
.
1
Iowa
_ _
Minnesota
Missouri
_
North Dakota
South Dakota
_
|
_
_
___ _
_ _
1
_
1
518 1
9,010
240
6, 530
170
159
69
565
387
850
40
1, 766
1, 320
1,090
410
296
557 1
9,833
115
6, 778
297
313
106
579
684
848
113 1
p Preliminary.
480
160
123
77
120 1
3,419
55
2, 661
67
72
52
215
104
176
17
154 |
3,540 |
1, 733 [
510
468
245
380
40
640
24
100
36
3,837
15
425
54
32
47 !
144
1,220
128
4
7
494
54 1
12,392 1
132
457
92
1,443
230
_
21
21
5
4,174
331 I
7,643 1
25
1,765 1
Kentucky . . . .
Ohio.
Tennessee __
_.
Indianapolis.
146
1,552
37
236
57
1,083 j
39
1,036
281
Cincinnati _ _ _ _
25
1,356
S o u t h Carolina
..
Virginia
._ __
S a n Francisco
Arizona _
California
Idaho
Montana
Nevada
Oregon __
Utah _
Washington
W r yoming .
3,857
71
3,490 1
A l a b a m a _._
_
D i s t r i c t of C o l u m b i a - - _ ._!
Florida
.
. ___
Georgia
__.
_.
Maryland- .
. . _ _
Oklahoma
2,743
357
5,728 1
"Winston-Salem
Topeka
11,832
1,406
1,082
Delaware. .
.
Pennsylvania _
West Virginia. _ _ _ _ _ _
Little Rock
Arkansas
Louisiana
Mississippi
N e w Mexico
Texas
32,973 1
1,471
372 1
371 1
...
.
_
34,643
372
6,810
Pittsburgh.. _ _ _ _
Illinois
Wisconsin
13,059
2,651
15 1
_
N e w Jersey
N e w York._ . . .
Chicago .
49,222
1,563
229
112
893
64
250
Connecticut
__ _ _
Maine
. _ .
Massachusetts
_ _
New Hampshire. _ . _ . _
Rhode Island
.
Vermont
I
N e w York
45,029
132
40
24
4
35
10
85
616
534
52
176
90
60
524
36
257
310
213
4
24
476
24
16
20
10
247
58
132
120
9
50
16
809
1,019
9
4
46
16
503
306
865
154
1,019
135
183
287
268
1.738
691
328
59
76
116
67
270
17
148
120
794
944
764
84
349
257
35
39
213
223
10
184
4
15
10
150
1,272
124
940
42
64
102
2,290
1,134
438
371
243
104
1, 751
124
830
75
434
20
176
148
128
129
21
1,325
25
39
17
5
394
176
99
774
70
20
53
45
115
83
32
12
12
56
273
56
273
365
124
133
1, 706 1
84
935
96
208
36
510
1,643
538
358
190
557
468
148
123
77
120
7, 620
106
5,497
170
159
69
420
345
814
40
7,149
111
5,102
195
100
106
447
369
654
65
3,153
55
2, 447
67
68
52
167
104
176
17
9
10
1
1
63
8
1,025
10
900
57
22
36
978
4
7416
182
5
4
178
132
7
83
88
20
48
308
111
48
••Revised.
Federal Home Loan Bank Review
Table 2 . — B U I L D I N G ACTIVITY—Estimated number and valuation of new family dwelling units
[Source: U . S. D e p a r t m e n t of L a b o r .
Dollar a m o u n t s are s h o w n in t h o u s a n d s ]
Permit valuation
N u m b e r of family dwelling u n i t s provided
P r i v a t e construction
Private construction
Period
Total
construction
Total
1-family
2-family
3- a n d
morefamily
Public
construction
Total
construction
1-family
2-family
69, 631 $1, 788, 728 $1, 558, 943 $1,388,866
Total
3- a n d
morefamily
Public
construction
Nonfarm
$229, 785
512, 547
442, 916
378,863
20,082
43, 971
$48, 701
$121,376
69, 750
61,162
55, 289
2,590
3,283
8,588
251, 358
218,970
204,489
6,571
7,910
32,388
133,400
117, 082
102,886
5,577
8,619
16,318
431, 512
387, 527
344,077
17, 320
26,130
43,985
20, 400
21, 800
29,800
31, 400
29,100
20,154
21,800
29, 775
31, 400
29,100
18,364
19,665
26,696
28, 229
25,116
668
888
929
1,146
1,426
1,122
1,247
2,150
2,025
2,558
246
25
74, 903
80, 094
124, 532
129,195
127, 065
74,162
80,094
124, 294
129,195
127, 065
67,887
72, 280
111,861
117,642
112,467
2,244
3,306
3,779
4,379
4,912
4,031
4,508
8,654
7,174
9,686
238
545,800
478, 509
429, 797
18, 335
30,377
67, 291
2, 295, 323
2,086, 751 1, 898, 539
75,092
113,120
208, 572
43, 900
48, 500
, 83,600
81, 000
74,300
68,000
76, 700
69, 800
39,093
43, 379
76,949
70,461
68, 826
58, 371
60,601
60, 829
34, 764
38, 726
68, 408
64,165
60,617
52, 781
54,477
55,859
1,395
1,889
2,783
2,671
3,417
2,226
2,027
1,927
2,934
2,764
5,758
3,625
4, 792
3, 364
4,097
3, 043
4,807
5,121
6,651
10, 539
5,474
9,629
16,099
8,971
182, 916
205, 706
367, 766
335, 517
307, 235
286, 502
305, 932
303, 749
162, 304
185, 048
352, 956
310, 847
296,138
255, 786
256,822
266, 850
147, 800
169, 036
316, 924
286,437
265, 321
231, 938
235, 336
245, 747
5,222
6,969
12, 098
10, 991
13, 754
9,531
8,217
8, 310
9,282
9,043
23, 934
13, 419
17, 063
14,317
13, 269
12,793
20,612
20, 658
14, 810
24, 670
11,097
30, 716
49,110
36, 899
318, 341
267, 520
211, 862
16, 067
39, 591
50,821
1,169, 351
1, 000, 332
846, 721
41,184
112,427
169,019
41, 622
34, 029
29, 356
1,977
2, 696
7,593
160, 324
131, 220
119,136
5,373
6,711
29,104
1945: J a n u a r y - A u g u s t
87,012
76, 924
63,431
5,236
8, 257
10,088
314,317
286,989
245, 302
16, 571
25,116
27, 328
August
_ September
October
November _
December
13, 059
14,619
19, 496
20, 417
19, 256
12, 915
14,619
19,496
20,417
19, 256
11, 206
12, 567
16, 582
17, 421
15, 494
626
845
857
1,069
1,241
1,083
1, 207
2,057
1, 927
2,521
144
54, 800
60,133
91,114
93, 953
95, 040
54, 262
60,133
91,114
93, 953
95, 040
48,199
52, 537
79,194
82, 944
80,639
2,138
3,197
3, 551
4,134
4,275
360, 366
303,942
257, 746
17, 475
28, 721
56,424
1, 653, 283
1,482, 097' 1,301, 998
72, 311
107, 788
171,187
21, 786
24,072
41, 785
39, 000
35,824
31, 372
31,071
32,836
1,309
1,792
2,683
2,571
3,267
2,144
1,902
1,807
2,823
2,639
5,598
3,425
4, 492
3,144
3,857
2,743
4,807
4,976
5,936
8,864
4,633
7,173
12, 392
7,643
139, 598
151, 478
266,133
240, 969
220, 656
201, 281
211, 708
221, 460
4,947
6,659
11, 749
10,688
13, 304
9,172
7,842
7,950
8,941
8,659
23,400
12, 755
16,109
13,617
12, 489
11,818
20, 612
19, 592
13, 596
21, 557
9,336
18, 538
34,315
33, 641
1941: J a n u a r y - A u g u s t
August .
