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Vol. 7
PmMMs.
No. 12
FEDERAL
HOME LOAN BANK
REVIEW
SEPTEMBER
1941
ISSUED BY
FEDERAL HOME LOAN BANK BOARD
WASHINGTON D . C
NOTICE
FEDERAL HOME LOAN BANK REVIEW
INDEX
The Index of Volume 7, FEDERAL HOME L O A N
BANK REVIEW (October 1940-September 1941) #
is published at the back of this issue beginning on
page 438.
CONTENTS
FEDERAL
HOME
FOR SEPTEMBER . 1941
ARTICLES
D E F E N S E H O U S I N G : A PROVING GROUND F O R N E W IDEAS I N CONSTRUCTION .
.
Page
402
Project provides a field l a b o r a t o r y — T h e story of Indian Head
a n d its progress to d a t e — D e m o n s t r a t i n g t h e demountability—
T h e possible effect of these experiments on future lending
operations.
BANK
407
HOME-MORTGAGE FINANCING REACHES A T E N - Y E A R PEAK
LOAN
S i x - M ONTH COMPARISON O F M O R T G A G E R E C O R D I N G S — 1 9 4 0 TO 1941 . . . .
410
A 3-billion dollar business—Home-mortgage holdings increase
900 million dollars—The proportion of insured loans.
T H R E E STATES TACKLE T H E URBAN REHABILITATION PROBLEM
415
Causes a n d costs of u r b a n d e c a y — M a i n provisions of t h e N e w
York State l a w — T h e Michigan a n d Illinois laws—A timely
action.
MONTHLY SURVEY
REVIEW
Highlights a n d s u m m a r y
421
FEDERAL HOME LOAN
BANK BOARD
422
422
Residential construction
Published Monthly by the
General business conditions
Regulation of installment credit
422
Building costs
423
New mortgage-lending activity of savings a n d loan associations
423
Mortgage recordings
424
Foreclosures
John H, Fahey, Chairman
T. D. Webb, Vice Chairman
F. W. Catlett
W, H. Husband
F. W. Hancock, Jr.
424
Federal Savings a n d Loan Insurance Corporation
424
Federal savings a n d loan associations
425
Federal H o m e Loan Bank System
425
STATISTICAL TABLES
FEDERAL HOME LOAN
BANK SYSTEM
FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
New family dwelling units—Building costs—Savings a n d loan lending—Mortgage
recordings—Total nonfarm foreclosures—HOLC properties—Insured savings
and loan associations—Federal H o m e Loan Bank a d v a n c e s — G o v e r n m e n t investments in savings a n d loan associations—Private long-term savings. . . 426-434
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
HOME OWNERS' LOAN
CORPORATION
w
REPORTS
Resolutions of t h e Board
413 435
F r o m t h e m o n t h ' s news
414
Directory of member, Federal, a n d insured institutions added during J u l y August
419
I n d e x of volume 7 — F E D E R A L H O M E L O A N B A N K R E V I E W
438
SUBSCRIPTION P R I C E OF REVIEW. The FEDERAL HOME LOAN BANK REVIEW is the Board's medium of communication with member institutions of the Fed
eral Home Loan Bank System and is the only official organ or periodical publication of the Board. The REVIEW will be sent to all member institutions without charge
To others the annual subscription price, which covers the cost of paper and printing, is $1. Single copies will be sold at 10 cents. Outside of the United States, Canada
Mexico, and the insular possessions, subscription price is $1.60; single copies. 15 cents. Subscriptions should be sent to and copies ordered from Superintendent of Docu
ments, Government Printing Office, Washington, D. C.
APPROVED BY T H E BUREAU OF T H E B U D G E T
410380—41
1
DEFENSE HOUSING: A PROVING GROUND FOR
NEW IDEAS IN CONSTRUCTION
An opportunity for the utilization of new types of materials and
construction methods is an important by-product of the extensive
program now under way to provide adequate shelter for defense
workers. The project at Indian Head, Maryland, highlights developments in two new construction elements: demountability and
prefabrication.
•
In these days when "timetables" are allimportant, construction schedules have usually
been measured in terms of weeks or even months;
but not so at the Federal Government's new defense
housing project at Indian Head, Maryland. In the
short span of 8 hours, a crew of workmen tore down
a completed home—transported the component parts
a distance of 30 miles—and then reassembled the
pieces, making the house ready for immediate
occupancy! I n this manner some of the new
techniques in home building such as demountability
and prefabrication are being demonstrated currently
in the 650-unit defense housing project at Indian
Head, sponsored by the Public Buildings Administration of the Federal Works Agency.
Until recently, Indian Head was a small, peaceful
village of slightly more than 1,100 persons, most of
whom were employed at the Government-ownedand-operated Naval powder factory which is located
just outside the corporation limits. The defense
program with its emphasis on a two-ocean Navy has
hit this town, as it has so many other unprepared
communities, with its full force. Capacity of the
powder plant is being greatly increased and its working force will be doubled this Fall as operations in the
new divisions swing into full production.
General conditions surrounding the area offered
little inducement for private capital to enter the
market and supply the obvious need for additional
housing, so the Defense Housing Coordinator allocated funds out of the first Lanham Act to purchase a 158-acre tract of land just north of the town,
3.7 miles from the plant, and to erect 650 dwelling
units for the occupancy of civilian defense workers.
These pictures include general views of the defense housing project at Indian Head, Maryland. The three pictures across the top show some of the various stages
of construction from foundation to completely roofed-in dwellings. The lower photographs illustrate some of the detached and semi-detached units which are almost
ready for occupancy. The house in the lower left-hand corner is one which can be converted into a 3-bedroom unit and a 1-bedroom unit, instead of the usual
2-bedroom arrangement.
402
Federal Home Loan Bank Review
P R O J E C T PROVIDES A F I E L D
LABORATORY
The Indian Head project, however, was not
destined to be an ordinary construction job. Located
on the bank of the Potomac River only 32 miles from
Washington, D . C , it provided an excellent opportunity for the operation of a field laboratory testing
new materials and new methods of construction.
The site was within easy reach of all interested
Government housing officials who could check on its
progress and observe the performance of experiments
at first-hand.
As basic requirements for dwellings to be built on
this land, the contracts specified two conditions:
First, the houses must be "prefabricated," that is,
they must be assembled on the site from prebuilt
sections or panels. Second, an entirely new element
was added to their construction by requiring that
the houses be " demountable/' that is, capable of
being torn down and reassembled on another
location with a minimum loss of materials, equipment, and time.
Prefabrication is by no means a new factor in the
construction of houses for even in the last War there
were isolated attempts a t pre-cast concrete panels
and walls. The principal aim of such methods, of
course, has always been to reduce costs through mass
factory-like assembly lines—to achieve construction
economies through product specialization. Progress
in this field has been relatively slow, except in recent
years, yet the Architectural Forum has expressed the
hope that current defense housing needs might do for
prefabrication what World War I did for the aircraft
industry—raised it from infancy to adolescence in no
time. In the last year and a half the Navy and
Federal Works Agency have contracted for more
than 17,000 prefabricated units.
Demount ability, on the other hand, is indeed a
new phase of construction efforts, yet its impact
upon the long-run economic effect of large-scale
defense housing is worthy of careful study and consideration. There is no question but that much of
the present housing demand will be temporary in
nature—a few months perhaps, a few years at most—
yet the need is acute and must be met now. If the
boom towns of today become the ghost towns of
tomorrow, then the economic consequences of a
program of permanent houses for which there would
be no permanent demand are obvious. If, however,
it is possible to secure a type of shelter more adequate
than a trailer or tent, yet possessing in degree the
identical qualities of mobility and high salvage
September 1941
Location of each of the 650 units of the Indian Head defense housing project
is shown in the site plan above. Outstanding features of the layout include the
extensive use of closed-end streets (cul de sacs) and the adequate provision for
parking areas. The Potomac River is located just a few feet from the west
boundary of the plot.
value, then more practical solutions for our problems
of emergency housing today can be administered.
This is the goal of demountable housing, and since
approximately 70 per cent of the contracts for prefabricated units include this requirement it may be
assumed that demountability will be p u t to the test.
THE
STORY
OF INDIAN
TO
HEAD
AND ITS
PROGRESS
DATE
Unlike most defense housing projects which are
usually awarded in the orthodox manner to one
contractor, the 650-unit quota established for Indian
Head was parceled out to 11 individual builders
with orders ranging from 20 to 77 units. This was
done, of course, to include as many producers as
possible in the demonstration, and with the full
realization that the procedure tended to nullify one
of prefabrication's principal advantages: the mass
production economies of large-scale operations.
403
TYPICAL FLOOR PLAN OF PREFABRICATED
HOUSE AT INDIAN HEAD, MARYLAND
T
BEDROOM
BEDROOM
8-7" X lf-9"
if-10" X- u-10"
r~~\
LIVING
ROOM
II1-10" X 15'-10"
KITCHEN
8-8" X 11-10"
Floor plans of each of the 11 types of houses included in the Indian Head project
are similar to the design shown above. When two of these units are placed
back-to-back, the bedroom walls may be relocated so that one house contains
three bedrooms, and the other, one bedroom.
Initial contracts were let early in the Spring, but
final arrangements for all the buildings were not
completed before mid-summer. Actual construction
of the houses has also proceeded in staggered fashion
and while some groups were classified as 90-95 percent complete when R E V I E W editors visited the project in mid-August, one or two of the individual
constructors had not yet started production. For
this reason, it is difficult to generalize on the over-all
progress of the project. A considerable portion of
the dwellings, however, is expected to be ready for
occupancy by the first of October. That this will
be achieved is indicated by the accompanying
pictures.
The general plan of the Indian Head project is
illustrated by the site map at the top of page 403.
Actual location of the individual houses varies
slightly as every effort was made to preserve trees
and other natural advantages of the terrain and the
river. Cut de sacs have been used frequently in
404
accordance with the most advanced thinking in
subdivision layout. The individual lots average
approximately 50 x 100 feet, although a few choice
sites run much larger than this.
A typical floor plan of the Indian Head houses is
shown on this page and variations from this design
introduced by the individual contractors are slight.
Over-all dimensions for most of the dwellings are
approximately 24 x 28 feet. About one-third of
the 650 units will be detached homes, and the remaining two-thirds will have common rear walls as
is evident from the photographs of those already
completed and from the plot plan. The basic
design for all homes includes two bedrooms, livingroom and kitchen. One-bedroom and three-bedroom units, however, will be available as a result
of relocating certain partitions in those houses
which are placed back-to-back. Total cost of the
houses, excluding land, will average in the neighborhood of $2,800-$3,000.
Various types of materials are included in the
interior and exterior finishes of the dwellings.
Wood remains the predominating element, although
composition products and metals also play important roles. One group of houses with an all-steel
frame has been the object of considerable favorable
discussion/ but defense priorities recently invoked on
this strategic material will undoubtedly hamper the
use of this design for the duration of the present
emergency. Plywoods and composition products,
including one manufactured by repulping old newspapers, have also proven extremely adaptable to the
prefabrication processes.
About the only conventional building material
which is not present in the finished dwellings is
plaster. Transportation of the large-size wall and
room panels would be complicated by the use of
plaster in prefabricated units, and further, the demountability requirement places a substantial barrier
in the path of its use in the ordinary manner.
DEMONSTRATING THE DEMOUNTABILITY
The first in the series of tests proving the demountability of each type of house included in the Indian
Head project was carried out at the end of July.
As the pictures reproduced on page 405 indicate,
the experiment consisted of taking down a completed
dwelling, loading it on trucks, then driving it over
rough roads for 30 or more miles. At the end of this
1
For a discussion of these all steel homes see, "Factory Built Homes," FEDERAL
LOAN BANK REVIEW., September 1939, p. 373.
Federal Home Loan Bank Review
Houses That Move!
Assembling and demounting demonstration of prefabricated and d«moimtable
dwellings on the defense housing project pt Xndiaxihead* Maryland* -
September 1941
405
jaunt, the house was reassembled on an entirely
new site and a complete record of the extent of
damage was made. The crew was composed of 28
men, although many of the workmen were needed
only part of the time.
Officials of the Public Buildings Administration
and the Federal Works Agency timed the entire
process and found that the "demounting" operation
(taking the house apart) required approximately
three hours. Putting it back together required a
somewhat longer period of time.
According to estimates of the construction engineer for the project, salvage value for this particular
demonstration was believed to have been between
97 and 98 per cent! This adds considerable support
to the claims made by advocates of this type of
housing for more wide-spread use in areas where
the present housing demands are of a temporary
character.
T H E POSSIBLE E F F E C T OF T H E S E EXPERIMENTS ON
F U T U R E LENDING OPERATIONS
The research director of the Twentieth Century
Fund's Housing Survey has recently emphasized the
fact that the mortgage lender today is faced with the
necessity of knowing a great deal more than ever
before about the character and performance of the
building materials and the construction techniques
behind his mortgage securities. By taking the easy
way of refusing to handle loans except where traditional materials are used in conventional ways, he
may be loading himself with rapidly depreciating
collateral. By indiscriminately grasping at the
newer ideas, he may be doing the same thing.
Tliere is no doubt that, if construction costs can
be reduced appreciably through more economical
use of materials and labor, the market for new
homes would be immeasurably widened. This
would mean increased opportunities for lending
institutions, but at the same time would necessitate
a revision of lending standards, construction supervision, appraisals, as well as amortization terms,
interest rates, and loan ratios.
Assuming that the physical security behind the
mortgage—the house itself—can be attested to,
attention on the problem of risk is then centered on
the ability of the borrower to repay the loan. In the
case of defense workers whose incomes may be
unusually high during the period of armament
prosperity, the accumulation of a " reserve fund"
through an increased loan-payment plan might
406
compensate for the inevitable readjustment to peacetime production.
Even the feature of demountability incorporated
in some of these new houses becomes an additional
safeguard for both mortgagee and mortgagor. The
element of mobility can be useful in maintaining a
proper balance between the supply of, and the
demand for, living quarters, because if one community faces a shortage while another area is
experiencing a surplus, the transfer of sufficient
units to relieve the situation could be accomplished.
Further, from the standpoint of the borrower, it is
conceivable that this same mobility factor would
help to remove the hesitancy of many workers in
investing in home ownership because of the uncertainties of future labor opportunities in their present
"defense" communities.
Whether these theories will be borne out by the
experience at Indian Head is yet to be fully determined. What we know already, however, is sufficient to indicate that the future lending operations
of mortgage institutions are likely to be affected
fundamentally by the new ideas in construction
which are receiving practical tests in our defense
housing program.
Survey of Recent Rent Increases
•
A survey of housing facilities made after one
year of defense effort reveals substantial rent
increases in most of the 58 communities studied.
Included in the survey made by the Work Projects
Administration for the Office of Price Administration and Civilian Supply were many localities directly
concerned in defense production as well as a number
of areas adjacent to expanding military encampments.
More than half of the communities surveyed
exhibited rent increases for more than 30 percent of
their rental dwellings. In a number of areas the
increases are startling: in Brownwood, Texas, rents
on more than three-quarters of the dwellings had been
raised and the average increase was 64 percent.
Almost three-fourths of the rents in Leesville, Louisiana, were jumped, the average increase amounting
to 109 percent.
In a study made by the same agency at the request
of the Defense Housing Coordinator to determine
vacancy ratios in defense areas, 90 percent of the
areas were found to have ratios well below the normal
5 percent level and two out of every five exhibited
critical situations with less than 2 percent of the
dwelling units vacant.
Federal Home Loan Bank Review
A SIX-MONTH COMPARISON OF MORTGAGE
RECORDINGS—1940 TO 1941
Savings and loan associations continued to hold first place in the
volume of nonfarm mortgages of $20,000
and under recorded for
the first six months of 1941.
The following statistics, which show
the trends in mortgage activity for this year, are made possible by
the monthly summaries of mortgage recordings prepared by the
Division of Research and Statistics.