__ _ . _-_
1945: J a n u a r y - A u g u s t
Augusts
_
______
October, _
_____
1946: J a n u a r y - A u g u s t
January
February
March__ __ _
April
May
June__ _ _ _
Julyr__._ __._
August P .
_ __
__ _
__ __
-__ -_
741
Urban
1941: J a n u a r y - A u g u s t
August-.
1946: J a n u a r y - A u g u s t
January
February
March, _
April
_
May__ _
June
July
A u g u s t P__
_ __
_
__
30, 725
33, 479
56,002
53, 860
48, 216
43, 833
49, 222
45, 029
_____
_
25,
28,
50,
44,
43,
36,
36,
37,
918
503
066
996
583
660
830
386
118, 986
131, 886
252, 537
219, 412
211, 320
182, 743
177, 394
187, 819
r Revised.
105,098
116, 568
217, 388
195, 969
181,907
159,954
157, 063
168, 051
538
3,925
4,399
8,369
6,875 !
10,126
p Preliminary.
Table 3 . — B U I L D I N G COSTS—Index of wholesale prices of building materials
[Source: U. 8. Department of Labor.
All b u i l d i n g
materials
Period
Brick a n d
tile
1935-1939=100; converted from 1926 base]
Cement
Lumber
Paint and
paint materials
Plumbing
and heating
Structural
steel
Other
1944: A u g u s t . .
129.5
110.8
105.8
171.9
129.7
121.4
103. 5
111.6
1945: A u g u s t
September- October..
November,
December
131.5
131.8
132.1
132.5
133.4
122.8
123.7
126.8
128.4
128.4
109.1
109.3
109.6
109.9
110.3
172.9
172.6
172.8
173. 2
175.7
131.9
132.3
132.3
132.4
132.5
122.7
124.8
124.8
124.8
124.8
103.5
103.5
103.5
103.5
103.5
112.8
113.0
113.1
114.0
114.5
134.0
135.0
139.5
141.3
142. 7
145.1
147.5
148.2
128. 7128.7
129.2
132.0
132.6
133.5
134.8
138.7
111.0
111.4
112.3
112.4
112.6
112.6
114.1
116.1
176. 5
178.3
186.6
190.9
192.1
196.0
197.4
197.8
132.5
132.5
132.5
132.8
133.0
133. 5
141.3
140.0
124.8
124.9
124.9
132.4
132.4
139.3
139.3
139.7
103.5
109.7
115.9
115.9
115.9
115.9
115.9
115.9
115.3
115.9
121.4
122.0
125.1
128.0
129.7
130.7
-0.9
+6.1
+0.3
+13.9
0.0
+12.0
+0.8
+15.9
1946: J a n u a r y
February
March
April
May_
June_ _ _
July
August
______
_ _ __ _ _ _
_
..__
_
_
_ _
_
_
__
P e r c e n t change:
A u g u s t 1946-July 1946.
A u g u s t 1946-August 1945
October 1946
_____
_
+0.5
+12.7
+2.9
+12.9
.
+1.8
+6.4
+0.2
+14.4
27
Table 4 . — B U I L D I N G COSTS—Index of building costs for the standard house
[Source: National Housing Agency. Average month of 1935-1939=100]
1945
1946
E l e m e n t of cost
August
M a t e r i a l . _. . . .
Labor
Total
July
June
March
April
May
February
January
December
November
October
September
August
146.1
157. 2
143.7
155. 6
141.6
153.8
139.2
152.5
138.0
150.6
137.1
148.9
136. 3
148.5
135.5
147.9
135.2
147. 5
135.0
147.3
134.6
146.3
134.1
146.0
133. 9
144. 5
149.8
147.7
145.7
143.6
142.1
141.0
140.3
139.7
139.3
139.1
138.5
138.0
137.4
Table 5 . — B U I L D I N G COSTS—Index of building costs in representative cities x
[Source: N a t i o n a l H o u s i n g A g e n c y .
A v erage m o n t h of 1935-1939 = 100]
1945
1946
1944
1943
1942
1941
1940
Sept.
Sept.
Sept.
Sept.
Sept.
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
Sept.
Boston:
Hartford, Connecticut
Portland, M a i n e . Boston, Massachusetts
.__
Manchester, New Hampshire
_ _.
P r o v i d e n c e , R h o d e Island-_ ___
_*_
Topeka:
D e n v e r , Colorado._
Wichita, Kansas
Omaha, Nebraska
_ _
Oklahoma City, Oklahoma
1
137.3
152.5
133.6
127.1
142.7
135.2
151.4
133.2
124.2
139.7
130.3
140.9
128.6
115.4
132. 3
128.5
124.8
125. 8
108.7
120.7
123.7
114.3
116.7
103.7
116.1
103.2
99.2
104.5
98. 1
106.9
135.6
159.2
158. 0
162.7
145.8
132.0
153.1
153.5
156.8
136.7
127.6
150.4
151.7
155.8
135.9
127.4
144.5
148.3
152.7
133.8
128.4
142.8
143.8
148.8
130.2
121.6
134.5
134.8
142.7
123.0
115.9
126.7
122.7
128.7
116.0
113.5
116. 1
117.4
119.5
109.7
98.6
105.2
100.0
106. 5
96.8
130.2
159.6
124.8
155.1
121.8
148.1
117.2
146.9
115.3
145.8
112.6
142.1
110.3
133.9
108.9
131.6
103.5
116.3
99.0
109.1
141.8
144.1
152. 3
175.1
136.5
140.2
142.4
165.2
132.1
138.1
140.5
162.3
129.1
137.3
139.9
153.3
127.3
136.8
137.3
151.5
122.8
135.7
134.0
149.4
115.9
129.1
126.4
144.3
113.4
126. 5
126.5
131.8
109.2
117.3
117.7
125.9
96.8
107. 2
105.6
107.3
139.9
169.7
160.8
179.6
151.8
...
_.
._ .
. _ _ - _______
__ _
. _
Sept.
137.9
153.5
134.2
128.0
146.0
144.1
164.8
140.8
132.9
151.4
- _
_
Dec.
137.5
153. 8
137.9
129.5
147.6
147.4
169.9
147.1
136.9
159.4
Winston-Salem:
Birmingham, Alabama
•—* W a s h i n g t o n , D i s t r i c t of C o l u m b i a - _.
A t l a n t a , Georgia
__
Baltimore, Maryland
R i c h m o n d , V i r g i n i a - . _.
_
Chicago:
Chicago, Illinois
M i l w a u k e e , Wisconsin
Mar.
June
1
For complete explanation of these data, see Statistical Supplement to April 1946 REVIEW.
Table 6 . — M O R T G A G E LENDING—Estimated volume of new home mortgage loans by a l l
savings and loan associations, by purpose and class of association
[Thousands of dollars]
Class of association
P u r p o s e of loans
Period
Reconditioning
L o a n s for
all o t h e r
purposes
Total
loans
State
members
Nonmembers
Construction
Home purchase
$95, 243
$1, 064, 017
$163, 813
$30, 751
$100, 228
$1, 454, 052
$669, 433
$648, 670
$135, 949
73, 346
688, 982
107, 245
20, 258
65, 026
954, 857
437, 415
426, 401
91,041
7,589
105, 050
14,152
3,067
8,816
138, 674
64, 400
61, 377
12,897
180, 550
1, 357, 555
196, 011
40, 736
137,826
1, 912, 678
911, 671
836, 874
164,133
January-August
92, 787
843, 986
123, 215
23, 454
84, 555
1,167, 997
550, 906
513,718
103, 373
August,
,
S e p t e m b e r . _. - _
October. _
N ovember
December
20, 730
16, 375
23, 985
24, 481
22, 922
120, 557
113,103
135, 224
135, 685
129, 557
17,146
16, 786
18, 751
19,411
17,848
3,971
3,980
4,857
4,487
3,958
11, 259
12,189
13, 562
14, 095
13, 425
173, 663
162, 433
196, 379
198,159
187, 710
82,197
77, 321
95,815
96, 709
90, 920
75, 644
70, 642
84, 819
85, 804
81, 891
15, 822
14, 470
15,745
15,646
14,899
397, 837
1, 628, 639
180, 572
50, 401
165, 876
2, 423, 325
1, 236,178
1, 014, 514
172, 633.
1944
January-August
August.
1945
January-AugustJanuary
February
March
April
MayJune
July
_.
August
28
_
_
_
..
1946
.
.
_
. - .
30, 807
30,866
45, 391
53, 202
62,189
56, 297
59, 708
59, 377
145, 342
154, 219
202, 995
235, 877
243, 458
218, 575
216, 369
211, 804
Refinancing
21, 372
19, 801
24, 244
24,882
24, 451
22, 402
21, 388
22, 032
3,803
4,217
6,198
6,796
6,954
6,625
7,327
8,481
15, 518
16, 416
21, 335
22, 242
24, 246
22, 098
21, 256
22, 765
Federals
216, 842
225, 519
300,163
342,999
361, 298
325, 997
326, 048
324, 459
109,146
111, 927
155, 960
174, 468
186, 282
107, 552
165,031
165, 812
92,103
97, 305
123, 945
143,114
150,161
136, 296
136, 966 |
134, 624
15, 593
16, 287
20, 258
25, 417
24, 855
22,149
24,051
24, 023
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
AUGUST 1946
[Thousands of dollars]
[Dollar amounts are shown in thousands]
N e w loans
Federal H o m e Loan
Bank District a n d
class of associaAugust
August July
tion
1945
1946
1946
1945
1946
Percent
change
$324,459 £326,048 $173, 663 $2,423,325 $1,167,997 +107. 5
U N I T E D STATES
_. 165,812 165,031
134, 624 136,966
... 24,023 24,051
Federal
__
State member
Nonmember
Federal _ _
State member
Nonmember_,
_ -
Federal
State member
Nonmember
Pittsburgh
State member
Nonmember-.
-
Winston-Salem
Federal
State member
Nonmember
_
Federal
State member
Nonmember. _
Federal
State member
Nonmember--
.
Federal
State m e m b e r . . .
Nonmember,,
Des Moines _
C u m u l a t i v e new loans
(8 m o n t h s )
.
_ .
82,197 1, 236,178
75, 644 1,014, 514
15,822
172,633
550,906 +124. 4
513,718 + 9 7 . 5
103,373 + 6 7 . 0
78, 770 + 1 0 1 . 9
U N I T E D S T A T E S , J $310,
Boston.
__
Connecticut
Maine
Massachusetts,
New
Hampshire
R h o d e I s l a n d __
Vermont,.. .
L i t t l e Rock
Federal
State member
Nonmember
_
Topeka . . . .
Federal
State member
Nonmember
S a n Francisco
Federal
. .
State m e m b e r , . .
Nonmember
October 1946
,
Banks
and
trust
companies
Mu- 1
tual
Indisavings viduals
banks
Other
mortgagees
Total
723 $46, 527 $273, 093 $53, 616 $184,005 $131, 257 $999, 221
25,463
761
11,257 22, 475
9,017
4,854
73,827
3, 4921
862
18, 528
466
17
234
4,990 4, 445
509 1, 189
4, 283 14, 185
3, 099
591
3,973
1,814|
73
2, 538
18, 306
3 241
43, 741
657
1,648
276
44
1,109
990
557
486
607
261
60
344
25
2,602
4,688
1,249
27, 688
3, 022
22, 794 26, 458
23, 602
6, 368
21,320
1,1431
1, 879
7,1.42 1, 659
15,652 24, 799
5,9051
17,697
3,338
7, 689
25, 555
89, 036
290
1,055
130
22, 276
23,858
11,461
159,046
9, 589
9,976
2,711
9,897
11,418
2,543
4, 760
5,081
1, 620
70, 512
72,862
15, 672
33,341
38,061
17,143
248, 248
114,069 +117. 6
22,936
2,957
25, 2691
854^
10,669
7, 227
69,912
14,494
14,478
4,369
17, 628
15, 526
4,907
6,181
8,266
2,696
106, 259
108, 265
33,724
40,188 +164. 4
54, 766 + 9 7 . 7
19,115 + 7 6 . 4
Delaware,. . . .
Pennsylvania..
West Virginia..
332
20, 608
1,996
162
2,169
626
320
22, 158
2,791
134
720
383
9,169
1,117
126
6,821!
280:
1,457
61, 645
6, 810
22,644
23,415
13,881
182,901
97,009 + 8 8 . 5
W i n s t o n - S a l e m ._
29,016
8,133
13, 028
495
26,441
10, 278
87, 391
Alabama, , .