•
MORTGAGE-financing activity during the first
half of this year surpassed all but the peak
periods of the "boom Twenties." Reflecting a more
active real-estate market and improved economic
conditions resulting from the defense program, the
volume of nonfarm home mortgages of $20,000 or
less recorded during the first six months of 1941
reached a new high in excess of $2,200,000,000—
an increase of more than $330,000,000, or 17.5
percent, over data for the corresponding period
of 1940.
Savings and loan associations continued to account
for the largest single share (31.9 percent) of recording
activity as is evident from the " p i e " chart on the
left in the illustration in the next column. Commercial banks and trust companies were responsible for
the second largest portion of the total dollar volume
of recordings — almost exactly one-fourth (24.9
percent). Individual lenders, the "other" mortgagee
classification, insurance companies, and mutual savings banks followed in that order.
Without exception, every class of mortgage lender
recorded a greater volume of mortgages during the
first half of this year than during the same period
of 1940. Mutual savings banks showed the largest
percentage increase in the direct year-to-year comparison, with insurance companies ranking second.
This is shown clearly in the right section of the
following chart which indicates the gains in business
recorded by each type of mortgagee.
From the standpoint of an operating executive or
of an industry, it is not enough merely to know that
one's activity has increased. I t is more important
to know whether one is keeping pace, gaining on, or
falling behind the other factors in the home-financing
field. These trends may be discovered by studying
the relationship of each lender's bar to the vertical
dotted line which represents the average gain for all
lenders. From this we can observe that mutual
savings banks and insurance companies made the
September 1941
MORTGAGE RECORDINGS; First 6 Months 1941
UNITED
PERCENT DISTRIBUTION
STATES
PERCENT CHANGE OVER is* 6 MO. 1940
-20
-10
0
+10
+20
+30
+40
+50
WEEM'
i
I i
^^^^^
i
„ , , , , !
?
•
1
J-^ALL LENDERS
*****
i
1
The two sections of this chart indicate trends in nonfarm mortgages of $20,000
and less recorded throughout the United States during the first 6 months of this
year in comparison with the corresponding period of 1940. The "pie" chart on
the left-hand side indicates the percentage of the total volume of mortgage
recordings made by each lender. The bars in the right-hand section show the
percentage of gain for each type of mortgagee over last year. The relation of each
of these bars to the "all lender" line (vertical dotted line) is an indication of
whether a lender has increased, maintained, or decreased his share of the total
mortgages recorded.
largest gains during the past year. The improvement
shown by banks and trust companies, savings and
loan associations, and individual lenders was about
equal to the average increase for all lenders.
One highly significant trend in this year's mortgage-lending activity—not evidenced by the charts
—is the increase in the average dollar amount of
the mortgages. The average instrument recorded
during the first half of 1941 was more than $100
larger than in the previous year. This is primarily
the result of a higher average loan for commercial
banks and savings and loan associations.
Trends in one's own community, county, and
State are, of course, of prime importance to an individual lender and many association executives are
now including statistics such as these with other
essential operating data. To supplement these local
studies, the REVIEW presents the following thumbnail summaries of important changes in each Federal
Home Loan Bank District:
407
Boston: Savings and loan associations and cooperative banks continued to record the largest portion
(36 percent) of the dollar volume of recordings,
although their 1941 gain was not on a par with the
increase for the entire District. Mutual savings
banks, commercial banks, and individuals added to
their share of the total business, while the "other"
lender classification and insurance companies registered declines from their 1940 proportions.
New York: Following last year's pattern, the three
top lenders were within one percentage point of each
other iii their shares of the total recordings. Bank
and trust companies, however, replaced savings and
loan associations as the leading source of mortgage
funds in this District during the first half of the year.
Insurance companies showed the greatest improvement over the corresponding 1940 period.
Pittsburgh: Banks and trust companies have
strengthened their hold on first place in this District
as a result of their 33-percent gain over the first 6
months of 1940. Savings and loan associations were
again in second position, although their rate of gain
was not as fast as for the entire region. The 48percent rise in insurance company recordings was
the largest made by these institutions in any area.
Winston-Salem: The 37-percent share of the total
recording activity in this District accounted for by
savings and loan associations stamped them as the
leading source for home-mortgage funds. Again
insurance companies registered substantial gains over
their 1940 volume, as did mutual savings banks,
individuals, commercial banks and trust companies.
The 19-percent increase for the District as a whole
ranked fourth among all Districts.
Cincinnati: Savings and loan associations increased
their already substantial share of the total mortgage
recordings in this District, being responsible for
nearly one-half (49 percent; of the dollar volume
during the first 6 months of this year. The 27percent gain for the District as a whole was exceeded
by only one other area. JVIutual savings bank
recordings were well above their 1940 volume, but
were small in proportion to the total activity.
Indianapolis: Recordings by individual lenders
showed the greatest improvement over the first half
of the past year, with those of savings and loan
associations ranking second. Commercial banks,
however, continued to retain their position as top
lenders in the District, although their ratio dropped
from 37 percent in 1940 to 35 percent this year.
Insurance companies accounted for 13 percent of
the total volume in this area.
Federal Home Loan Bank Review
Chicago: The 37-percent increase in total recordings
registered in the Seventh District was the highest in
the entire country. Gains by the "other" lender
classification, by individuals, and by commercial
banks and trust companies were in large part
responsible for this significant improvement. Savings
and loan recordings were up 31 percent and accounted
for the largest single share of the aggregate volume
during the first six months of this year.
Des Moines: The 10-percent decline in recordings
of individual lenders was the most outstanding change
in this region, as it dropped this classification from
second to fourth place in the share of total recordings.
Savings and loau associations continued to hold first
place and, together with commercial banks which rose
to second position, accounted for more than half of
the dollar volume of recordings during the first half
of this year.
Little Rock: Banks and trust companies registered
their largest year-to-year increase (29 percent), but
the gain for the District as a whole was next to the
smallest for any of the 12 regions. Savings and loan
associations continued to make the greatest single
share of all loans, in spite of the fact that their 1941
volume was fractionally below their activity for the
same 1940 period.
Topeka: This was another District which experienced a relatively small improvement over the volume
of mortgages recorded during the first half of 1940.
The 25-percent gain of the "other" mortgagee classification and 15-percent rise in insurance company
recordings were substantial, however. Savings and
loan recordings were up 5 percent, and their ratio to
the District total was the second largest which these
institutions registered in any region.
Portland: Generally speaking, all changes in this
region may be described as "average," with the exception of insurance companies which recorded their
second largest increase here. The 29-percent gain in
mutual savings bank recordings was also significant,
but in relation to the District's total volume, mutual
savings b a r k recordings remained small. Savings
and loan recordings increased 16 percent over the
corresponding period of 1940.
Los Angeles: The 8-percent improvement in the
dollar volume of mortgages recorded in the Twelfth
District was the smallest change indicated in any
region. Insurance companies, the "other" mortgagee
classification, and savings and loan associations all
registered gains of more than 10 percent over 1940
and thereby added slightly to their share of the
total mortgage volume.
September 1941
MORTGAGE RECORDINGS; First 6 Months 1941
PERCENT CHANGE OVER |St6MO.I940
PERCENT DISTRIBUTION
DISTRICT 7-CHICAGO
-20
-10
0
+ 1 0 + 2 0
+30
+40
+50
I
DISTRICT 8-DES MOINES
**-.ALL LENDERS
DISTRICT 9-LITTLE ROCK
11
1
1
1
1
.
1
lit]
^§^^^1^1
i
4
1
DISTRICT 10-TOPEKA
I
LL
DISTRICT II-PORTLAND
DISTRICT 12-LOS ANGELES
409
HOME-MORTGAGE FINANCING REACHES A TEN
YEAR PEAK
Reflecting a substantial volume of new residential construction,
large sales of institutionally owned real estate, and further improvements in real-estate conditions, home-mortgage lending
activity during 1940 reached a 10-year high. The total nonfarm
home-mortgage debt outstanding rose to well over 19 billion
dollars.
•
A Q U I C K E N E D pace of recovery in the homemortgage market is reflected in the Bank Board's
new estimates of the volume of home-mortgage loans
made in 1940 and of the concurrent changes in the
home-mortgage debt outstanding. Mortgage loans
written on 1- to 4-family nonfarm homes during the
past year totaled $3,322,000,000—up almost 16
percent from 1939 and the largest volume reached
within a decade. The balance of loans outstanding
on this type of property at the close of the year
stood $900,000,000 above the 1939 year-end figure,
compared with a net gain of less than $600,000,000
during 1939.
Savings and loan associations showed a highly
satisfactory performance within this general picture
of accelerated activity. They scored the largest
gain in lending activity both dollar- and percentagewise, and their home-mortgage holdings for the first
time in seven years passed the 4-billion-dollar-mark.
In the midst of keen competition for home-mortgage
investments by financial institutions of various types,
they were able not only to maintain but to improve
their position as the top lender on home mortgages—
the financing service in which they have specialized
for more than a hundred years.
A 3-BlLLI0N-D0LLAR
BUSINESS
The $3,322,000,000 in new mortgage loans made
on 1- to 4-family nonfarm homes during 1940 was
the result of various factors conducive to an upswing
RECOVERY OF HOME FINANCING, 1933-1940
ESTIMATED VOLUME OF MORTGAGE LOANS MADE ON
NONFARM ll-TO 4-FAMILY DWELLINGS, BY TYPE OF LENDER
3.5
Table 1.—Estimated amounts loaned on 1 - to
4-family nonfarm dwellings, 1940
[Amounts are shown In millions of dollars]
Type of lender
Loans
made
during
1940
Dollar Percentchange
age
over
change
1939 over 1939
Savings and loan associations __ $1, 200
Individuals and others
865
Commercial banks and their
trust departments
689
Life insurance companies
324
Mutual savings banks
133
Home Owners' Loan Corporation
__
__
111
+ $214
+ 125
+ 21. 7
+ 16.9
+ 79
+ 50
+ 21
+ 13. 0
+ 18.2
+ 18.8
-40
- 26. 5
3,322
+ 449
+ 15. 6
Total
410
1933
1934
1935
1936
1937
1938
1939
1940
This flow chart shows the revival of home-mortgage lending activity from the
low of 1933, when only $865,000,000 in home mortgages was written, through 1940
when the volume of new home mortgages made reached $3,322,000,000. The
chart also indicates the relative importance of the various types of lenders in the
annual home-mortgage financing activity.
Fee/era/ Home Loan Bank Review
in lending activity. The high volume of new home
construction, stimulated by a genuinely increased
housing demand, called for large amounts of mortgages as most of today's new building is financed
by high-percentage loans. Also, financial institutions during 1940 sold several hundreds of millions
of dollars worth of homes previously foreclosed by
them, and the majority of these sales likewise were
financed by high-percentage purchase-money mortgages. Finally, the year 1940 witnessed a generally
increased volume of real-estate transactions in
privately owned existing properties, which frequently involve new financing.
ESTIMATED OUTSTANDING MORTGAGE DEBT
ON PRIVATE NONFARM l-TO 4 - FAMILY HOMES
AS OF DEC.31 EACH YEAR,
1925-1940
rr^
20
18
:'
™
l6
[
<
>
/
tr
* '4
-j
o
o
,2
1! • ' '
I
U-
o
W
\o\
z
°
_J
-1
C
D
8^
1
6
r
4
|
r
2
r
*
r
~ .
—
oL '25 .'26 -'27
.3
'28 ' 2 9 ' 3 0 '31 ' 3 2 ' 3 3
' 3 4 ' 3 5 ' 3 6 s 3 7 *ZQ '39
'40
At the end of 1940, the private home-mortgage debt had recovered to a level
approaching that of 1928 but was still more than $2,000,000,000 below the 1930
peak. The debt liquidation from 1930 through 1936 was followed by a gradual
recovery in the past four years.
The above chart illustrates the changes in the distribution of the total homemortgage holdings over the different types of mortgagees. From 1939 to 1940
savings and loan associations, commercial banks, and life insurance companies
increased their share in the aggregate home-mortgage holdings, while the relative
importance of mutual savings banks, the Home Owners' Loan Corporation, and
the group "individuals and others" declined during the past year.
While the dollar amount of home mortgages
written in 1940 was still below the 5-billion-dollarmark reached in the late 20's, it must be taken into
account that prices for old as well as new properties
are now considerably lower than in the boom period
from 1927-1929, and that the small home is more
prevalent in present-day real-estate transactions
September 1941
than it was at that time. This means that every
million dollars in mortgage loans made at the present
time involves a larger number of homes than did the
same amount of mortgage funds loaned during the
late 20's.
All types of private lenders expanded their activity
during 1940. I n the order of percentage increases,
savings and loan associations ranked first and were
followed by mutual savings banks (whose dollar
gain in lending volume, however, was only $21,000,000), life insurance companies, "individuals and
others/' and commercial banks and their trust
departments. The only mortgagee to show any
decline in lending activity was the Home Owners'
Loan Corporation whose new loans are, of course,
restricted to advances to existing borrowers and to
the making of purchase-money mortgages in connection with property sales. The 40-million-dollar
decrease in HOLC lending was due to the tapering
off of loans for tax and insurance purposes and to a
somewhat lower volume of sales of properties previously acquired by the Corporation.
411
Table 1 on page 410 shows the volume of home
mortgage loans made during 1940 on nonfarm 1- to
4-family dwellings, by type of lender, as well as the
dollar and percentage change over 1939.
Savings and loan associations were responsible
for almost one-half of the total gain in lending volume
by all mortgagees from 1939 to 1940 and they accounted for 36 percent of the aggregate amount of
home-mortgage loans made in 19407 compared with
34 percent the year before.
HOME-MORTGAGE
HOLDINGS
INCREASE
NINE
HUNDRED M I L L I O N DOLLARS
Naturally, the net increase of the home-mortgage
debt outstanding—$907,000,000—was considerably
less than the gross addition of new mortgage loans
made during the year. Offsetting the gross increment are prepayments of outstanding loans as well
as the regular repayments of principal through
amortization. Another offsetting factor is represented by foreclosures which shift mortgage loan
holdings to the "real estate owned" account. Also,
refinancing loans enter into the statistics of new
mortgage-lending activity without affecting the
home-mortgage debt outstanding. As a result, the
estimated balance of home mortgages outstanding
increased only from $18,216,000,000 to $19,123,000,000—a 5-percent gain over the 1939 figure and the
largest annual rise since 1929.
Three types of institutions were responsible for almost all of the $907,000,000 increase in home-mortgage debt during 1940. Savings and loan associations
accounted for $346,000,000, commercial banks for
$285,000,000, and life insurance companies for
$268,000,000. The relative gains were 18 percent
for insurance companies, over 15 percent for commercial banks, and more than 9 percent for savings
and loan associations.
Mutual savings banks and the classification "individuals and others" showed relatively slight increases of $20,000,000 and $70,000,000, respectively.
Holdings of the HOLC declined $82,000,000 during
the year—the net result of increased repayments on
loans, which were only partially offset by property
sales on credit creating new mortgage instruments.
The HOLC is, of course, in the process of liquidation,
and if it is omitted, the total balance of mortgage
holdings by active lenders increased a full billion
dollars during the past year.