D i s t r i c t of Col u m b i a , -, -_
Florida
Georgia
Maryland
. .
N o r t h Carolina
S o u t h CarolinaVirginia
1,458
702
1,159
1,316
1,565
6,200
4,161
6,075
3,129
7,673
2,442
602
3,476
642
4,000
278
476
789
286
960
1,177
2,016
2,117
2,862
823
788
2,086
495
3,886
9,174
2,054
2,377
1,723
1,012
4,899
996
3,625
1,333
501
778
455
1,025
10,862
24,890
8,911
14, 384
6,555
3,143
12,446
59, 529
3,874
28, 758
1,284
11,054
5,213
52, 655
1,661
641
2,082
1,151
2,667
23, 286
2,805
1,284
749
8,756
1, 549
330
4,638
6,330
9,600
92, 701
13,496
21, 029
4,429
25, 255
19
6,360
7,002
64, 094
11, 538
9,491
1,983
2,446
9,141
16,114
19
2,145
4,215
1,943
5,059
26, 769
37, 325
------
37, 088
2,305
16, 616
61
11, 249
16, 255
83 574
Illinois
..
Wisconsin . _.
28,114
8,974
1,472
833
10,771
5,845
61
6,987
4,262
15, 039
1,216
62, 383
21,191
18, 620
3,774
16, 747
612
8,768
10, 295
58, 816
4,195
7,937
5,354
742
392
534
1,074
2,054
72
40
4,472
4,568
7,160
249
298
1, 580
2,563
4, 218
201
206
891
3, 367
5,944
80
13
11 672
20,121
24, 730
1,344
949
..
16, 619
7,356
6,384
13,139
12, 455
55, 953
Arkansas
Louisiana, .
Mississippi
New Mexico...
Texas
1,081
5, 404
853
411
8, 870
641
730
451
8
5,526
961
449
712
177
4,085
663
2, 869
664
432
8, 511
156
1,496
487
21
10, 295
3, 502
10, 948
3,167
1,049
37, 287
15, 562
1,812
7,134
9,109
6, 720
40,337
2, 327
6, 111
1, 551
5, 573
306
328
442
736
1,778
2,787
694
1,875
4,804
1,076
713
2,516
1,863
1,233
197
3,427
11,078
11, 535
3,597
14,127
37,173
8,104
99,851
.
32, 437 + 1 1 7 . 4
36, 598 + 9 9 . 1
9,735 + 6 1 . 0
10,827
7,328
4,489
11,338
7,395
4,682
6,734
4,430
2,717
93, 443
57, 313
32,145
45,973 +103. 3
33, 467 + 7 1 . 3
17, 569 + 8 3 . 0
49,975
45, 679
22, 668
347, 030
144, 513 + 1 4 0 . 1
30,490
16,170
3,315
26,333
15,929
3,417
11,581
9,476
1,611
198,934
124,093
24, 003
76, 643 +159. 6
59,311 +109. 2
8,559 +180. 4
51,087
50, 603
28, 442
383,096
194,214 + 9 7 . 3
23, 463
25, 438
2,186
23,023
25, 257
2,323
12, 363
13,601
2,478
174,923
190,474
17, 699
83,389 +109. 8
97,173 + 9 6 . 0
13, 652 + 2 9 . 6
18,892
18,912
9,133
145, 245
64,672 +124. 6
11,341
7,112
439
11, 224
7,318
370
5,038
3, 757
338
84,839
56, 921
3,485
34, 706 +144. 5
27,059 +110. 4
2,907 + 1 9 . 9
34, 293
32, 531
19,545
251, 089
132, 649 + 8 9 . 3
15, 843
16, 744
1, 706
15,118
16, 021
1,392
8, 227
10, 018
1, 300
116,110
123,448
11,531
56, 223 +106. 5
66, 365 + 8 6 . 0
10, 061 + 1 4 . 6
19,017
19,920
11,303
148,143
69,867 +112. 0
10, 267
5,758
2, 992
11,133
6,385
2,402
5, 980
3, 983
1, 340
82, 416
47, 810
17, 917
35,851 +129. 9
24,819 + 9 2 . 6
9,197 + 9 4 . 8
17, 471
18,928
7, 746
128,361
55,303 + 1 3 2 . 1
7,711
9, 597
163
7,983
10, 802
143
3, 665
3, 985
96
60, 501
66, 621
1,239
27, 376 + 1 2 1 . 0
27,186 + 1 4 5 . 1
741 + 6 7 . 2
14,495
14, 495
8, 523
120, 416
59,140 + 1 0 3 . 6
8, 532
4, 460
1, 503
8,157
4,661
1, 677
4, 657
2, 346
1, 520
69,888
37, 237
13, 291
32,053 + 1 1 8 . 0
17, 095 + 1 1 7 . 8
9,992 + 3 3 . 0
40,968
39,646
23,818
309, 750
157, 791 + 9 6 . 3
23,255
17, 563
150
23,197
16, 254
195
13,011
10, 701 1
106
178,353
129,470
1, 927
86, 067 +107. 2
69,879 + 8 5 . 3
1, 845 + 4 . 4
New York _ . . .
N e w Jersey
New York
Pittsburgh
Cincinnati,
.
Kentucky
Ohio
Tennessee
...
Indianapolis
Indiana,,.
Michigan
Chicago
Des M o i n e s , _
..
Minnesota
Missouri,
North Dakota,
South Dakota, ,
Little R o c k . . .
Federal
State m e m b e r , , .
Nonmember
Savings I n s u r and
ance
loan
comassocia- panies
tions
Federal Home
Loan B a n k
District and
state
Topeka
Colorado
Kansas
Nebraska
Oklahoma
...
S a n Francisco
Arizona
._
California
Idaho
-.
Montana _ ..
Nevada,
Oregon
Utah.
Washington
W y o m i n g , .__
1,144
118
23,680 1 6,328
66
1, 259
53
542
29
258
597
2,649
314
1,117
525
6,034
74
490
1,588
84, ol7
564
556
388
1,959
2,050
7, 384
545
612
1, 358
170
I, 1.88
54, 597
11,027 114, 591
11,298 115,797
33,846 234,929
2,425
5,555
280
44,949 25, 555 185,329
2, 656
655 !
112
1, 745
552
42
1, 335
592
68
9,925
2, 746
1, 804
4, 601
359
761
1, 893
5,155 22,179
1. 604
426
69
29
Table 9 . — M O R T G A G E RECORDINGS—Estimated volume of nonfarm mortgages recorded
[Dollar a m o u n t s are s h o w n in t h o u s a n d s ]
Savings a n d loan
associations
Banks and trust
companies
Insurance
companies
M u t u a l savings
banks
O t h e r mortagees
Individuals
All mortgagees
Period
Total
Percent
Total
Percent
Percent
Total
Total
Percent
Total
Percent
Total
Percent
Percent
Total
$2,009,707
35.7
$244,432
4.4 $1,091,021
19.4
$216,982
3.9 $1,402,103
24.9
$658,945
11.7
$5, 623,190
100.0
January-August
1. 230, 610
181,156
A u g u s t __ __
September...