Analyzing the distribution of the aggregate homemortgage holdings among institutional lenders at
Table 2.—Estimated balance of outstanding mortgage loans on 1 - to 4-family nonfarm homes *
[Millions of dollars]
Savings
a n d loan
associations
Year
1925
1926
1927 _
1928
1929
1930
1931
1932
1933
1934
1935
1936
1937_ _
1938
1939
1940-_
. ___
_ _ _
- _
_ ___
_
___
_ .__
$4, 204
4, 810
5, 488
6, 060
6, 507
6, 402
5, 890
5, 148
4, 437
3, 710
3, 293
3, 237
3,420
3. 555
3, 758
4, 104
Insurance
companies
$837
1,062
1,254
1, 445
1, 626
1, 732
1,775
1,724
1, 599
1, 379
1, 281
1, 245
1,246
1,320
1,490
1, 758
Mutual
savings
banks
$2, 375
2, 650
2, 900
3, 125
3, 225
3, 300
3, 375
3,375
3, 200
3,000
2, 850
2, 750
2,700
2, 670
2, 680
2, 700
Home
Owners' Individuals
Commercial b a n k s Loan Cor- a n d others 2
poration
$800
1, 250
1, 850
2, 375
2, 500
2, 425
2, 145
1, 995
1, 810
1, 189
1, 189
1, 230
1, 400
1, 600
1,810
2, 095
$132
2,379
2, 897
2,763
2,398
2, 169
2,038
1,956
$5, 000
5, 500
6,000
6, 600
7, 200
7, 400
7, 500
7,000
6, 700
6, 200
6,000
6,000
6, 180
6, 332
6,440
6, 510
Total
$13, 216
15, 272
17, 492
19, 605
21, 058
21, 259
20, 685
19, 242
17, 878
17, 857
17, 510
17,225
17, 344
17, 646
18, 216
19, 123
1
For a detailed description of t h e source of these estimates see November 1939 R E V I E W , page 5 1 , a n d September 1940
R E V I E W , page 410. T h e above table reflects a revision of previous estimates for savings a n d loan associations. T h e revised
figures include only operating institutions a n d exclude t h e estimated a m o u n t of mortgage loans against wThich t h e borrowers h a d
pledged shares t h a t , in reality, are an offsetting item reducing t h e borrower's indebtedness. This revision was m a d e possible
by a recent estimate of t h e volume of such pledged shares for t h e period covered in t h e table. H O L C holdings for 1933 a n d 1934
were revised t o conform with t h e Corporation's accounting records.
2
Includes fiduciaries, t r u s t d e p a r t m e n t s of commercial banks, real estate, bond companies, title a n d m o r t g a g e companies,
philanthropic a n d educational institutions, fraternal organizations, construction companies, R F C Mortgage C o m p a n y , etc.
412
Federal Home Loan Bank Review
Table 3.—FHA
home mortgages written during
1940
[Title I I , premium-paying loans]
T y p e of lender
Commercial banks and their t r u s t
departments
Life insurance companies
Savings and loan associations
M u t u a l savings banks
Others
Total
Amount
Percent
000
000
000
000
000
45.0
12.6
8.7
3.9
29. 8
736, 000, 000
100. 0
$331,
93,
64,
29,
219,
000,
000,
000,
000,
000,
N O T E . — T h e s e figures do not include $25,590,000 in Title
I, Class 3, loans of $2,500 or less (small home construction
loans).
the end of 1940, we find that savings and loan associations continued to lead the field, followed by mutual
savings banks, commercial banks, the Home Owners'
Loan Corporation, and life insurance companies.
However, the residual group " individuals and others''
accounted for a larger portion of the total than any
single type of financial institution. (See the righthand chart on page 411.)
T H E PROPORTION OF INSURED LOANS
FHA-insured home mortgages continued to be a
strong factor in the expansion of lending activity.
The aggregate volume of premium-paying loans
written during 1940 under Title I I of the National
Housing Act reached $736,000,000 compared with
$669,000,000 the year before. However, the proportion of FHA loans in the total amount of home
mortgages written declined slightly from 23.3 percent in 1939 to 22.2 percent in 1940. The table
above shows the distribution of FHA-insured loans
made last year, by type of lender. (Because of the
large transfers in the ownership of FHA-insured
mortgages, this breakdown of loans made during
1940 does not indicate the present holders of these
instruments.)
Of the aggregate outstanding home-mortgage debt
at the end of 1940, FHA-insured loans under Title I I
represented 12 percent. The estimated unpaid balance of FHA mortgages at that date was $2,296,000,000 compared with $1,720,000,000 the year before.
Commercial banks accounted for $1,089,000,000;
life insurance companies for $517,000,000; savings
and loan associations, $213,000,000; mutual savings
banks, $142,000,000; and the "other" classification,
$335,000,000.
September 1941
410380—41——3
The proportion of FHA-insured loans in the total
home-mortgage portfolio of the different types of
lenders varies greatly. At the close of last year, 52
percent of the aggregate amount of all home mortgages held by commercial banks was insured by
the FHA under Title I I . The ratio for life insurance
companies was 29.4 percent, for mutual savings
banks, 5.3 percent, and for savings and loan associations, 5.2 percent.
Additional Funds for Title V I
•
SECTION 603 of the National Housing Act,
providing for funds to insure loans on defense
housing, has been amended by increasing the original
$100,000,000 authorization to $300,000,000. The
enactment was approved by the President on September 2, 1941.
Title VI was originally approved on March 28,
and details of the Act appear in the April R E V I E W ,
page 221.
Resolutions of the Board
PROPOSED AMENDMENT
P R O P O S E D A M E N D M E N T TO T H E R U L E S AND REGULA-
T I O N S FOR INSURANCE OF ACCOUNTS,
THE ADJUSTMENT OF INSURANCE
RELATING TO
PREMIUMS
WHEN
ASSOCIATIONS PURCHASE BULK ASSETS.
On August 7, 1941, the Board of Trustees of the
Federal Savings and Loan Insurance Corporation
proposed a resolution amending the last sentence of
subsection (c) of Section 301.13 of the Rules and
Regulations for Insurance of Accounts. The proposed amendment provides for premium credits in
the event of the purchase of bulk assets, as well as
in the event of the merger or consolidation of insured institutions, as provided in the present regulation. If this proposed amendment is adopted the
last sentence of this subsection will read as follows:
Provided, however, T h a t if t h e institution which is a b sorbed by applicant b y such merger, consolidation or
purchase of bulk assets is an insured institution, the
applicant shall receive a credit upon its future premiums
of t h e unearned portion of a n y p r e m i u m theretofore
paid to the Corporation by such absorbed institution.
This proposed amendment will not be formally
approved until at least 30 days after it was mailed
to the Advisory Council (August 11).
(See also p. 4-35)
413
«
FROM THE MONTH'S NEWS
PROBLEMS: "The national defense program is both solving and creating problems for state and local governments. It
is increasing employment, reducing relief
expenditures, raising tax receipts, and
enhancing real-estate values in many
areas. At the same time, it is confronting local officials with acute problems of
increasing municipal services—and finding
the money to pay for them. , ,
Richard P . Dietzman, Fifth
District Quarterly, July 1941.
LIQUIDITY: "A study of withdrawal
problems and an analysis of other cash
needs can be made by management from
time to time based on current figures and
previous experience. This, however, will
not give the final volume of cash needs,
for to it must be added a further sum to
provide a margin, a hedge, or a safety
factor against the unexpected and the
unpredictable."
"From now on, until peace comes, there will be as much need for
the various housing agencies holding down on the wrong kind of
house-building as for stimulating the building of houses where they
are most needed. Perhaps new housing of the luxury or higher
income type can be curtailed in favor of housing essential for decent
living conditions for defense workers and low-income groups."
Honorable Henry A. Wallace,
American Savings and Loan News,
July 1941.
No diversion of present savings
' T h e Treasury Department is not trying to divert present savings
into Defense Savings Bonds. I t is trying to avoid this. B u t I suppose we must expect some such syphoning process at first. The
defense savings program appeals to swollen pay envelopes. Withdrawal of present reserves and drawing down of savings deposits for
the purchase of these securities defeats the purpose of tapping current
increases in income. Only by reducing current income can we reach
the economic objectives of the campaign."
Robert W. Sparks, The American
Banker, June 18,1941.
FAMILY HOUSING EXPENDITURES IN SELECTED CITIES
HOME OWNERS AND RENTERS,BY INCOME CLASSES
1935-1936
ATLANTA
PROVIDENCE
$600
RENTERS—:Fjr
OWNERSp
Morton Bodfish, Savings and
Loans, July 1941.
CONFIDENCE: "By Latin derivation, of
course, the term 'credit' denotes 'faith' or
'confidence\ In this modern time of
international aggression and conflicting
ideologies, it should be recognized that
this credit—this faith or confidence—is
the mortar which binds the structure of
business, society and government."
»
Unnecessary building
Wall Street Journal, July 14,
1941.
POLICY: "A sound lending policy . . .
in boom times will take into consideration, first, how long the boom period during which the borrower will probably
make his payments without trouble may
be expected to run. Secondly, what
then will be, if the boom period has collapsed and his ability to pay ceased, the
sound sale value of the property/'
»
•
"
i!
-
DENVER
$600
$600
Emil Schram, before the National Retail Credit Association, June 16, 1941.
CURRENT APPRAISALS: "In the matter
of rising costs it is always wise not to
follow temporary fluctuations but to wait
until a cost level is seasoned and established. My advice, if costs advance
slowly and in an orderly fashion, would
be to lag at least six months behind. If
costs increase rapidly, better wait a year
and see how the market responds."
Frank D. Hall, The Review of
the Society o]
Residential
Appraisers, May 1941.
1,500
2,25Q
4,000
BUNDER
BUNDER
a UNDER
1,750
2,500
5,000
I N C O M E
DOLLARS
Source:U.S. Bureau of Labor Statistics
This chart, prepared from data in a recent publication of the U. S. Department of Labor, provides additional support to the contention that "home-owning pays." With few exceptions, home-owning families
spent considerably less for housing during the period under observation than did comparable renting
families in their own income class. Additional data from this same source indicates that the accommodations provided in owner-occupied dwellings were substantially above those provided in rented facilities.
Family Expenditures in Selected Cities, 1985-1936,
Bulletin No. 648, U. S. Department of Labor.
Federal Home Loan Bank Review
THREE STATES TACKLE THE URBAN REHABILITATION PROBLEM
New York, Michigan, and Illinois are the first States to pass legislation facilitating the use of private capital for the redevelopment
of substandard areas. The enactment of this legislation marks an
important step toward solving the problems created by urban blight.
•
I N rapid succession, three States have recently
passed legislation allowing and encouraging
private corporations under public supervision to enter
into the field of neighborhood redevelopment. On
April 29, New York State enacted the "Urban
Redevelopment Corporations Law." Michigan followed suit by adopting similar legislation on June 16,
and the Illinois " Neighborhood Redevelopment Corporation Law" was signed by the Governor on July 9.
With the passage of this legislation the machinery
has been created for tackling one of the major problems of American cities: the conservation of residential neighborhoods which are threatened by blight
and decay.
Only in recent years have public and private
organizations, operating in the fields of real estate,
mortgage finance, and city planning, made a concentrated effort to study the causes and costs of
urban decay and to devise ways and means by which
it can be checked. The new State laws represent
the direct results of these efforts which have gradually progressed from the realization of the problem,
through the experimental planning stages, to the
final enactment of legislation.
CAUSES AND COSTS OF URBAN DECAY
Studies preceding these recent actions have
demonstrated that decadent and blighted city areas
have resulted from a number of causes. Primarily,
large-scale migration of residential population from
older parts of the city to rural and suburban districts was fostered by cheap transportation by car,
bus, and train, by improved roads, cheap land, and
lower tax rates in outlying areas. Secondly, business districts have not absorbed those partially
abandoned residential districts as had been anticipated because of the vertical construction of multistory buildings, and the tendency of large industry
to decentralize and move from the heart of the city
to the outskirts. Within these areas much decay
has also been due to the neglect of a few pieces of
September 1941
property acting as the nucleus from which corrosion of whole neighborhoods spreads.
The cost of urban decay is of universal interest
because of the tremendous portion of the national
wealth invested in these problem areas. This
wealth consists of the lifetime savings of the families
who own homes in such districts, of the mortgage
investments of financial institutions which represent the primary reservoirs of thrift, and of the
public money invested in schools, fire and police
protection, power lines, water systems, streets, and
other municipal facilities.
Added to the waste resultant from public utilities
not being used to capacity is the factor that the
cost of these facilities becomes increasingly higher
in the more decadent areas. For instance, the
annual cost for fire protection in Cleveland, according to a recent survey, was $17.50 per capita in the
slums as compared with $2.50 in other parts of the
city; police protection in these districts was $12 per
capita as compared with $4 in the balance of the
city.
Further than this, cities are facing increasing financial difficulties because of shrinking tax returns—
property owners in blighted areas are no longer able
to meet their tax obligations because their properties
no longer yield sufficient incomes. In order to
appreciate the seriousness of the declining tax revenue, it must be kept in mind that the major source
of income for most American cities is the real property
tax. Naturally a loss in revenue from one city district must result in an increase in tax rates in other
districts.
Finally, the inadequacy of the poorly planned and
blighted city areas touches every citizen regardless
of where he lives, works, or plays. For example, the
waste of time and money in the transportation and
delivery of commodities due to traffic congestion
necessarily tends to raise prices. If the community
offers nothing in the way of parks, swimming pools,
or playgrounds, the living standard of every city
dweller is lowered.
415
These illustrations show several of the improvements which have been, or are being, made in t h e Waverly district of Baltimore,
Maryland, under t h e Master Conservation Plan designed to rehabilitate this neighborhood and prevent further decay. Whitelined portions are those areas which the Plan cites as depreciated a n d it is notable t h a t m a n y of the newly-improved properties
lie in these sections. T h e Baltimore City Planning Commission, which from the s t a r t has demonstrated a sympathetic a t t i t u d e
toward the objectives, has recognized the slum problem to the south of the area and is contemplating steps necessary to prevent
further encroachment of this undesirable element.
Significant results h a v e been reported by the H O L C from the conservation project. During the second year of t h e program
the n u m b e r of paid-in-full loans in the area nearly doubled while the ratio of H O L C borrowers in default dropped by more t h a n
50 percent.
Probably the most outstanding recent development has been the utilization of vacant land in t h e northeast section by the
development of a project for 118 dwelling units at a cost of approximately $500,000. All this is concrete proof of a new a t t i t u d e
on t h e p a r t of property owners—a vital necessity if the ultimate objectives of the program are to be accomplished.
416
Federal Home Loan Bank Review
WAVERLY: A S T E P TOWARD SOLUTION
Following upon the study of urban decay, the
planning aspects of neighborhood conservation
programs have likewise been explored. Some time
ago, the Federal Home Loan Bank Board cooperated
in the undertaking of a survey of Waverly, a neighborhood area in Baltimore in danger of blight infection. Complete plans were made for the redevelopment of this area including major and
minor repairs, remodeling, modernizing, and landscaping of all depreciated properties; the formation
of interior playgrounds; and the revision of zoning
and street patterns. The survey and the general
conservation project for Waverly l present a practical example on which redevelopment corporations
in the three States which now have adopted enabling
legislation may draw. Another similar survey in
which the Federal Home Loan Bank Board is
cooperating is under way for the Woodlawn district
in Chicago, and mutual savings banks have developed
extensive projects for the redevelopment of certain
sections of Manhattan.
M A I N PROVISIONS OF THE N E W YORK STATE L A W
The new State laws set up definite procedures
for carrying out "Waverly" plans in the cities of
their States. Since the laws are basically similar
in purpose, organization, and content, the important
sections of the New York State "Urban Redevelopment Corporations Law" are outlined below as an
example:
A redevelopment corporation either ma}7 be formed
for the specific purposes of the law or may be a
corporation already in existence. Before a corporation may begin any activity, a complete and detailed plan of operations must be submitted to, and
receive a certificate of approval from, both a planning commission and a supervising agency, appointed by the governing body of the city, if none
is already established. Operations under the plan
require that city authorities declare the "area" to
be substandard or necessarily or advisedly in need
of preservation. In New York State the "area"
must be not less than 100,000 square feet in size
or the equivalent of a New York City block 200
feet by 500 feet. In addition to complete detailed
specifications of the plan, there must also be listed:
cdmplete financial arrangements, public facilities
> See "Waverly—A Study in Neighborhood Conservation," Federal Home
Loan Bank Board, 1940.
September 1941
available in the area, available dwellings at similar
rents for persons inconvenienced by the redevelopment, and the certification of the capability of the
persons handling the job.
A plan for redevelopment does not necessarily
involve complete demolition of all buildings but may
be a combination of remodeling and rebuilding together with demolition for parks and playgrounds.
There are no restrictions as to types of building
to be included in the area, whether residences,
stores, or office buildings. This gives ample leeway
for planners to take full advantage of the opportunity
to build any type of structure which will be best
suited to the needs of the neighborhood, and from
which will be derived the greatest benefits for the
general public.
After the certificate of approval has been issued,
the corporation then works hand-in-hand with both
of the local agencies, up to and until the project is
completed, submitting from time-to-time audited
statements of condition and reports of progress.
This check, of course, protects the public interests
involved.
The corporation may acquire land by purchase,
gift, grant, lease or condemnation from private
owners or from the city, in exchange for cash,
stocks, income debentures, mortgages, or other
securities. In order to initiate condemnation proceedings, however, the corporation must own or
control 51 percent of the site by area and assessment. Authority is vested in the local legislative
body to set up a "tax-freezing" period not to exceed
10 years which would protect the corporation
against any increase in taxes above the level at the
time of acquisition of the property.
The corporation is limited to a maximum dividend
payment for any dividend year during which it is
entitled to the "tax freezing" protection. The Act
defines the maximum dividend as 5 percent of the
total development cost less any amounts payable
during the dividend year as interest on any indebtedness of the corporation.
Equities in the corporation secured by a first
mortgage on the real property of the corporation
are legal investments for all municipal corporations,
insurance companies, trustees and fiduciaries, trust
companies, savings banks, and savings and loan
associations, provided the principal amount does not
exceed the maximum limits set by any other law
governing these institutions. With regard to investments secured by FHA-insured mortgages of
the corporation, these limits are of course waived.
4I7
T H E MICHIGAN AND ILLINOIS LAWS
The Michigan "Urban Redevelopment Corporations Law" is largely patterned along the lines of the
New York State Law but it applies only to cities
having a population in excess of 500,000 (Detroit is
the only city in this classification). There are no
restrictions regarding the size of the "area" except
that it must be sufficient to allow its redevelopment
in an efficient and economically satisfactory manner.
The Illinois "Neighborhood Redevelopment Corporation Law" differs from the other two State laws
in several ways. I t provides for the governing body
of a city to appoint a "redevelopment commission"
which authorizes and supervises the work of the
operating corporation—in this case authority is
vested in one single agency. I t is the only law
which provides that the predominant primary racial
group of the present inhabitants of an area must not
be displaced by the redevelopment plan. Dependent
upon the control or ownership of a specified proportion of the total property within the area as outlined
by the Act, the redevelopment corporation may,
with the approval of the redevelopment commission,
institute condemnation proceedings. No tax exemptions are provided for redevelopment corporations,
nor are they limited as to dividend payments.
A plan for redevelopment must devote 10 percent
of the area to parks and must provide funds for their
upkeep during the existence of the corporation. No
more than 10 percent of the area may be devoted to
use for other than residential buildings except by
special petition.
In cities having a population of 500,000 or more,
an area may be not more than 80 acres nor less than
two city blocks: in cities having a population of less
than 500,000, an area may be not more than 40 acres
nor less than one city block, except by special
authorization.
In California a similar measure is before the Legislature and it is reported that plans are under way for
future legislation in Massachusetts, Ohio, Minnesota,
and Texas.
A T I M E L Y ACTION
Legislation for the encouragement of urban redevelopment is particularly timely because it is
related to the present emergency as well as to the
economic problems which will arise as an aftermath
of the defense program. Its immediate importance
lies in the contribution which the redevelopment of
urban substandard areas may make in providing
adequate housing facilities in defense communities,
418
particularly if large residential dwellings are subdivided into several smaller units. Its long-range
significance derives from the fact that the rebuilding
of American cities probably will play an important
role in any post-defense plans for the adjustment of
our present war economy to peace-time pursuits.
While we are today preoccupied by the immediate
needs of the armament program, the more distant
task of readjustment will tax our best abilities, and
urban redevelopment may well be one of the major
channels into which the man-power and material*
resources released from the defense effort will be
directed.
The Economic Position of Residential Real Estate
•
T H E value of all real estate in the United States
in 1930 was $314,200,000,000, and nonfarm
residential property, valued at $122,600,000,000,
constituted the largest single item in the total real
estate structure. By 1934, the value of all real
property had fallen approximately one-third to
$203,600,000,000.. .The 12 million nonfarm families—
slightly more than one-half of all nonfarm families—
which did not own their homes paid an aggregate
annual gross rent in 1929 of $4,600,000,000. At the
beginning of 1934, the estimated annual rent bill had
declined to $3,200,000,000.
These are some of the conclusions reached in a
standard work on residential real estate, published
by the National Bureau of Economic Research, 1
and based on a comprehensive analysis of values and
rents in relation to family incomes, mortgage indebtedness, financing, and construction in the residential
field. Most of the data presented in this study cover
the years 1930, for which Census results were
available, and 1934, for which the "Financial Survey
of Urban Housing" provided pertinent information
for at least a representative number of cities.
The forthcoming findings of the 1940 Housing
Census will supply more up-to-date statistics. This,
however, does not invalidate the usefulness of the
present study as a source and reference book and as
a basis for analysis in a field in which scientific
exploration of important economic relations has
been sorely lacking. The detailed geographical
breakdowns of all data should aid local research.
i "Residential Real Estate: Its Economic Position as Shown by Values, Rents,
Family Incomes, Financing, and Construction, together with Estimates for all
Real Estate," by David L. Wickens. National Bureau of Economic Research,
New York, 1940.
Federal Home Loan Bank Review
Repairing Homes for Defense
•
P R O P E R T Y owners who will repair and
modernize their houses to provide homes for
defense workers and their families are now offered the
advice of architects and technicians—without cost.
A new service recently established through the
office of the Defense Housing Coordinator and the
Home Owners' Loan Corporation is now in operation
in key defense areas where the housing shortage is
acute. Through its facilities, it is hoped to make
15,000 "extra rooms" and apartments available in
the near future.
Home owners can apply to local Homes Registration Offices for the aid of housing experts, who will be
furnished through the HOLC. Homes with unused
space which can be converted into suitable living
quarters will be inspected and estimates of the cost
of remodeling will be made without charge. The
expenses of remodeling, of course, will have to be
borne by property owners. The HOLC technicians
will estimate the amount of income which might
logically be expected and home owners will be assisted
both in obtaining financing of proposed improvements
and the services of contractors who will carry out the
work at a reasonable fee.
President Roosevelt has authorized the use of
$100,000 from his emergency fund to employ fee
technicians to assist the HOLC's salaried staff, which
in the past few years has directed the reconditioning
of more than 550,000 homes.
In announcing the program, the Defense Housing
Coordinator pointed out three major reasons for
property owners to cooperate in this effort: They
will be contributing to the defense effort in a practical
and effective way; they will derive new incomes from
their properties; and they will improve the underlying
value of their properties.
I t is believed that many home owners have been
willing to utilize extra rooms and floors but their
places are not properly equipped at the present time
and they have not known how to proceed. Under
the new program, they will be furnished with professional advice and direction. I t is estimated that
during the last war, 185,000 housing units were provided through conversion of existing houses.
The Coordinator said that the conversion and
modernization of existing properties will ease the
strain on the material market. Far less material
in the critical brackets is necessary to provide accommodations through conversion than through new
construction.
September 1941
Members of the Federal Home Loan Bank System
can participate in this new program by assisting in
the financing arrangements for the necessary reconditioning and by giving added publicity to the campaign wherever possible. Contacts may be made
with local Homes Registration Offices to ascertain
when such projects will be undertaken.
Erratum
The attention of REVIEW readers is directed to
Table 1 on page 368 of the August R E V I E W in the
article entitled " Year-end reports provide new data
on association operations." In the 1940 column of
selected operating ratios for Federal associations, two
incorrect figures appeared in the section on operating
expenses: (1) the ratio of compensation expense to
gross operating income should have been listed as
" 13.10" percent; and (2) the ratio of total operating
expense to gross operating income should have read
"28.10" percent.
Directory of Member Institutions
I. INSTITUTIONS ADMITTED TO MEMBERSHIP
IN THE FEDERAL HOME LOAN BANK SYSTEM
BETWEEN JULY 16 AND AUGUST 15, 1941
DISTRICT NO. 3
PENNSYLVANIA:
Pittsburgh:
The Troy Hill Building & Loan Association of Allegheny City.
DISTRICT NO. 4
ALABAMA:
Mobile:
Home Savings & Loan Association, Francis Street.
GEORGIA:
Decatur:
DeKalb County Federal Savings & Loan Association, 117 Clairmont
Street.
DISTRICT NO. 8
IOWA:
Boone:
Hawkeye Building & Loan Association, Eighth and Story Streets.
DISTRICT NO. 9
TEXAS:
Cleburne:
Johnson County Building Association.
II. FEDERAL SAVINGS AND LOAN ASSOCIATIONS
CHARTERED BETWEEN JULY 16 AND AUGUST
15, 1941
DISTRICT NO. 3
PENNSYLVANIA:
Philadelphia:
Peirce School Federal Savings & Loan Association (converted from
Peirce School Building & Loan Association).
DISTRICT NO. 4
MARYLAND:
Annapolis:
Enterprise Federal Savings & Loan Association of Annapolis, 15 School
Street (converted from Enterprise Building & Loan Association of
Annapolis, Maryland, Inc.).
NORTH CAROLINA:
Greensboro:
Home Federal Savings & Loan Association of Greensboro, 113 North
Greene Street (converted from Home Building & Loan Association).
(Continued on p. 1^35)
4I9
RESIDENTIAL
INDEX
BUILDING ACTIVITY
BY YEARS
300
AND SELECTED INFLUENCING
1935-1939 = 100
FACTORS
BY MONTHS
INDEX
300
250
250
rw
200
i
RESIDENTIAL CONSTRUCTION^
150
-
100
90
N.^
• f\
1
^
V V
Cp^VAT-...
-«
1
70
\
_LL_ ~
*V>™
//
W ^f^'
,X>^
80
J/RENTS \>
INCOME PAYMENTS'I'^S j££*
'•••\
1
_
.** „
J
150
^
• > n • •an^ft't H i i t t f ft»lr"•»»'»»••wWiit —••••••»
HBifi & E 5 S ^^*^ e ^TT*n*Tr*rT*iT^T-TTnrrTC3> ; |
i
P^£r-
-«X ~
100
^
BUILDING MATERIAL
K
,
pRir.F<i(3)
90
80
"
60
F(
ORECL
OSUR
LOAN
SVC
.ENDIltQ(6)
L
50
s^\?M
70
K-
60
V J^f~
(
200
50
(ALL N()NFARM
40
40
30
30.
20
20
SOURCEI: (1)
(2)
(3)
(4)
(5)
(6)
1930
'31
'32
F EDERAL HOME _OAN B/iNK BOARD (U.S Departnlent of L
abor rec ords)
i\ ATIONAL. INDUSnrRIAL C DNFERE NCE B04 RD
L . S. DEP/
\RTMEN"r OF Lfi BOR
MMERCl
L . s. DEP;
\RTMEN"r OF cc
M
F EDERAL HOME LOAN B;U K BOA
RD
F EDERAL HOME LOAN B/WK BOA
'33
'34
L, , _ ,
'35
i
J
1
"36
MLLIONS|_0ANS BY ALL SAVINGS 8 LOAN ASSNS.
'37
'38
M1LLIONS
$150,
'39
'40
'41
Monthly data for FORECLOSURES, INCOME
PAYMENTS, RESIDENTIAL CONSTRUCTION,
and SAVINGS a LOAN LENDING are
adjusted for seasonal variation
1
1
11
1939
F.H.L.B. ADVANCES OUTSTANDING
1940
1941
10
MILLIONS MORTGAGE RECORDINGS-ALL LENDERS
$500
125
+ ff\
I
TOTAL LOANi
100
75
r^\
50
CONSTRUCTION LOANS+A W A A
25
• M I . I I I I I M
0
^*
JAN. FEB. MAR APR. MAY
COST OF STANDARD SIX-ROOM HOUSE
125
1935-1939=100
I DX
NE
1501
JUN. JUL. AUG. SEP OCT. NOV. DEC.
WHOLESALE COMMODITY PRICES
1935-1939 = 100
JAN. FEB. MAR. APR. MAY
INDEX
160
JUN. JUL. AUG. SEP OCT. NOV. DEC.
INDUSTRIAL PRODUCTION
1935-19 39=100
W—\
120
100
, ! ! M 1 , I k l X.
Federal Home Loan Bank Review
((((((MONTHLY
S U R V E Y
» » »
Highlights
/. Production indexes registered in July indicate a leveling-off period ahead while adjustments are being made to turn production from
civilian goods. Installment credit curbs have been drafted to slow consumer buying and deter inflation.
A. The index of industrial production rose to 162 in July from the June index of 157.
The cost-of-living index, reflecting rising
prices, increased from 104.6 in June to 105.2 a month later.
B. Installment buyers are required to make down payments ranging from 33 7/3 percent on automobiles to 10 percent on furniture
and to complete payments within a maximum period of 18 months on these and other specified articles as well as on materials
and services in amounts of less than $1,000 used in real-estate repairs.
II. Residential construction in all urban areas throughout the United States during the first 7 months of 1941 amounted to 273,000
units,
25 percent above the activity in the corresponding period of last year. Divergent trends were evident during July in public and
private residential construction. Private dwellings were up 10 percent, while public projects were down 53 percent.
III. Building costs rose still further in July at both wholesale and retail levels.
A. Costs of both labor and materials used in building the standard house have increased 15 and 9 percent, respectively, since
July 1940, with total costs up 11 percent.
B. The combined index of wholesale building material prices is at the highest level for any month since 1925 and in July stood at
115.1 percent of its 1935-1939
average.
IV. Mortgage recordings through July amounted to more than $2,600,000,000—on
increase of 18 percent over the same 1940 period^
A. A new high for the mortgage recording series was established in July with a total volume of $443,000,000.
Every type of
lender with the exception of insurance companies reported an increase over June.
B. Loans by all savings and loan associations were down fractionally from the June peak.
Construction loans were the largest
for any month in the past decade.
Summary
•
BUSINESS activity, continuing at its high level
throughout July, was reflected in improved conditions in the home-financing and mortgage lending
fields. The largest volume of mortgage recordings
yet established in the series was registered in July.
Private building activity increased substantially from
June and foreclosures fell slightly below the level of
the preceding month.
Increasing competition for raw and finished
products has brought about an acceleration of commodity price rises during the past 5 months, bringing
the July index of wholesale commodities to the
highest point reached in more than 10 years.
Lumber prices in particular are displaying a revival of the upward spiral evidenced in the latter
half of 1940. After declining during the opening
months of this year, a leveling-off period occurred
which was followed by a noticeable stimulation in
June, and a 4-percent increase in July. The resulting index is 29 percent above the same 1940 month.
That some of the wholesale price increases in
building material lines are being passed on to the
consumer is evidenced by the rising cost of supplies
used in constructing a standard six-room frame
house. This element of home construction has risen
September 1941
9 percent, while labor rates have risen faster to a
level 15 percent in excess of July 1940.
Residential construction continued to rise to new
high levels as the impetus of emergency conditions
appears to be nullifying adequately what might
otherwise be the depressing effect of rising building
costs. During the first 7 months of this year approximately 273,000 units were built in urban areas.
An increasing share of savings and loan association
lending is for the purchase or construction of a substantial number of these dwelling units. Through
July of this year almost $570,000,000 had been
loaned in this manner, or 26 percent more than in
the same 1940 period.
[1935-1939 = 100]
Type of index
July
1941
June
1941
Residential construction i __.
. P 218.6 ' 207.4
Foreclosures (nonfarm)1._ .__
._
37.3
36.7
Rental index (NICB)
108.3
108.1
B uilding material prices
115.1
112.8
Savings and loan lending i . . . . . . _. 186.2
174.7
Industrial production i_
.