172, 551
October
207,006
November.
_ . . 205,100
December
194,440
35.0
37.0
37.2
37.2
36.6
36.9
158,095
20,359
18, 935
22, 229
23,061
22,112
4.5
663, 707
4.2
93, 358
4.1 • 91,661
4.0
110,429
4.1
114, 636
4.2
110,588
18.9
19.1
19.7
19.9
20.5
21.0
126, 225
18,488
18,472
23,711
23,310
25, 264
3.6
3.8
4.0
4.3
4.1
4.8
910, 760
120,015
111,384
131, 590
130,986
117,383
25.9
24.5
24.0
23.7
23.4
22.2
426,139
56,013
51,154
60,928
63,087
57, 637
12.1
11.4
11.0
10.9
11.3
10.9
3, 515, 536
489,389
464,157
555,893
560,180
527,424
100.0
100.0
100.0
100.0
100.0
100.0
34.0
34.8
35.2
36.2
35.6
34.6
33.6
32.1
31.1
291,472
26, 936
26,099
31,083
33, 974
38,862
39,890
48,101
46, 527
4.3 1, 698, 266
139,126
4.2
140,890
4.2
180, 656
4.1
213,878
3.8
241,330
4.0
245, 624
4.3
263,669
4.9
273,093
4.7
25.1
21.9
22.8
23.6
24.1
25.0
26.8
26.9
27.3
341, 753
24,401
24, 973
33, 914
44,855
51,851
50,123
58,020
53, 616
5.0 1,353,715
151,601
3.9
140,477
4.0
162, 986
4.4
180,318
5.1
187,311
5.4
168,889
5.5
178,128
5.9
184,005
5.4
20.0
23.9
22.7
21.3
20.3
19.4
18.4
18.1
18.4
785,333
71, 633
68, 703
79, 926
98, 770
111,892
104, 662
118,490
131, 257
11.6
11.3
11.1
10.4
11.1
11.6
11.4
12.1
13.1
6, 768,379
634,117
618, 763
765,973
887, 266
964,438
917,414
981,187
999,221
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
1945_
1946
January-August
January
February
March
April _
May
June
July
August.. .
-.
2, 297,840
220,420
217, 621
277,408
315,471
333,192
308,226
314,779
310, 723
Table 1 0 — G l L E N D I N G — H o m e loans
/
Table 1 1 . — F H A — Home mortgages insured
[Dollar a m o u n t s are shown in thousands]
[ P r e m i u m p a y i n g ; t h o u s a n d s of dollarsl
T o t a l loans reported closed a n d
disbursed 2
Cumulative through
J u l y 19
J u l y 26
August 2
August 9
A u g u s t 16
A u g u s t 23
A u g u s t 30
September
September
September
September
N u m b e r of
applications a n d
reports
6...
13..
20.
27_
291, 571
305, 503
318, 905
331, 763
344. 561
357,510
371,142
380, 977
T i t l e V I (603)
Period
A m o u n t of
guaranty
a n n insurance
190, 630
200, 231
209, 960
220, 988
233, 354
245, 231
257,471
266, 741
$429, 938
454, 709
480, 241
510, 554
543, 883
575, 664
610,007
635,047
New
Principal
a m o u r t of
loan
$941, 379
994. 778
1.046, 197
1,107, 674
1.169, 751
1, 246, 274
1,316. 534
1, 369, 210
1, 584,444
303, 353
1
Records of V e t e r a n s A d m i n i s t r a t i o n .
2
T o t a l s do n o t include 70, 579 loans acted u p o n a n d a p p r o v e d for loan
closing. T h e i r dollar v o l u m e , $403,538,000, b r o u g h t t h e aggregate p r i n c i p a l
of G I h o m e loans to $1,897,982,000 on S e p t e m b e r 27.
Existing
New
Existing
1945: A u g u s t . . . .
September
October...
November
December.
$666
968
1,228
1,777
1.965
$17, 286
15,165
18, 606
18, 887
18, 051
$14, 606
12, 286
14, 645
10, 261
10,836
$386
347
608
518
547
1946: J a n u a r y . . .
February.
March
April
M a y . _____
J une
July
August
3, 095
3, 728
3,760
3, 570
4, 406
5,573
6, 374
5,668
24, 275
20, 006
24, 346
24,160
26, 389
31, 551
26, 956
20, 831
9,617
6,267
5,122
6,870
5,988
3,678
4,020
2,959
1, 676
1, 241
1,152
983
3, 712
1,012
572
960
i Figures represent gross insurance w r i t t e n d u r i n g t h e period a n d do not
t a k e account of principal r e p a y m e n t s on previously i n s u r e d loans.
Table 1 2 . — F H L B A N K S — L e n d i n g operations and principal assets and liabilities
[ T h o u s a n d s of dollars]
L e n d i n g operations,
A u g u s t 1946
P r i n c i p a l assets, A u g u s t 31, 1946
C a p i t a l a n d p r i n c i p a l liabilities,
A u g u s t 31, 1946
Federal H o m e Loan Bank
Advances
Repayments
Boston
N e w York
Pittsburgh
Winston-Salem
*" i n c i n n a t i
Indianapolis
Chicago
Des Moines...
Little Rock
Topeka
San Francisco
$1,817
2,281
2,333
5, 077
2,202
2,059
2,779
1,453
1,266
1,755
2,617
A u g u s t 1946 ( c o m b i n e d total)
25, 639
J u l y 1946
18, 247
19,516
9,794
18,951
A u g u s t 1945
' I n c l u d e s i n t e r b a n k deposits .
30
Advances
outstanding
906
662
940
818
386
4,211
558
897
151
2,802
2
Cash i
Governm e n t securities
Capital2
Debentures
Total
assets
A u g u s t 31,
Member
deposits
$15, 728
14,716
22, 856
24, 739
21,453
14,385
37,800
16,738
11,026
9,912
25,105
$1,669
1,051
1,472
2,022
1,989
1,884
5,250
832
1,095
2,395
3,386
$7, 483
29, 251
9,447
4,120
23,644
13,740
9,392
9,449
8, 620
8,043
23,085
$21, 035
29, 509
18, 532
20,336
29,187
15,868
25, 589
15,168
13, 226
11,490
27, 544
$2, 000
14,000
9,500
5,000
8,000
22, 500
11,000
7,500
6,000
16, 500
$941
15,730
1,324
131
13,119
6,260
4,468
940
102
1,455
7,679
$24,992
45, 261
33,909
30,985
47,351
30,166
52, 609
27,144
20,848
20, 455
51, 777
214, 458
23,045
146, 274
227, 484
102,000
52,149
385, 497
202, 027
26,392
153,007
226, 318
102,000
53, 278
382, 902
112, 451
19, 661
163, 527
215,128
32,000
46, 235
_ 297, 524
C a p i t a l stock, s u r p l u s a n d u n d i v i d e d profits.