P 162. 0 ' 157. 0
Manufacturing employment J
p 136. 3 « 133. 6
•
Manufacturing pay rolls i
P 185. 0 ' 180. 8
Income payments i
P132.3 ' 130. 8
Percent
change
July
1940
+5.4
+1.6
+0.2
+2.0
+6.6
+3.2
+2.0
+2.3
+1.1
185.7
48.5
106.4
103.3
160.1
121.0
107.8
119.1
111.7
Percent
change
+17.7
—23 1
+1.8
+11.4
-\-16. 3
+33.9
+26.4
+55.3
+18.4
p - preliminary. r = revised.
i Adjusted for normal seasonal variation.
421
General Business Conditions
•
ALTHOUGH production and distribution indexes stood at all-time peaks during the month
of July, there were indications throughout the economic structure of a leveling-off period while adjustments are being made in industrial employment and
plant facilities. Ever increasing production of both
defense and nondefense commodities has reached a
point where, on the one hand, existing defense plants
have reached or surpassed " r a t e d " capacities, and on
the other, non-defense plant facilities must be tooled
to participate in defense activity or face the threat
of impeded production as a result of material
shortages. Activity can be expected to continue
on the present plane, until existing facilities engaged
in other production can be utilized in the defense
effort and industrial expansion completes its gestation period.
While the Federal Reserve Board adjusted index
of industrial production for the month of July (162)
represents a gain over the June index (157), the
increase is smaller than those of recent months.
Offsetting gains in most of the defense industries
were the output losses registered in automobile,
steel, and anthracite coal production.
Reflecting the increased tempo of activity, reports
representing 80 percent of the country's Class 1
railroads showed their gross operating revenues
during July approximated $387,086,000 or 30.8 percent above the corresponding figure a year ago.
Department store sales, another criterion of business
activity, were 24 percent greater in July than they
were in July 1940.
After the sharp decline reported in basic commodity prices the last week in June, nearly all products made up their losses early in July and advanced
generally until the second week in August when
prices weakened for a preponderance of foodstuffs.
The trend of all prices is essentially upward, however,
and the cost-of-living index (1935-1939 = 100) developed by the Bureau of Labor Statistics rose to
105.2 in July from 104.6 in the previous month.
Regulation of Installment Credit
•
I t is clear that the Federal Government is preparing against too sharp an upward curve into
inflation. Although the Emergency Price Control
Bill which has been introduced in Congress will face
considerable opposition before final enactment, a
three-pronged deterrent against inflation is being
422
sponsored by the Government: (1) increased taxation, (2) additional emphasis on the sale of defense
bonds to draw off income surpluses, and (3) a more
stringent control of installment credit to dampen
consumer demand.
The Federal Reserve Board, empowered by the
President, ordered installment credit controls put on
24 durable goods items beginning September 1.
Curbs are provided by specifying a minimum down
payment on each group of items with the stipulation
that balances on all goods be fully paid within 18
months.
A one-third down-payment is required in the
purchase of vehicles. Among other goods listed are
household appliances (20 percent down) and furniture (10 percent). I t will be noted that, whereas
formerly the allowance for a used article turned in
by the purchaser could count as some or all of the
down payment, under the new regulations down
payments will be based on the balance due after such
trade-in allowance in all transactions except the
purchase of automobiles.
Inasmuch as furniture is not a commodity in which
civilian purchases compete directly with military
requirements, it is evident that curbs are to be directed not only toward consumer goods which use
materials required for military purposes but against
installment credit in general. Cash loans and materials and services used in making repairs or improvements on existing real estate in amounts oj less than
$1000 must be paid within 18 months under the
Federal Reserve order. There are no down-payment
requirements on these latter items.
Residential Construction
[Tables 1 and 2]
•
P R I V A T E building activity in urban areas
showed an increase from 36,840 dwelling units
in June to 40,570 in July, a gain of 10 percent. This
is quite favorable in comparison with the usual seasonal decline of 8 percent experienced during this
period. All types of private construction increased
from June to July with the largest gain in multifamily dwellings. Total public construction in all
urban areas was 53 percent lower in July than in the
previous month.
During the first 7 months of 1941, nearly 273,000
residential dwelling units were placed under construction in urban areas of the United States, as
compared with 219,000 in the corresponding period
Federal Home Loan Bank Review
of last year. This rise of nearly 25 percent was the
result of a 56-percent increase in public construction
and a 20-percent gain in the number of permits for
privately financed dwellings.
As a result of the sharp increase in public construction in conjunction with the defense housing program, Government-financed units accounted for
approximately one-sixth of the total amount of
urban residential construction during the first 7
months of this year; privately financed homes of the
1- and 2-family type made up more than two-thirds
of the total.
Building Costs
[Tables 3, 4, and 5)
•
COSTS of building the standard house continued the rise which was begun a year ago,
with an increase of more than 11 percent from July
1940. Labor costs have risen 15 percent in this
period and are 19 percent above the average month
of 1935-1939. Dealers prices for materials are 9
percent higher than a year ago and 11 percent higher
than the average month of 1935-1939.
An analysis of individual communities reveals
that, during the period from May to August of this
year, costs involved in the construction of a standard
6-room frame house rose in almost all of the reporting communities. Of the 25 cities which reported
changes from M a y 1941, 20 indicated a rise of a t
least $100 in total costs; current figures for all of the
25 cities were well above the August 1940 level.
Nine of these cities report an increase of more than
$1,000 in the cost of building the standard 6-room
frame house during the past year.
The combined index of wholesale prices of building materials, as reported by the U. S. Department
of Labor, is a t the highest level for any month since
1925 and stood a t 115.1 (1935-1939=100) in July.
Lumber prices, which rose rapidly in the later
months of 1940 and tended to level off during the
first 6 months of 1941, are again on the upgrade with
an increase of 4 percent from June to July. The net
rise from July 1940 to July 1941 amounted to almost
30 percent.
New Mortgage-Lending Activity of
Savings and Loan Associations
[Tables 6 and 7]
•
N E W mortgage loans by all savings and loan
associations during July were only fractionally
below the record totals reported during the month of
June. July loans, amounting to almost $133,000,000,
were 16 percent above the corresponding month of
1940, and raised the cumulative total of loans for
this year above the three-quarters of a billion-dollar
mark.
Loans for new construction were up $700,000 over
June and aggregated almost $45,000,000—the largest
monthly total reported for any single month in the
past decade. Advances for reconditioning were 7
percent higher in July than in the previous month,
reflecting the increasing demand for these loans as a
TOTAL
LOANS
MADE BY ALL SAVINGS AND LOAN ASSOCIATIONS
UNITED STATES - BY TYPE
BY
OF ASSOCIATION
MONTHS
CUMULATIVE-AS OF JULY 31 EACH YEAR
Construction costs for the standard house
[Average month of 1935-1939 = 100]
Element of cost
Material
Labor
Total
Percent
change
July
1941
June
1941
Percent
change
July
1940
110.7
119. 3
109. 2
118. 6
+ 1.4
+ 0. 6
101. 2
103. 4
+ 9.4
+ 15.4
113. 6
112. 4
+ 1. 1 102. 0
+ 11.4
1939
1940
1941
STATE CHARTERED MEMBERS
September 1941
1939
1940 1941
NONMEMBERS
423
result of improved economic conditions and of the
efforts being made to provide additional housing
facilities in existing dwellings for defense workers.
(See announcement of new program on page 419.)
A comparison of activity during the first 7 months
of 1941 with the same period of 1940 reveals a higher
volume of lending during the current year in each of
the 12 Federal Home Loan Bank Districts. Arranged by size of increase, the Districts fall in the
following order: gains of more than 20 percent in the
Boston, New York, Portland, and Cincinnati Districts; of 10 to 20 percent in the Los Angeles, Indianapolis, Pittsburgh, and Chicago regions; and of less
than 10 percent in the Little Rock, Winston-Salem,
Topeka, and Des Moines areas.
Mortgage recordings by type of mortgagee
[Amounts are shown in thousands of dollars]
T y p e of lender
PerPerPercent
Cumulacent
cent
change
tive reof
of J u l y
from
cordings
total
1941
June
(7 months) record1941 a m o u n t
ings
Savings and loan associations
+ 2. 2
Insurance companies
-0.3
Banks, t r u s t companies- + 0 . 7
M u t u a l savings banks.__ + 2. 8
Individuals _
+ 6.0
Others
+ 7.8
Total
+ 3. 0
32. 2
8.4
24. 5
4.8
16. 1
14. 0
$850, 212
221, 831
661, 290
116,785
440, 359
370, 427
32.0
8.3
24.9
4.4
16. 5
13.9
100. 0 2, 660, 904
100.0
New mortgage loans distributed by purpose
[Amounts are shown in thousands of dollars]
July
1941
Purpose
June
1941
Percent
change
July
1940
Foreclosures
Percent
change
[Table 10}
•
Construction.
H o m e purchase
RefinancingReconditioning
Other purposes
Total
$44, 918 $44,
55, 682 55,
16,816 17,
6,022
5,
9,534
9,
207
993
891
633
916
132, 972 133, 640
+ 1.6 $39, 907 + 12. 6
- 0 . 6 40, 658 + 3 7 . 0
- 6 . 0 17, 649
-4.7
+ 6. 9 6, 115
-1. 5
-3.9
9,972
-4.4
- 0 . 5 114,301
+ 16.3
Mortgage Recordings
[Tables 8 and 9]
•
ESTABLISHING the fourth peak made so far
this year for the recording series since its inception, lenders throughout the United States recorded
mortgages in amount of $443,000,000 during July.
All mortgagee classes with the exception of insurance
companies participated in the 3-percent rise above
June activity. This volume of lending represented
a 21-percent improvement in dollar amount over
aggregate recordings during the same 1940 month.
Savings and loan associations accounted for
$142,695,000 (nearly one-third) of the total recordings during July, a proportion slightly below the share
of activity which the institutions experienced in the
corresponding month of last year, but above the
monthly average during the first 6 months of 1941.
The greatest percentage gain among institutional
lenders from June to July was made by mutual savings banks (2.8 percent). This group also attained
the largest relative improvement over the share of
business they accounted for in July 1940.
424
N O N F A R M real estate foreclosures throughout
the United States were 4 percent less in July
than in June, but inasmuch as this decline was somewhat smaller than is usually experienced during this
period, the seasonally adjusted index rose from 36.7
to 37.3 (1935-1939-100).
Contrary to what might be expected there was an
increase in foreclosure activity in areas affected by the
defense program. However, cumulative totals in
these sections for the year-to-date were still 25 percent below the corresponding period of 1940, as
compared with a decrease of 15 percent in nondefense
areas.
Foreclosure actions during the first 7 months of this
year totaled almost 37,000 cases—a 19-percent
decline from the same period of 1940 when slightly
more than 45,000 cases were reported.
Federal Savings and Loan Insurance
Corporation
[Table 12}
•
A F T E R seven years of continuous growth the
Federal Savings and Loan Insurance Corporation
had accumulated almost $30,000,000 in reserves by
the end of July, principally through interest earned
on the Corporation's investment portfolio and the
receipt of premiums from insured associations.
These reserves, together with the $100,000,000 in
capital stock outstanding, serve as a secondary bulFederal Home Loan Bank Review
wark for the protection of nearly 3,000,000 private
shareholders who have invested savings of over
$2,500,000,000 in 2,310 insured savings and loan
associations.
Aggregate reserves and undivided profits of the
individual institutions insured by the Federal Savings
and Loan Insurance Corporation totaled approximately $181,600,000 at the end of June, an increase
of about 17 percent during the fiscal year 1941. At
the same time property holdings of insured associations dropped 20 percent to a new low level of
$130,000,000. Hence, the volume of these nonliquid assets which usually bear little or no return
now amount to only 4 percent of total assets, or
considerably less than the 6-percent ratio of reserves
to total assets. At all prior fiscal-year closing dates,
real-estate holdings of insured institutions have been
greater than reserve balances.
Federal Savings and Loan
Associations
[Table 12}
•
I N line with the trend from June to July of the
past year, total assets of all Federal savings and
loan associations again showed a small decline during
this period as a result of technical changes in the
balance-sheet structure. Although substantial increases were noted for the principal asset and liability items (net first mortgages held and private
repurchasable capital), these were more than offset
by declines in cash on hand, Federal Home Loan
Bank advances, and the repurchase of approximately $3,000,000 of HOLC and Treasury investments in these institutions.
At the end of July, there were 1,456 associations
with combined assets of $2,025,000,000 operating
under Federal charter throughout the United States.
Progress in number and assets of Federals
[Amounts are shown in thousands of dollars]
Number
Class of
association
New
Converted
Total
September 1941
July 31, J u n e 30,
1941
1941
Approximate assets
July 31,
1941
June 30,
1941
639
817
639
816
$627, 402
1, 397, 618
$629, 301
1, 400, 338
1,456
1,455
2, 025, 020
2, 029, 639
Federal Home Loan Bank System
[Table 13]
•
AT the end of July the advances outstanding of
the Federal Home Loan Banks totaled $168,145,000, a decrease of $1,752,000 from the amount
outstanding in June 1941, but approximately $6,000,000 greater than at the end of July last year.
The relatively small decline from June is significant
in comparison with the usual seasonal drop at this
time of year. I t is particularly notable in the light
of the all-time high in new advances made in any
one month which was established during June.
New advances for the month aggregated $12,867,000, a decrease of 56 percent from the record June
figure. Repayments received during July totaled
$14,619,000; of this amount $8,700,000 was repaid
by the same institutions which during June had
borrowed $12,300,000.
Repayments exceeded advances in half of the
Bank Districts: Winston-Salem, Cincinnati, Indianapolis, Chicago, Portland, and Los Angeles. I t is
interesting to note the geographical pattern of this
distribution, namely that without exception in the
Southeast, the middle-eastern Districts, and the
far West repayments were greater than new advances made. The East and those Districts between
the Mississippi River and the West Coast all showed
an excess of advances over repayments, with an
accompanying increase in the volume of advances
outstanding.
The Boston District, for the second consecutive
month, showed a $l,000,000-increase in advances
outstanding. The largest monetary and percentage
declines were in the Portland Bank which showed a
drop of approximately $1,300,000 in outstanding
advances, or 16.1 percent; and the Los Angeles region
where the decline was $900,000, or 5.8 percent.
During the first seven months of 1941 the volume
of new advances was 10 percent higher than that for
the similar period last year, while repayments were 24
percent higher.
Five new members were admitted to the Federal
Home Loan Bank System during July—one Federal association, three State associations, and one
mutual savings bank. This increase was offset by
nine withdrawals representing mergers and the
elimination of inactive institutions. At the end of
July, 3,835 institutions were members of the Bank
System. Total assets of all members aggregated
$5,295,000,000.
425
Table 7.—Estimated number and valuation of new family dwelling units provided in all urban areas
of the United States, July 1941
[Source: X S. Department of Labor]
L
[Amounts are shown in thousands of dollars]
N u m b e r of family dwelling units
M o n t h l y totals
T y p e of construction
July
1941
P r i v a t e construction
June
19413
P e r m i t valuation
J a n . - J u l y totals
Julv
1940
1941
M o n t h l y totals
July
1941
1940
June
19413
Jan .-July
July
1940
1941
129, 283
5, 798
19, 591
122, 158
5, 926
12, 599
100, 502
4, 805
10, 310
41, 396 26, 467
17, 372
32, 266
14, 388
T o t a l u r b a n construction 45, 324 47, 034 36, 631 272, 660 218, 644
1
2
3
1940
40, 570 36, 840 31, 580 231, 264 192, 177 $154, 672 $140, 683 $115, 617 $860, 157 $691, 673
172, 044
172, 949
130, 005
31, 636 30, 161 25, 774 180, 178 149, 805
1-family dwellings
2,221
2,209
1,841 14, 083 11,076
2-family dwellings x__
2
6, 713 4 , 4 7 0
3-and more-family dwellings
3,965 37, 003 31, 296
Public construction
totals
4,754
10, 194
5,051
718, 167 572, 473
35, 917 27, 662
106, 073 91, 538
132, 537
78, 342
992, 694 770, 015
Includes 1- and 2-family dwellings combined with stores.
Includes multifamily dwellings combined with stores.
Revised.
Table 2.—Estimated number and valuation of new family dwelling units provided in all urban areas,
in July 1 9 4 1 , by Federal Home Loan Bank District and by State
[Source: U. S. Department of Labor]
[Amounts are shown in thousands of dollars]
All residential dwellings
Federal H o m e Loan B a n k District
and State
N u m b e r of family
dwelling units
Permit
All p r i v a t e 1- a n d 2- family dwellings
valuation
N u m b e r of family
dwelling units
Permit
valuation
July
1941
Delaware
Pennsylvania
West Virginia _ - _
_ __
36, 631
$172, 044
$130, 005
33, 857
27, 615
$135, 081
$105, 307
2,721
9,338
10, 747
1,846
1,733
8,478
7,483
1, 172
101
1, 131
83
199
35
3,802
235
4,319
336
600
46
4,719
303
4,551
292
717
165
625
77
906
87
141
10
499
98
848
80
173
35
3, 198
235
4,063
336
600
46
2,380
295
3,666
286
691
165
3,732
19, 858
15, 472
3,313
2,680
14, 747
11, 898
1, 111
2,621
6,201
13, 657
4,462
11,010
1,402
1,911
952
1,728
6,081
8, 666
4, 192
7,706
4,766
No. 3'—Pittsburgh
July
1941
1,460
3,235
N e w Jersey
New York
July
1940
4, 695
No. 2—-New York
July
1941
828
77
1,021
87
141
10
Connecticut
Maine
Massachusetts
New H a m p s h i r e
R h o d e Island
Vermont - -
July
1940
2, 164
No. 1—-Boston _
July
1941
45, 324
U N I T E D STATES
July
1940
1,799
20, 132
7,434
2,252
1,336
9,755
6, 113
29
4,497
240
14
1,250
535
138
19, 067
927
66
5,516
1,852
29
1,990
233
14
1, 107
215
138
8,715
902
66
5, 164
883
July
1940
,
426
Federal Home Loan Bank Review
Table 2.—Estimated number and valuation of new family dwelling units provided in all urban areas,
in July 1 9 4 1 , by Federal Home Loan Bank District and by State—Continued
[Amounts are shown in thousands of dollars]
All private 1- and 2-family dwellings
All residential dwellin gs
Federal H o m e Loan B a n k District
and State
N u m b e r of family
dwelling units
Permit
valuation
N u m b e r of family
dwelling units
Permit
valuation
Julv
1940
July
1941
July
1940
July
1941
$20, 369
4,426
3,736
$14, 904
$12, 755
1, 130
3, 135
3,778
2, 553
2,673
2,212
616
5,385
2,832
3,065
4,250
2,803
1,551
1,809
932
3, 127
494
260
776
661
806
502
237
690
448
261
799
506
398
521
196
607
1,075
1,435
3,258
1, 555
2, 664
1,442
561
2,914
981
1, 853
2,990
1, 213
1, 286
1, 361
517
2,554
3, 175
12, 462
12, 141
2,682
2, 184
11, 855
9, 136
272
2,020
594
288
2,007
880
763
10, 046
1,653
703
9, 105
2,333
272
1,838
572
273
1,542
369
763
9,481
1,611
674
7, 587
875
3,885
2,782
17, 371
11, 567
3,861
2,752
17, 318
11,492
1,020
2,865
779
2,003
3, 942
13, 429
2,807
8, 760
1,008
2,853
771
1, 981
3,913
13, 405
2, 796
8, 696
2,671
2, 680
13, 849
11, 569
2,515
2,013
13, 453
9, 537
1,824 1
847
2,019
661
10, 481
3,368
8,915
2, 654
1,799
716
1,381
632
10, 402
3,051
6,970
2, 567
2,224
1, 943
8,545
7,249
1,787
1,783
7, 193
6, 786
949
690
445
50
90
491
742
554
55
101
3,515
2,974
1,576
179
301
1,844
3,040
1,909
174
282
562
671
418
50
86
478
709
454
50
92
2,289
2,932
1, 504
179
289
1, 807
2,952
1,621
156
250
N o . 9—Little Rock _
5,244
3, 180
15, 835
8,346
3,093
2,511
8, 526
6, 709
Arkansas
Louisiana
Mississippi
New Mexico
Texas
221
2, 106
296
134
2,487
176
460
201
126
2, 217
573
7,346
526
343
7,047
399
1,375
349
318
5,905
215
405
296
123
2,054
176
426
201
118
1, 590
561
1,216
526
323
5,900
399
1,233
349
305
4,423
1,466
1, 067
4,296
3, 168
1,402
1,032
4, 176
3,091
252
457
237
520
286
219
166
396
810
1,014
905
1,567
868
562
615
1, 123
236
421
225
520
258
212
166
396
780
958
871
1,567
796
557
615
1, 123
2, 163
1,311
7,370
4,312
1,737
1,231
6, 155
4, 175
96
170
376
234
1,221
66
150
122
291
199
497
52
330
606
1,326
796
4,067
245
360
379
912
669
1, 789
203
92
90
321
234
934
66
126
116
258
199
484
48
318
296
1, 178
796
3,322
245
348
366
837
669
1, 762
193
6,012
5, 306
21, 506
17, 631
4,943
4,624
18, 521
16, 132
232
21, 043
231 1
642
16, 900
89
73
4,825
45
74
4,522
28
217
18, 073
231
215
15, 831
86
July
1941
July
1940
7, 148
6,935
$21, 482
526
1, 187
993
1,036
810
812
262
1,522
1, 167
905
1,302
1, 145
519
708
353
836
N o . 5—-Cincinnati
2,886
Kentucky
Ohio
Tennessee
No. 4-—Winston-Salem
__
Alabama
District of Columbia
Florida _
Georgia
MarylandN o r t h Carolina
South Carolina __
Virginia
N o . 6-—Indianapolis
Indiana
Michigan
No. 7—Chicago
Illinois
Wisconsin
N o . 8—Des Moines _ _
Iowa
Minnesota
Missouri
North Dakota
South D a k o t a
No. 10—Topeka
Colorado
Kansas
Nebraska
Oklahoma
N o . 11—Portland
Idaho
Montana
Oregon
Utah
Washington
Wyoming
- -
No. 12—Los Angeles.
Arizona. __
CaliforniaNevada
September 1941
_
85
298
4, 976
5, 882
32
45 1
July
1941
July
1940
427
Table 3.—Cost of building the same standard house in representative cities in specific months
N O T E . — T h e s e figures are subject to correction
[Source: Federal H o m e Loan Bank Board]
Cubic-foot cost
Federal H o m e Loan Bank
district and city
1940
Aug.
No. 3 — P i t t s b u r g h :
Wilmington, Del
Harrisburg, P a
Philadelphia, P a
Pittsburgh, P a
Charleston, W. Va
Wheeling, W. Va
1941
Aug.
T o t a l cost
1941
Aug.
$0.
.
.
.
.
.
276
294
275
304
261
279
$0.
.
.
.
.
.
217
247
242
256
242
253
$6, 636
7, 050
6, 598
7,301
6,274
6, 706
No. 5—Cincinnati:
Lexington, K y
Louisville, K y
Cincinnati, Ohio
Cleveland, Ohio
Columbus, Ohio _ _
Memphis, Tenn
Nashville, Tenn
.
.
.
.
.
.
.
247
279
246
302
265
257
244
.
.
.
.
.
.
.
232
226
232
287
240
223
203
5,931
6,704
5, 906
7, 249
6,370
6, 177
5, 852
No. 9—Little Rock:
Little Rock, Ark
New Orleans, La - _
Jackson, Miss
Albuquerque, N . M
Dallas, Tex
Houston, Tex
San Antonio, Tex
.
.
.
.
.
.
.
221
264
271
297
284
284
279
.
.
.
.
.
.
.
214
238
254
261
226
237
228
.
.
.
.
.
305
242
266
296
299
.
.
.
.
.
258
219
222
260
282
7, 330
5, 812
6,383
7,093
7, 165
Feb.
May
2
5, 305
6,339
6,504
7, 123
6,821
6,809
6,692
No. 12—Los Angeles:
Phoenix, Ariz
Los Angeles, Calif
San Diego, Calif
San Francisco, Calif
Reno, Nev
1940
$6, 189
6,737
6,304
6,870
6,296
6, 612
2
5,673
6, 616
5,680
7, 170
6, 147
6, 008
5,706
2
$6, 033
6,737
6,304
6,775
6, 133
6,428
2
5,555
6,285
5,732
6,877
5,965
6, 064
5, 537
1939
1938
1937
Aug.
Aug.
Aug.
217
916
816
155
808
071
$5, 416
5,724
5,485
6,440
5,813
6,314
$5, 898
5, 682
5,416
6,487
5, 905
6,042
$5, 811
5, 995
5, 972
6, 786
6, 282
6,503
5, 483
5,444
5, 743
6., 949
5., 912
5, 528
5, 298
5,574
5, 423
5, 564
6,888
5,754
5,350
4,883
5,715
5,230
5,500
6,492
5, 618
5,269
4,956
5,325
5, 189
5,836
6,404
5,919
5,299
5,090
5,702
5,461
6,056
6,981
6,429
5, 467
5, 504
Nov.
2
$5, 986
6,554
6,309
6,434
5,963
6, 525
2
Aug.
$5,
5,
5,
6,
5,
6,
5, 194
6,207
6,232
7,015
6, 713
6,687
6, 583
2
5, 193
6,081
6,065
6,977
6, 622
6,621
6,573
5,215
6,021
5,925
6, 762
6,022
6,501
5,835
5, 137
5,702
6,084
6,262
5,417
5,681
5,479
5,225
5, 641
5, 894
6, 398
5,431
5,882
5,867
5, 150
5, 865
6,079
6, 648
5,888
5,993
6,055
5, 208
5,865
6,086
6, 690
6, 068
6, 162
6, 231
6,937
5,559
6, 088
6, 665
7, 155
6,898
5, 514
6,071
6, 363
7, 003
6, 774
5, 504
6, 103
6,352
6, 739
6, 199
5,254
5, 320
6,250
6,777
6, 129
5,231
5, 605
6,314
6, 574
6,489
5,704
5, 834
6,329
6, 560
6, 802
6,001
6, 144
6,452
6, 666
1
The house on which costs are reported is a detached 6-room home of 24,000 cubic feet volume. Living room, dining room, kitchen, and lavatory on first floor; three
bedrooms and bath on second floor. Exterior is wide-board siding with brick and stucco as features of design. Best quality materials and workmanship are used
throughout.
The house is not completed ready for occupancy. It includes all fundamental structural elements, an attached 1-car garage, an unfinished cellar, an unfinished attic,
a fireplace, essential heating, plumbing, and electric wiring equipment, and complete insulation. It does not. include wall-paper nor other wall nor ceiling finish on interior
plastered surface, lighting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades.
Reported costs include, in addition to material and labor costs, compensation insurance, and allowance for contractor's overhead and transportation of materials
plus 10 percent for builder's profit.
Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks and driveways; they do not include
architect's fee, cost of building permit, financing charges, nor sales costs.
In figuring costs, current prices on the same building materials list are obtained every three months from the same dealers, and current wage rates are obtained from
the same reputable contractors and operative builders.
2 Revised.
Table 4.—Index of building costs for the standard house
[Average m o n t h of 1935-1939 = 100]
Element of cost
Material
Labor
_
Total cost-
428
July
1941
June
1941
May
1941
Apr.
1941
Mar.
1941
Feb.
1941
Jan.
1941
Dec.
1940
Nov.
1940
Oct.
1940
Sept.
1940
Aug.
1940
July
1940
110. 7
119. 3
109.2
118.6
108.8
117.0
108.7
116. 1
108.0
115.3
107.8
115. 1
106.6
114.5
105.9
112.5
104.6
109.8
103.4
106.9
101.9
104.8
101.4
103.6
101. 2
103.4
113. 6
112.4
111.6
111. 2
110.4
110.2
109.3
108. 1
106.4
104.6
102.9
102. 1
102.0
Federal Home Loan Bank Review
Table 5.—Index of wholesale price of building materials in the United States
[1935-1939=100]
[Source: U. S. D e p a r t m e n t of Labor]
All building m a t e rials
Period
Cement
P a i n t and
paint m a terials
Plumbing
and heating
Structural
steel
101. 1
Lumber
100. 4
100. 2
1939: July
104. 2
103. 5
96. 9
Other
3
2
8
2
4
9
99.2
99. 2
99.3
99. 3
99.3
100.3
99.4
99.4
99.4
99. 5
99.7
99. 8
105.6
109.6
119.3
127.4
130. 8
132. 3
104.0
103. 5
103.4
104.3
105.4
105.0
105.8
105.8
105.8
105.8
105.8
105.8
103. 5
103.5
103.5
103. 5
103. 5
103.5
101. 2
101.0
101. 1
101. 4
101. 9
102. 2
111. 2
110. 9
111. 1
111.8
112. 1
112. 8
115. 1
100. 5
100.6
100. 7
100.9
101. 1
101. 8
103. 7
99.7
99. 7
99.7
99.9
100.4
100. 9
101. 1
131.9
130. 5
130.0
130.0
130. 1
131. 0
136. 2
106.6
106. 5
107.5
109. 1
109.8
111. 0
112. 6
105.8
108.0
108.8
109.0
109.0
109. 2
109. 3
103.5
103. 5
103.5
103.5
103.5
103. 5
103. 5
102.6
102.6
103.0
103.7
104. 1
104. 8
106. 4
+ 2.0%
+ 11.4%
+ 1.9%
+ 4. 5%
+ 0. 2 %
+ 1.7%
+ 4. 0 %
+ 29. 0 %
+ 1.4%!
+ 8. 3 % |
+ 0. 1 %
U03.
1
104.
UQ6.
109.
110.
110.
1940: July
August
September
October
November
December
1941: J a n u a r y
February
March
April
May
June
July
Change:
July 1941-June 1941.
July 1941-July 1940_
1
Brick and
tile
+ 3.3%:
0.0%
0.0%
+ 1.5%
+ 5. 1 %
Revised on t h e basis of a previous r e v i s i o n of lumber figures.
Table 6.—Estimated volume of new home-mortgage loans by all savings and loan associations, by
purpose and class of association
[Thousands of dollars]
Class of association
Purpose of loans
Period
Construc- H o m e purchase
tion
Refinancing
Reconditioning
Loans for
all other
purposes
Total
loans
Federals
State
members
Nonmembers
1939.
$301, 039
$339, 629
$182, 025
$59, 463
$104, 227
$986, 383
$400, 337
$396, 041
$190, 005
J a n .-July __.
July
160, 537
26, 865
184, 384
29, 638
102, 718
15, 353
33, 171
5, 133
58, 318
8, 183
539, 128
85, 172
215,910
34, 055
215, 985
34, 146
107, 233
16, 971
1940_
398, 632
426, 151
198, 148
63, 583
509, 713
483, 499
206, 367
J a n . - J u l y __
July
August
September..
October
November..