Federal 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 g r e s s of institutions insured by the FSLIC
[Dollar a m o u n t s are shown in t h o u s a n d s ]
Number
of associations
Period a n d class
of association
Total
assets
P r i v a t e reGovernm e n t b o n d purchasable
holdings
capital
Government
share
capital
$4,913,879
4,981,869
5,055,073
5,109,101
5, 219,910
$23,378
23,367
23,367
23,366
23,366
N e t first
mortgages
held
Cash
$3,572,964
$303,195
$1, 607,844
3,763,128
307, 712
1,839,008
4,051,583
279, 543
1, 792,418
4, 519, 248
347, 362
1,641,628
2, 255, 283
178,411
1,067,837
2, 382,101
194,678
1, 213,609
2,571,919
169,884
1,175,285
2,886, 641
221,431
1,067, 943
Operations
Federal
Home
Loan
N e w priNew
Private
B a n k adv a t e inrepurvances m o r t g a g e
vestchases
loans
ments
Repurchase
ratio
ALL INSURED
$5,666,351
5, 725,962
5, 797, 238
5,878,098
6,148, 230
2,475
2,476
2,476
2,474
2,475
1945: A u g u s t
September
October
2,477
2,481
2,485
2,486
2,488
2,490
2,493
2,495
6,204,954
6,274,832
6.359,998
6,462,376
6, 592, 552
6,743,121
6,810,626 1
6,916,472
1945: A u g u s t _ . .
September
October
November
1,469
1,467
1,466
1,466
1,467
3,
3,
3,
3,
3,
1946: J a n u a r y . . .
February
March
April.__
MayJune
_
July...
1,467
1,468
1,469
1,469
1,471
1,472
1,473
1,473
3,955, 391
3, 999, 837
4,050,719
4,118,076
4, 204, 057
4, 311, 747
4, 344,421
4,411,389
1,006
1,009
1,010
1,008
1,008
2,071, 264
2,093, 765
2,120,837
2,145,608
2, 224, 729
1,010
1,013
1,016
1,017
1,017
1,018
1,020
1,022
2, 249, 563
2, 274,995
2, 309, 279
2, 344, 300
2, 388, 495
2, 431, 374
2, 466, 205
2, 505, 083
1946: J a n u a r y .
_!
M a r c h __
May
June
July ..
August..
$105,344
92, 618
79,497
88, 304
185, 210
$131, 239
122,098
150,000
151,335
144,664
$156,189
146,290
163,628 !
147,022
180, 352
5, 299, 668
5, 361, 314
5,432,080
5, 507,923
5, 589, 795
5, 724,893
5, 798, 380
5,869,338
20,165 1 163,559
19,374
19,373
19,373
19,358
19,358
16,832
16,306
154,835
144,111
145, 744
159,546
189,908
187,401
196,495
169,107
174,954
238, 268
268,705
285, 613
257,175
254,858
255, 273
3,137,136
3,182, 465
3. 231,187
3,271,317
3, 348, 567
18,069
18,058
18,058
18,058
18,058
81,805
71, 252
58, 694
62,153
137,839
3, 395,108
3, 435, 482
3,481,382
3,532,406
3, 586, 501
3, 677,643
3,716,445
3, 758,827
15, 250
14, 540
14,539
14, 539
14, 539
14,539
12, 380
11,956
124, 242
118, 501
109,213
106, 599
115,009
137, 605
134,376
142,018
1,776,743
1, 799,404
1,823,886
1,837,784
1,871, 343
5,309
5,309
5,309
5, 308
5, 308
23, 539
21, 366
20,803
26,151
47, 371
49,042
44,777
54,185
54,626 1
53, 744
1,904,560
1,925,832
1,950,698
1,975, 517
2,003. 294
2,047, 250
573, 685
1 2,081, 935
2,110, 511
4,915
4,834
4, 834
4, 834
4,819
4,819
4, 452
4, 350
39, 317
36, 334
34, 898
39,145
44, 537
52, 303
53, 025
54, 477
59,961
63,027
82, 308
94, 238
99, 331
89,623
89, 827
89,461
$83,357
77,855
91,668
92,650
71,777
53.4
53.2
56.0
63.0
39.8
283,487
182,679
198,176
198,896
196,973
219,825
296, 710
207, 782
205,537 1
122,099
129,573
123,265
116,370
86,017
224,686
140,849
72.5
66.8
65.4
62.0
59.1
39.1
75.7
67.8
82,197
77, 321
95,815
96, 709
90,920
102,190
96,180
108, 252
97, 373
120,195
55,016
51,428
59,925
59,023
44,352 1
53.8
53.5
55.4
60.6
36.9
109,146
111,927
155,960
174,467
186, 282
167, 552
165,031
165,812
190, 748
122,452
132,145
132,092
130,551
144,470
194, 872
136,777
144,388
82,173
86,471
81, 241
78, 013
55,038
156, 734
95, 328
75.7
67.1
65.4
61.5
59.8
38.1
80.4
69.7
53,999
50,110
55, 376
49,649
60,157
28, 341
26,427
31, 743
33,627
27, 425
52.5
52.7
57.3
67.7
45.6
92, 739
60, 227
66,031
66, 804
66, 422
75, 355
101, 838
71,005
61,149
39,926
43,102
42,024
38,357
30,979
67. 952
45, 521
65.9
66.3
65.3
62.9
57.7
41.1
66.7
64.1
FEDERAL
August...
595, 087
632,197
676,401
732, 490
923, 501
::::::':::r"::::::::
STATE
1945: A u g u s t
September
October
November
December
.__
_
..
1946: J a n u a r y February
March..
April...
MayJune
July...August .. _ .
1, 317, 681
124,784
540,007
1, 381,027
113,034
625, 399
1,479, 664
109,659
617,133
1, 632,607
125, 931
Table 1 4 . — S A V I N G S — S a v i n g s and loan share investments and repurchases, August 1946
[Dollar a m o u n t s are s h o w n in t h o u s a n d s ]
All associations
Period
1945: J a n u a r y - A u g u s t .
August
September.
October
November.
December..
1946: J a n u a r y - A u g u s t
January.._
February.
March
April
May
June
July
August
October 1946
New
investments
Repurchases
$1,532,027
$862, 775
196, 241
194,823
202, 777
184, 046
223, 885
104,
100,
119,
118,
94,
265
506
821
881
970
2,175, 467 1, 417, 567
334, 961
220, 469
243, 363
248, 077
246, 713
269, 694
356, 936
255, 254
244, 619
150, 656
158, 627
155, 455
147, 675
112,144
271, 568
176, 823
Net
inflow
i9, 252
I n s u r e d associations
Repurchase
ratio
New
investments
Repurchases
56.3 $1,239,677
$671, 769
156,189
146, 290
163, 628
147, 022
180, 352
83, 357
77, 855
91, 668
92, 650
71, 777
91, 976
94,317
82, 956
65,165
128, 915
53.1
51.6
59.1
64.6
42.4
757, 900
65.2 1, 784, 528 1,148, 396
90, 342
69, 813
84, 736
92, 622
99, 038
157, 550
85, 368
78, 431
73.0
68.3
65.2
62.7
59.9
41.6
76.1
69.3
283, 487
182, 679
198,176
198, 896
196, 973
219, 825
296, 710
207, 782
205, 537
122, 099
129, 573
123, 265
116, 370
86,017
224, 686
140, 849
Net
inflow
U n i n s u r e d associations
Repurchase
ratio
54.2
72,
68,
71,
54,
108,
832
435
960
372
575
53.4
53.2
56.0
63.0
39.8
636,132
77, 950
60, 580
68, 603
75, 631
80,603
133,808
72,024
66,933
72.5
66.8
65.4
62.0
59.1
39.1
75.7
67.8
New
investments
Repurchases
Net
inflow
$292, 350
$191, 006
$101, 344
40, 052
48, 533
39,149
37,024
43, 533
20,908
22,651
28,153
26, 231
23,193
19,144
25, 882
10, 996
10, 793
20, 340
390, 939
269,171
121, 768
51,474
37, 790
45,187
49,181
49, 740
49, 869
60, 226
47, 472
39,082
28, 557
29, 054
32,190
31,305
26,127
46, 882
35, 974
12, 392
9,233
16,133
16, 991
18,435
23, 742
13,344
11, 498
31
Increased Production of Building
Materials
(Continued from p. 14)
percent. Continued increases in production are
anticipated because of priorities and allocation
aids granted to manufacturers.
Wire nails: Preliminary estimates on shipments of
wire nails show an 18-percent gain over July and
that the previous postwar high set in April was
exceeded by 9 percent. The 61,000-ton output in
August represents substantial improvement in the
supply of this critical material, but accumulated
deficits require still greater production in the
months ahead.
Warm-air furnaces: T h e o u t l o o k for p r o d u c t i o n in
this field has been improved as manufacturers are
assured of priorities assistance in obtaining iron
castings, steel and fractional horsepower motors.
A 10-percent price increase authorized late in
August is also expected to boost the output of
residential furnaces. Preliminary data indicate
that 60,000 warm-air furnaces were manufactured
during August—an 18-percent gain over July.
Radiation: Production of cast iron and con vector
radiation increased 22 percent in August to reach
a new postwar high. The rate approximates current requirements, but CPA points out that
further increases are needed to meet the backlog
of unsatisfied demand and to provide adequate
distribution. Production is likely to be higher
in the next few months as a result of raw material
assistance, the premium payment plan for convectors, and the increased number of workers.
Builders' hardware: The shortage in builders' hardware has become increasingly evident as more and
more houses approach completion. This situation is likely to become more critical near the
end of this year. These materials have been
placed on CPA's list of critical products which
assures the industry of aid in obtaining production materials, capital equipment and maintenance
and repair supplies. Raw materials assistance
plus OPA price increases should help to step up
the output in the coming months.
Supply still behind demand
The encouraging reports outlined above, however, must be tempered with the fact that supply
is still behind demand for most materials. Requirements for the housing program and for the
32
large volume of other construction already under
way call for quantities even greater than the
current high output.
The small volume of production which characterized the early months of this year has resulted
in a pyramiding of requirements. The problem
is to satisfy this tremendous backlog as well as
to take care of current needs, to say nothing of
the problem of refilling the distribution pipelines.
In the coming months as the building materials
picture shows further improvement, the problem
of distribution will be among the most difficult
of solution. I t is to be expected that surpluses
will begin to develop in some areas while shortages persist in others. Maintenance of high
volumes of production will eventually solve even
these difficulties.
SEC Reports on Savings
•
D U R I N G the second quarter of 1946, individuals added $5.7 billion to their liquid
assets, according to the latest quarterly report of
the Securites and Exchange Commission. Although below the wartime rate, it was about twice
the amount saved by individuals during the first
quarter. The gain over the previous period was
primarily due to a sufficiently large increase in
income after taxes which more than offset rising
consumer expenditures.
Almost 90 percent of the gain in individuals'
savings was reflected in their deposit accounts.
Demand deposits were up $2.9 billion, and time
and savings deposits, $1.6 billion. Their cash on
hand and holdings of securities other than " Governments" were each about $500 million higher
than at the end of the previous quarter. Individual holdings of U. S. savings bonds gained
approximately $200 million. Redemptions exceeded sales of the Series E Bonds—the most
widely held of any of the savings series—but this
was more than counter-balanced by purchases of
the larger Series G Bonds.
In contrast to the gain in savings, the SEC also
noted a substantial gain in various forms of consumer indebtedness. Showing the largest quarterly gain on record, mortgage debt is estimated
to have risen $900 million. The increase was
almost equal to the net purchase of new homes.
In addition, other consumer debt was up $600
million.
Federal Home Loan Bank Review
Check List of Housing Regulations
(Actions effective as of October 1, 1946)
OFFICE OF HOUSING EXPEDITER
CIVILIAN PRODUCTION
ADMINISTRATION
Housing expediter priorities regulations
Veterans housing priority regulations
Latest
issue
date
Number
Subject
Number
HEPR-1
_— 8-15-46
HEPR-2
8-15-46
HEPR-3
9-13-46
HEPR-4
9-13-46
HEPR-5
8-27-46
Amendment 1
9-10-46
Establishes order of priorities for surplus
building materials and equipment (80
types) from WAA stocks.
Establishes order of priorities for materials and equipment for services and
utilities.
Establishes order of priorities for surplus
Government building equipment (9
types).
Provides certification for specially needed
materials and equipment.
Authorization and priorities assistance
for housing.
Authorization and priorities assistance
for housing.
Expediter priorities orders
Number
EPO-1
EPO-2 - - - .
EPO-3EPO-4.
Latest
issue
date
8-27-46
- . 8-27-46
9-13-46
9-27-46
Finding and delegation of authority.
Delegation of authority.
<<
(t
<«
It
it
<«
EPPR-1
Amended
EPPR-2
Amended
EPPR-3
Amended
EPPR-4
EPPR-5
EPPR-6
Amended
EPPR-7
Amended
EPPR-8
Amended
EPPR-9
Latest
issue
date
Subject
8-30-46
Structural clay products.