December--
212, 501
39, 907
42, 488
39, 417
41,610
32, 584
30, 032
238,
40,
40,
40,
40,
33,
31,
526
658
567
947
771
875
465
119,047
17, 649
17, 762
15, 483
16, 840
14, 441
14, 575
36, 348
6, 115
6,079
6,283
5, 756
4,869
4,248
66, 240
9,972
10, 726
9,645
9,423
8,798
8,233
672, 662
114,301
117,622
111,775
114,400
94, 567
88, 553
288,
48,
50,
46,
48,
38,
37,
010
676
305
480
307
896
715
267,
45,
46,
45,
46,
40,
36,
608
414
807
988
224
143
729
117,044
20, 211
20, 510
19, 307
19, 869
15, 528
14, 109
255, 181
26, 662
26, 483
33, 250
38, 686
40, 975
44, 207
44, 918
314, 643
27, 809
30, 283
41, 784
48,311
54, 781
55, 993
55, 682
114, 870
13, 645
14, 204
16, 903
16, 905
18, 506
17, 891
16,816
36, 075
3,784
3,573
4,765
6,368
5,930
5,633
6,022
65, 359
8, 540
7,787
8,460
10, 361
10, 761
9,916
9,534
786,
80,
82,
105,
120,
130,
133,
132,
336,
34,
35,
45,
51,
55,
57,
56,
243
360
645
365
371
396
542
564
329,
33,
35,
43,
50,
54,
54,
55,
179
947
301
947
956
495
857
676
120, 706
12, 133
11,384
15, 850
18, 304
21, 062
21,241
20, 732
113,065
1, 199, 579
1941
J a n . - J u l y __.
January
February
March
April
May
June
Julv
September 1941
128
440
330
162
631
953
640
972
429
Table 7.—Estimated volume of new home-mortgage loans by all savings and loan associations, by
Federal Home Loan Bank District and class of association
[Amounts are shown in thousands of dollars]
New loans
Federal H o m e Loan B a n k District a n d class of association
1941
July
1941
June
Percent
change,
J u n e 1941
to J u l y
1941
New
loans,
July
1940
Cumulative j new loans (7 months)
Percent
change,
July 1940
to J u l y
Percent
1941
1940
1941 1
change
$132, 972
United S t a t e s : T o t a l
56,564
Federal
55, 676
State m e m b e r - J
Nonmember
20,732
$133, 640
57,542
54,857
21,241
-0.5
-1.7
+ 1.5
-2.4
$114,301
48, 676
45,414
20,211
+ 16.3
+ 16.2
+ 22. 6
+ 2. 6
District N o . 1: T o t a l
Federal _
S t a t e member__
Nonmember
15,083
5, 164
7,902
14,493
4,974
7,503
2,016
+ 4.1
+ 3. 8
+ 5.3
+0.0
11, 191
4,002
5,332
1, 857
+ 34. 8
+ 29. 0
+ 48. 2
+ 8.6
80, 152
27,576
40,517
12,059
60,
20,
28,
10,
021
967
986
068
+
+
+
+
33. 5
31. 5
39. 8
19.8
District N o . 2: T o t a l
Federal
S t a t e member__
Nonmember
13,412
4,032
4,405
4,975
14,076
3,920
3,978
6, 178
-4.7
+ 2. 9
+ 10.7
-19. 5
10,602
2,750
3,508
4,344
+
+
+
+
26.
46.
25.
14.
75,290
21,208
22, 851
31,231
58,
17,
17,
23,
735
710
026
999
+
+
+
+
28. 2
19.8
34.2
30. 1
District N o . 3 : T o t a l
Federal _ _
S t a t e member__
Nonmember
10, 569
4,086
2,548
3,935
10,991
4, 849
2,738
3,404
-3. 8
-15.7
-6.9
+ 15. 6
9, 145
3,600
2, 189
3,356
+
+
+
+
15. 6
13.5
16.4
17.3
61,829 1
24,047
16,338
21,444
53,
20,
13,
19,
469
481
347
641
+ 15. 6
+ 17.4
+ 22.4
+ 9.2
District No. 4 : T o t a l
Federal
S t a t e member__
Nonmember
17, 484
8,333
7,543
1,608
18, 004
8,845
7,752
1,407
-2.9
-5.8
-2.7
+ 14.3
16, 146
8,074
6,431
1,641
+ 8.3
+ 3.2
+ 17.3
-2.0
106, 627
51,763
45,577
9,287
98,
47,
38,
12,
390
123
442
825
+ 8. 4
+ 9. 8
+ 18.6
-27. 6
District N o . 5: T o t a l
Federal,
S t a t e member-..
Nonmember
22, 643
8,448
11, 106
3,089
23, 015
8,367
11,322
3,326
-1.6
+ 1.0
-1.9
-7. 1
20, 531
7,383
9, 607
3,541
+ 10.3
+ 14.4
+ 15. 6
-12. 8
135,877
50,550
67,969
17, 358
111,898
41, 730
53, 280
16, 888
+ 21.4
+ 21. 1
+ 27. 6
+ 2.8
District N o . 6: T o t a l . ___ _ _
Federal
S t a t e m e m b e r __
Nonmember
6,530
3,342
2, 954
234
6,536
3,408
2,881
247
-0. 1
-1.9
+ 2. 5
-5.3
5,779
2,982
2,566
231
+ 13.0
+ 12. 1
+ 15. 1
+ 1.3
39, 914
20, 408
17, 934
1,572
34, 427
16, 498
15,913
2,016
+ 15. 9
+ 23. 7
+ 12.7
-22. 0
District N o . 7: Total
Federal
State member, _
Nonmember
13, 257
4,793
6,543
1,921
13, 165
5,204
5,976
1,985
+ 0. 7
-7.9
+ 9. 5
-3. 2
11,472
4,273
5,334
1,865
+ 15. 6
+ 12. 2
+ 22. 7
+ 3.0
80, 132
30, 820
37, 923
11,389
69, 328
27, 666
30, 452
11,210
+ 15. 6
+ 11. 4
+ 24. 5
+ 1.6
District No. 8: T o t a l ___ _ _
Federal
S t a t e member__
Nonmember
7,454
3,831
2,332
1,291
7,450
3,793
2,286
1,371
+ 0. 1
+ 1.0
+ 2. 0
-5. 8
6,999
3, 607
1,894
1,498
+ 6.5
+ 6. 2
+ 23. 1
-13. 8
42, 518
21,427
13, 975
7,116
41,
19,
12,
9,
803
960
701
142
+ 1. 7
+ 7.3
+ 10.0
-22. 2
District N o . 9: T o t a l
_ _
Federal __ _
State member-Nonmember
6,700
2,770
3,577
353
5,892
2,529
3,208
155
+ 13. 7
+ 9. 5
+ 11.5
+ 127. 7
5, 571
2, 149
3,228
194
+
+
+
+
20. 3
28. 9
10.8
82. 0
38, 581
16, 281
21, 284
1,016
35, 505
14, 198
19, 827
1,480
+ 8.7
+ 14.7
+ 7.3
-31.4
District N o . 10: T o t a l .
_
Federal. _
S t a t e m e m b e r __
Nonmember
4,650
2,455
1,214
981
5,150
2,835
1,252
1,063
-9.7
-13.4
-3.0
-7.7
4,920
2,517
1,061
1,342
-5.5
-2.5
+ 14.4
-26. 9
31, 474
17,316
7,455
6,703
30, 401
16, 108
6,900
7,393
+ 3.5
+ 7.5
+ 8.0
-9.3
District No. 1 1 : T o t a l
Federal
State member- _
Nonmember
4,697
3,050
1, 359
288
4,796
2,914
1,829
53
-2. 1
+ 4.7
-25. 7
+ 443. 4 |
3, 736
2, 436
1, 170
130
+ 25.7
+ 25. 2
+ 16.2
+ 121.5
29, 561
19, 410
9,252
899
24, 133
15, 070
8, 112
951
+ 22.5
+ 28.8
+ 14. 1
-5.5
District No. 12: T o t a l
FederalState member. _
Nonmember
10, 493
6,260
4, 193
40
10, 072
5,904
4,132
36
+ 4. 2
+ 6.0
+ 1.5
+ 11.1 1
8, 209
4, 903
3, 094
212
+ 27.
+ 27.
+ 35.
-81.
64, 173
35, 437
28, 104
632
54, 552
30, 499
22, 622
1,431
+ 17. 6
+ 16.2
+ 24.2
-55. 8
430
2,017 J
5
6
6
5
8
7
5
1
$786, 128 1 $672, 662
288, 010
336,243
267, 608
329, 179
117,044
120,706
+ 16.9
+ 16.7
+ 23.0
+ 3.1
Federal Home Loan Bank Review
Table 8.—Summary of estimated nonfarm mortgase recordings,* $20,000 and under, during July 1941
(Amount s
F e d e r a l Home L o a n B a n k
District
and
State
S a v i n g s & Loan
assocj ations
Number Amount
UNITED STATES
No.
51,882 $142,695
s hown
are
in
thousands
Banks and
Mutual
t r u s t companies savings banks
Insurance
companies
Number Amount
Number
Amount
of
Amount
dollars)
Indiv iduals
Number Amount Number Amount
Other
mortgagees
Number
Tot a l
Amount Number
Amount
7,602 $37,262 32,343 $103,555 5,469 $21,080 35,634 $71,456 18,180 $61,991 151,110 $443,039
per
capita
(nonfarm)
1
$4.80
|—8oston
4,787
16,135
278
1,588
1,315
5.107
2,957 10,372
2,959
6,703
760
2,703
13,056
42.608
Connecticut
Maine
Massachusetts
New Hamoshire
Rhode Island
Vermont
508
217
3,474
170
314
104
1,989
597
11,716
417
1,160
256
169
29
64
1
14
1
1,015
129
347
5
74
17
523
154
356
35
143
53
2,422
477
1,255
251
522
160
659
194
1,515
270
152
166
2,771
405
5,504
722
526
444
745
210
1,557
108
163
66
1,828
351
3,902
184
315
113
410
55
193
14
79
9
3,014
859
7,270
549
865
399
11,655
2,104
23,327
1,641
2,859
1,021
7.67
3.36
5.65
4.08
4.25
4.14
3.140
1,066
2,074
10.381
3,255
7,126
659
402
257
3.207
1,897
1,310
2.509
1,379
1,230
10.672
5,537
5,035
1.698
123
1,575
7,848
625
7,223
4,421
1,527
2,894
10.527
3,925
6,602
1.996
943
1,053
1,631
135
593
51
262
31
7,195
3,196
3,999
14.523
5,440
9,083
49,830
18,535 1
31,295
2.64
3,669
9,190
569
2,255
3,102
10,105
255"
877
2,139
4,978
1,135
4,306
10,869
31,722
22
3,131
516
71
8,155
953
28
472
69
151
1,751
354
58
2,317
727
249
8,250
1,605
17
229
9
72
800
5
64
1,750
325
137
4,423
418
15
1,001
119
40
3,992
274
204
8,900
1,765
720
27,382
3,620
6,864
18,588
1,019
4,735
2,920
8,501
52
295
4,979
9,339
2,636
7,903
18,480
49,362
585
430
754
800
379
930
291
810
810
1,369
1,506
981
1,011
1,187
501
1.874
255
242
377
633
221
360
253
284
608
1,292
1,393
1,255
549
1,097
755
853
1,610
1.400
2,601
3,125
2,374
3,133
1,308
2,929
3,222
7,114
7,750
6,092
6,834
7,052
3,328
7.950
No. 2—New York
New Jersey
New York
No. 3—Pittsburgh
_
Delaware
Pennsylvania
West Virginia
_
_
No. 4—Winston-Salem
Alabama
D i s t r i c t of Columbia
Florida
Georgia
Maryland
North Carol ina
South Carolina
Virgin ia
No. 5—Cincinnati
Kentucky
Ohio
Tennessee
No.
_
_
5—Indianapolis
529
3,295
2,319
1,788
3,851
3,358
909
2.528
122
77
343
143
35
99
54
145
527
571
1,405
777
187
474
211
584
343
93
327
580
262
292
309
617
748
586
1,137
1,291
831
936
851
2.121
25,837
918
4.500
3.942
12,532
1,152
7,057
420
_ _
297
558
800
869
1,414
1,452
401
1.073
8,639
2,813
21,944
1,080
151
508
259
517
3,083
900
545
2,562
834
1,719
8,515
2,347
275
52
295
215
792
3,100
5,318
1,589
4,658
18,403
"792
258
4,351
709
77
841
571
188
2,680
1,790
2,135
13,481
2,786
3.75
3.12
2.83
2.47
14.62
6.53
4.09
4.90
4.49
4.05
5.41
53,587
210
2,288
502
4.74
5,435
41,366
6,826
3.82
7.34
4.87
3,650
7,896
858
4,091
3,781
10,812
23
27
1,566
3,075
1,245
4,698
11,123
30,599
.2,484
I.ISS
4,789
3,107
392
455
1,877
2,214
1,345
2,435
3,303
7,004
23
27
553
1.013
831
2,214
351
894
1,081
3,517
5,148
5,975
12,443
18,156
5,019
14,301
457
2,421
2,149
7,948
30
55
2,710
5,266
1,868
8,180
12,233
3,687
1,332
10,732
3,569
362
95
1,329
492
1,278
871
5,237
2,711
30
55
1,454
1,256
3,556
2,600
1,617
251
7,298
882
8,398
3,835
3,902
9,149
693
3,296
2,534
7,222
44
127
2,586
4,193
1,826
5,422
11,585
29,409
962
1,353
1,329
153
105
1,877
3,516
3,054
407
295
109
304
229
19
32
448
1,320
1,320
80
128
697
576
1*, 162
68
131
1,880
1,331
3,631
153
227
44
""127
399
774
1,247
85
80
629
1,437
1,864
120
143
219
232
1,326
16
33
S88
738
3,943
25
28_
2,386
3,283
5,293
342
381
5,522
8,469
13,812
785
821
3.70
5.08
5.49
2.77
2.71
No. 9 — L i t t l e Rock
Arkansas
Lou i si ana
Mississippi
New Mexico
Texas
3,587
393
925
213
82
1,967
9,149
759
3,032
411
157
4,780
934
53
225
55
3
597
4,242
237
954
242
il
2,788
909
138
110
152
105
404
2,670
322
274
339
357
1,378
2,444
303
456
281
109
1,295
4,335
425
877
392
257
1,812
65.
533
105
24
2,_3_8.3. 1,085
5,500
133
1,528
235
32
3,572^
9,686
952
2,251
812
323
5,348
25,89S
1,887
6,575
1,619
814
14,901
2.57
5.25
2.50
3.08
No. |0—Topeka
2,705
5,591
288
1,439
948
2,520
1,557
2,505
976
2,826
5,474
14,881
327
791
735
852
807
1,514
1,393
1.877
40
42
142
64
186
215
686
352
144
369
III
324
327
995
331
837
6IG
239
209
493
1,242
297
302
664
.267
232
96
381
799
631
260
1.136
1,394
1,673
1,293
2.114
1,975
102
160
493
227
919
75
4,820
257
370
1,245
631
2,101
206
323
17
14
144
36
112
1,242
71
49
540
137
445
1,350
58
63
151
340
703
35
3,434
189
194
279
1,057
1,636
79
1,374
106
158
542
109
389
70
2,154
155
260
818
147
651
113
1,087
77
27
238
53
660
32
3,704
180
71
748
107
2,501
97
6,295
360
422
1,579
765
2,957
212
16,041
862
944
3,560
2,079
8,001
495
3,944
11,658
606
4,234
6,684
26,982
5,739
12,053
1,250
4,896
18,283
59,833
93
3,830
21
280
11,316
62
4
601
1
19
4,211
4
128
6,528
28
478
26,398
106
302
5,430
57
771
11,120
172
26
1,218
6
62
4,820
14
553
17,607
123
1,610
57,865
358
Indiana
Michigan
No. 7—Chicago
_ _
_
Illinois
Wisconsin
No. 8—Des Moines
_
Iowa
Minnesota
Missouri
North Dakota
South Dakota
_
Colorado
Kansas
Nebraska
Oklahoma
No.
M—Portland
Idaho
Montana
Oregon
Utah
Washington
Wyoming
__ __
No. |2—Los Angeles
Arizona
California
Nevada
_ _
. _
----185
587
30
174
557
5.13
4.47
39,171
28,852 1
10,309 |
4.35
5.01
L 4'29
3,361 1
3,652
2,972
4.895
4.46
3.11
3.75
3.57
3.36
2.83
5.01
5.30
6.36
3.25
4.78
11.44
4.80
1
8ased upon county reports submitted through the cooperation of savings and loan associations, the U. S. Savings and Loan League, the Mortgage
8ankers Association, and the American Title Assoc iation.