8-30-46
Softwood plywood.
8-30-46
Merchant gypsum liner.
7-31-46
7-31-46
9-3-46
Standing timber on state-owned lands.
Convectors.
Hardwood flooring—southern area.
9-3-46
Hardwood flooring—northern area.
9-30-46
Cast iron soil pipe.
9-19-46
Merchant pig iron.
8-27-46
Dir. 1
Dir. 2
6-21-46
9- 6-46
Supp.1
8-30-46
Supp. 2
7- 2-46
Supp.3
9-12-46
Supp.4
Supp. 5
VHP-2
VHP-3
VHP-4
(Amended)
7- 2-46
8-27-46
7-19-46
8-28-46
9-23-46
Subject
Forbids beginning of construction and
repair on buildings and certain other
structures without specific authorization.
Reconstruction in Hawaii.
Instructions on preparing CPA 4423
(non-housing) applications.
Fixtures and mechanical equipment
under order.
Explains provisions relative to beginning
construction.
Classifies structures covered, and not
covered, by VHP-1.
Lists items which are not structures.
Where applications should be filed.
General restrictions on hardwood lumber.
Use restriction on cast iron soil pipe.
Production restriction on cast iron soil
pipe.
Priority Regulations
Subject
Emergency premium payment regulations
Number
VHP-1
Latest
issue
date
9-16-46
6-14-46
Priority assistance for critical production.
Sets u p veterans emergency housing
program of CPA.
Amend. 1
8-6-46
Amend. 2
8-27-46
Sch. A
8-27-46
Sch.B
8-27-46
Extends period required (after 8-6-46)
for holding and selling houses to veterans.
Applications for housing to be filed under
HEPR-5 after 9-10-46.
Materials for priorities assistance under
PR-28.
How distributors of building materials
handle ratings.
Specifies percentage of sawmill production to be held for certified orders.
Specifies percentage of softwood plywood
production and reserve (construction
and door panel grades) for certified
orders.
Gypsum liner.
H H ratings for brick and structural tile.
PR-28
PR-33
(Amended)
Dir.l
(Amended)
Dir. 1A
(Amended)
8-28-46
Dir. 5
Dir. 6
(Amended)
Dir. 8
(Amended)
8-28-46
6-26-46
Dir. 11
(Amended)
Dir. 13
8-7-46
Listl
Dir. 42
8-21-46
5-31-46
9-11-46
5-8-46
8-21-46
Priorities assistance for manufacturers of
prefabricated houses, sections or panels
for Reconversion Housing Program.
. F P H A temporary re-use housing projects.
Production and sale of house trailers
under V E H P .
Veterans eligible to buy trailers.
Delegation to N H A for H H ratings under
V E H P established by PR-33.
FEDERAL
HOME
LOAN
BANK
DISTRICTS
eos^
BOUNDARIES OF FEDERAL HOME LOAN BANK DISTRICTS
FEDERAL HOME LOAN BANK CITIES
BRANCH 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 and Assistant Treasurer; L. E .
DONOVAN, Secretary-Treasurer; BEATRICE E. HOLLAND, Assistant Secretary;
INDIANAPOLIS
H . B. WELLS, Chairman; FERMOR S. CANNON, Vice Chairman and Vice
President; FRED T . GREENE, President Secretary; G. E . OHMART, Vice
President-Treasurer; SYLVIA F . BROWN, Assistant Secretary; CAROLINE F .
PHILIP A. HENDRICK, Counsel.
W H I T E , Assistant Treasurer; HAMMOND, BUSCHMANN & ROLL, Counsel.;^
N E W YORK
GEORGE MACDONALD, Chairman; R O Y H . BASSETT, Vice Chairman;
NUGENT FALLON, President; ROBERT G. CLARKSON, Senior Vice President;
DENTON C. LYON, Vice President and Secretary; HAROLD B . DIFFENDERFER,
Vice President and Treasurer; JOSEPH F. X. O'SULLIVAN, Assistant Secretary
and Office Attorney.
PITTSBURGH
E . T . TRIGG, Chairman; C. S. TIPPETTS, Vice Chairman; RALPH H . RICHARDS, President; G. R. PARKER, Vice President-Secretary; DALE
PARK,
Treasurer; WILLIAM S. BENDER, Counsel.
WINSTON-SALEM
H . S. HAWORTH, Chairman; E. C. BALTZ, Vice Chairman; O. K. LAROQUE,
President-Secretary; Jos. W. HOLT, Vice President-Treasurer; SPRUILL
THORNTON, Counsel.
CINCINNATI
HOWARD L. BEVIS, Chairman; W. M E G R U E BROCK, Vice Chairman; W. D .
SHULTZ, President; W. E . JULIUS, Vice President-Treasurer; J. W. WHITTAKER, Secretary; E . T . BERRY, Assistant Secretary; TAFT, STETTINIUS &
HOLLISTER, Counsel.
CHICAGO
C. E. BROUGHTON, Chairman; H. G. ZANDER, J R . , Vice Chairman; A. R
GARDNER, President; J. P . DOMEIER, Vice President and Treasurer; CONSTANCE M . WRIGHT, Secretary; LAURETTA
GERARD M . UNGARO, Counsel.
QUAM, Assistant Treasurer;
D E S MOINES
ROBERT E . L E E HILL, Chairman; E . J. W E B B , Vice Chairman; R. J. RICH-
ARDSON, President and Secretary; W. H . LOHMAN, Vice President and
Treasurer; A. E. MUELLER, Assistant Treasurer; J. M.. MARTIN, Assistant
Secretary; EMMERT, JAMES, NEEDHAM & LINDGREN, Counsel.
LITTLE ROCK
B. H . WOOTEN, Chairman; W. P . GULLEY, Vice Chairman; H. D . WALLACE
President; J. C. CONWAY, Vice President; W. F . TARVIN, Treasurer.
TOPEKA
W M . M. JARDINE, Chairman; J. E . BARRY, J R . , Vice Chairman; O. A.
STERLING, President and Secretary; R . H . BURTON, Vice President and
Treasurer; JOHN S. DEAN, Counsel.
SAN FBANCISCO
B E N A. PBRHAM, Chairman; W M . A. DAVIS, Vice Chairman;; F . H . JOHNSON, President and Secretary; GUY E . JAQUES, Vice President; IRVING
BOGARDUS, Vice President and Treasurer, Manager of Portland Branch; A.
C. NEWELL, Vice President, Manager of Los Angeles Branch; E. M . JENNESS,
Assistant Secretary; E . E . PEARSON, Assistant Secretary; KATHLEEN
MCCUMKNT, Assistant Secretary; T . A. MARCURX, Assistant Treasurer;
L. F . NOLAN, Assistant Treasurer; G. H. MELANDXB, Assistant Treasurer;
VERNE DUSENBEBY, Counsel.
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