September 1941
431
Table 9.—Estimated volume of nonfarm mortgages recorded, by type of mortgagee
[Amounts are shown in thousands of dollars]
Savings a n d
loan associations
Insurance
companies
Mutual
savings
banks
Banks a n d
trust
companies
Individuals
Other
mortgagees
All
mortgagees
Period
Percent
Total
Number:
1940: July
August
September. _
October
November. _
December. _
Percent
46,
46,
45,
48,
39,
37,
667
706
595
145
180
984
35.3
34.7
35.5
34.8
33. 5
32. 8
6,228
6,525
6,091
6,977
5,816
5, 736
4 . 7 28,511 2 1 . 6
4 . 8 29, 137 21. 6
4 . 7 27, 924 21. 7
5.0 31, 202 2 2 . 5
5.0 25, 988 2 2 . 3
4 . 9 25, 837 2 2 . 3
34,
34,
42,
48,
52,
50,
51,
5, 523
4, 753
5, 651
6,583
7, 190
7,655
7, 602
5.0
4.4
4.5
4. 7
4.8
5.2
5. 0
Total
Percent
Total
24, 204
23,711
26, 820
30, 065
32, 148
32,769
32, 343
22.
22.
21.
21.
21.
22.
21.
1
1
6
6
4
1
4
Total
Total
Percent
Percent
Total
Percent
Combined
total
Per
cent
4,328
4,298
4,257
4,548
4,024
3,847
3.3
3.2
3.4
3.3
3.4
3.3
29,
30,
28,
30,
27,
27,
689
858
164
635
507
823
22. 4
22.9
21.9
22. 1
23.6
24. 0
16,
17,
16,
16,
14,
14,
837
178
391
975
239
680
12. 7
12.8
12. 8
12. 3
12. 2
12. 7
132, 260
134, 702
128, 422
138, 482
116,754
115, 907
100.0
100.0
100.0
100.0
100.0
100.0
3,392
2,985
3,571
4,512
5, 258
5,437
5,469
3. 1
2.8
2.9
3.2
3. 5
3.7
3. 6
28,
27,
30,
33,
35,
34,
35,
494
483
990
794
175
613
634
26.0
25.7
25.0
24. 2
23.4
23. 4
23. 6
13,
13,
14,
16,
17,
16,
18,
617
303
666
305
769
970
180
12. 4
12.4
11.8
11. 7
11.8
11.5
12. 0
109,
107,
124,
139,
150,
147,
151,
689
144
194
525
342
837
110
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
1941: J a n u a r y
F e b r u a r y . __
March.
April.
May
.
June. _
July
Amount:
1940: July
August _ _
September. _
October
November..
December, _
459
909
496
266
802
393
882
31.4
32. 6
34. 2
34. 6
35. 1
36. 0
34. 4
$118,914
121, 979
117, 928
125,009
102, 267
98, 765
32.4
32.4
33.0
32. 2
31.2
30.2
$30,
31,
29,
33,
27,
28,
602
839
401
818
900
666
8 . 3 $92,
8.4 93,
8.2 89,
8.7 98,
8. 5 82,
8 . 8 83,
658
931
051
462
971
426
25.3
24. 9
24. 9
25.3
25.4
25.5
$16,
15,
15,
16,
15,
14,
067
903
566
826
122
918
4.4
4.2
4. 4
4.3
4. 6
4. 6
$55,
56,
52,
59,
51,
51,
191
770
936
124
504
964
15.0 $53,
15. 1 56,
14. 8 52,
15. 2 55,
1 5 . 7 47,
15. 9 48,
622
394
636
734
621
885
14. 6 $367,
15.0 376,
14. 7 357,
14. 3 388,
14. 6 327,
15.0 326,
054
816
518
973
385
624
100.0
100. 0
100.0
100.0
100.0
100.0
1941: J a n u a r y
F e b r u a r y . __
March
April
May
June
July
89, 996
91, 182
113,574
129, 348
143, 770
139, 647
142, 695
29.3
30.7
32.6
32.5
33.0
32. 4
32. 2
27,
23,
27,
32,
35,
37,
37,
691
716
842
313
635
372
262
9.0
8.0
8.0
8. 1
8. 2
8. 7
8. 4
78,
74,
86,
98,
107,
107,
108,
977
526
178
076
151
827
555
25.7
25. 1
24. 7
24. 6
24. 6
25. 1
24. 5
12,
11,
14,
16,
19,
20,
21,
931
662
016
888
705
503
080
4. 2
3.9
4.0
4. 2
4. 5
4. 8
4. 8
53,
52,
59,
65,
69,
67,
71,
891
442
646
708
836
380
456
17.5
17.7
17. 1
16. 5
16. 0
15. 6
16. 1
44.
43,
47,
55,
59,
57,
61,
154
335
624
972
864
487
991
14.3
14. 6
13. 6
14. 1
13. 7
13.4
14. 0
307,
296,
348,
398,
435,
430,
443,
640
863
880
305
961
216
039
100.0
100.0
100.0
100.0
100. 0
100. 0
100. 0
Table 70.—Estimated nonfarm real estate foreclosures/ by size of county
Table 11.—Property operations of the Home
Owners1 Loan Corporation
County size (dwellings)
Period
U. S.
total
Less
than
5,000
60,000
5,000- 20,000- and
19,999 59,999 over
1940: J a n . - J u l y
July.
August.
September
October. _
November
December
45,112 4 , 6 9 5
6,293
667
6, 128
595
6,294
539
6,305
618
5,832
603
5,639
635
6, 755
909
835
1, 018
897
832
819
9,336 24, 326
1,269 3,448
1,338 3,360
1, 355 3,382
1,319 3,471
1,343 3,054
1, 103 3,082
1941: J a n . - J u l y '
January
February
March
April _
M a y __
June
July _ _ _
36, 775 4 , 0 3 8
607
5,474
4,950
526
5,650
621
5,445
587
630
5,375
630
5,047
4,834
437
5,617
800
789
870
853
837
727
741
7,843
1, 180
1,009
1, 191
1, 119
1,236
1,149
959
432
19, 277
2,887
2,626
2,968
2,886
2,672
2, 541
2,697
Period
Number
of properties
acquired 1
Number
of p r o p erties
sold
Number
of properties
on h a n d at
end of
month
1940: July
August
September..
October
November..
December.
1,694
1,758
1,701
1,719
1,728
1,580
3, 355
3,691
3,619
3,886
3,253
2,706
60,
58,
56,
54,
52,
51,
1941: J a n u a r y . _
February.
March
April
May
June
July
1,638
1,340
1,327
1,226
1,080
1,270
803
2,425
2,223
2,369
2,464
2,458
2,296
1,788
50, 865
49, 940
48, 856
47, 588
46, 170
44,922
43, 933
1
470
524
598
433
878
722
Includes reacquisitions of properties previously sold.
Federal Home Loan Bank Review
Table 12.—Progress of institutions insured by the Federal Savings and Loan Insurance Corporation
[Amounts are shown in thousands of dollars]
1
Period a n d class
of association
Operations
Number of
associations
Total
assets
N e t first
mortgages
held
Private
repurchasable
capital
Government
investment
Federal
Home
Loan
Bank
advances
N u m b e r of
investors
New
private
investments
Private
repurchases
New
mortgage
loans
ALL INSURED
1939: J u n e
December^
2 , 1 7 0 $ 2 , 3 3 9 , 4 1 1 $1,769, 112 $1, 657, 859 $259, 943 $127, 062
2. 506, 944 1, 943, 852 1,811, 181 250, 725 142, 729
2,195
1940: July
August
September.
October
November.
December.
2,237
2,248
2,259
2,264
2,269
2,276
2,
2,
2,
2,
2,
2,
259
287
391
083
817
781
2,
2,
2,
2,
2,
2,
167,
208,
250,
291,
317,
342,
366
016
905
477
292
804
2,
2,
2,
2,
2,
2,
039, 739
059, 097
085, 410
114,831
143, 360
202, 135
220,
220,
220,
220,
220,
220,
893
081
569
629
689
789
129, 909
136, 244
144,997
150, 700
154, 802
171, 347
2,
2,
2,
2,
2,
2,
610,
634,
664,
695,
706,
772,
200
300
200
800
300
400
496
025
203
982
990
586
73,
36,
30,
30,
25,
22,
111
060
928
286
278
865
70,
72,
68,
71,
57,
56,
943
214
665
380
686
363
1941: J a n u a r y . .
February..
March
April
May.
June
July
2,282
2,289
2,292
2,297
2,302
2,310
2,313
2, 929, 247
2, 959, 330
2, 991, 565
3, 034, 528
3, 079, 396
3,158,251
3, 154, 228
2,
2,
2,
2,
2,
2,
2,
359,
384,
416,
457,
501,
554,
595,
057
160
680
438
582
274
114
2,
2,
2,
2,
2,
2,
2,
262,
296,
323,
354,
379,
433,
449,
216,
206,
206,
206,
206,
206,
203,
485
015
094
078
304
301
512
141, 450
129, 437
119,461
115,372
119, 242
114,331
142, 870
2,
2,
2,
2,
2,
2,
2,
802,
869,
896,
924,
943,
974,
998,
700 127, 490
500 65, 384
100 64, 633
000 65, 947
300 57, 755
500 61, 448
100 103, 886
75,
37,
39,
39,
35,
26,
90,
228
081
605
194
122
779
728
52,
53,
69,
77,
82,
85,
84,
270
765
313
735
443
117
994
1939: J u n e . . . . 1,383
D e c e m b e r , 1,397
1,441,058
1, 574, 314
1,135,511
1, 268, 872
990, 248
1, 108,481
217, 026
208, 777
88, 298
105, 870
1, 299, 100
1, 412, 200
27, 000
32, 000
1940: J u l y
August
September.
October
November
December.
1,422
1,427
1,430
1,433
1,435
1,438
1, 724, 821
1,750,870
1, 775, 555
1, 804, 397
1, 829, 939
1, 872, 691
1, 430, 982 1,282,590
1, 461, 440 1,297,572
1, 487, 489 1,309,421
1,329,364
1,514,872
1, 532, 745 i 1,349,761
1,387,839
1,545,838
181, 724
181, 256
181,261
181, 371
181,381
181,431
95, 175
99, 985
106, 674
110,583
114,070
127,255
1,
1,
1,
1,
1,
1,
000
100
400
800
600
200
60,
34,
31,
37,
34,
44,
489
871
184
309
092
531
49,
22,
19,
18,
14,
12,
244
643
414
583
867
135
48, 676
50, 305
46, 480
48, 307
38,896
37, 715
1941: J a n u a r y __
February..
March
April
May
June1
July2
1,439
1,441
1,442
1,445
1,447
1,450
1,452
1,872,744
1,890,266
1, 915, 054
1, 945, 949
1, 977, 162
2, 028, 045
2, 022, 886
1, 563, 038 1,436,443
1, 577, 498 1,458,840
1, 599, 592 1,480,866
1, 627, 545 1,504,271
1, 656, 899 1,522,675
1, 687, 088 1 1,554,374
1,565,799
1,715,819
177,
168,
168,
169,
169,
169,
166,
265
873
922
047
247
247
464
102, 973
92, 558
84, 810
81,076
83, 674
103, 696
102, 513
1, 709, 800
1, 736, 900
1, 758, 400
1, 780, 100
1, 792, 700
1,806,200
1, 822, 700
87,
45,
44,
45,
38,
40,
70,
950
587
390
058
423
030
290
49, 852
23, 131
23, 618
23, 376
20, 582
14, 530
61,061
34, 360
35, 645
45, 365
51,371
55, 396
57, 542
56, 564
1939: J u n e . . . .
December.
787
798
898, 353
932, 630
936, 900
973, 800
13, 700
16, 400
7,700
8,214
16, 754
15, 463
1940: J u l v
August
September. 1
O c t o b e r . __
November.
December.
815
821
829
831
834
838 j
1941: J a n u a r y __
February..
March
April. _
May
June
July
843
848
850
852
855
860
861
706,
742,
789,
832,
867,
931,
692
225
041
239
856
513
807
2, 236, 000 $40, 700 $15, 800 $55, 848
2, 386, 000 48, 400 17, 445 49, 516
86,
51,
46,
53,
49,
65,
FEDERAL
574,
591,
602,
624,
627,
665,
8, 100
9,231
39, 094
34, 053
STATE
1
633, 601
674, 980
667,611
702, 700
42, 917
41, 948
38, 764
36, 859
981, 438
991,417
1, 013, 836
1,027,686
1,037,878
1,059,090
736,
746,
763,
776,
784,
796,
384
576
416
605
547
966
757,
761,
775,
785,
793,
814,
149
525
989
467
599
296
39,
38,
39,
39,
39,
39,
169
825
308
258
308
358
34,
36,
38,
40,
40,
44,
734
259
323
117
732
092
1,
1,
1,
1,
1,
1,
036,
043,
061,
071,
078,
107,
200
200
800
000
700
200
26, 007
16, 154
15,019
16, 673
15, 898
21,055
23, 867
13,417
11,514
11,703
10,411
10, 730
22,
21,
22,
23,
18,
18,
1,056,503
1,069,064
1,076,511
1, 088, 579
1, 102, 234
1, 130,206
1, 131, 342
796,
806,
817,
829,
844,
867,
879,
019
662 !
088
893
683
186
295
826, 249
837,385
842, 175
849, 968
857, 181
879, 139
884, 008
39,
37,
37,
37,
37,
37,
37,
220
142
172
031
057
054
048
38,
36,
34,
34,
35,
40,
40,
477
879
651
296
568
635
357
1,
1,
1,
1,
1,
1,
1,
092, 900
132,600
137, 700
143, 900
150, 600
168, 300
175, 400
39, 540
19, 797
20, 243
20, 889
19, 332
21,418
33, 596
25, 376
13, 950
15, 987
15,818
14, 540
12, 249
29, 667
17,910
18, 120
23, 948
26, 364
27, 047
27, 575
28, 430
i In addition, 5 converted Federals with assets of $1,594,000 were not insured as of June 30, 1941.
2 In addition, 4 converted Federals with assets of $2,134,000 were not insured as of July 31, 1941.
September 1941
267
909
185
073
790
648
Table 13.—Lending operations of the Federal
Home Loan Banks
Table 14.—Government investments in
savings and loan associations *
[Thousands of dollars]
[Amounts are shown in thousands of dollars]
Federal H o m e
Loan B a n k
Boston.
N e w York __ _
Pittsburgh
Winston-Salem_ _
Cincinnati
Indianapolis
Chicago _
Des Moines _
Little Rock
Topeka
Portland. _
Los Angeles
Total
Advances
Treasury
R e p a y - Adm e n t s vances
Advances
outstanding,
Repaym e n t s J u l y 31,
1941
$357 $1, 593
946 2, 160
945 2 , 2 1 3
2 , 9 0 8 5, 081
1, 572
966
1, 042
708
2, 340 5, 111
894 2 , 4 4 5
1, 367
906
824
384
1, 900
1,508
4,009
1,757
$586
664
424
495
404
166
1,011
228
128
148
98
340
12, 867 14, 619 29, 317
4,692
Oct. 1935-July 1941:
Applications:
N u m b e r . _ ..
Amount
Investments:
Number _ _ _
Amount
Repurchases.
N e t outstanding investments.. _
168, 145
J a n . - J u l y 1941 _ 70, 641
15, 543
J u l y 1940
64, 654
J a n . - J u l y 1940
6,823
J u l y 1939
42, 705
J a n . - J u l y 1939
103,
10,
83,
14,
79,
988
718
745
198
960
Federals
T y y e of operation
$8, 632
17, 447
15, 728
19, 862
15, 606
10, 621
27, 931
14, 510
8,241
7,928
6,582
15, 057
$1, 457
985
1,441
2,695
679
314
1,420
1, 170
1,213
421
242
830
H o m e Owners' L o a n Corporation
Federals 2
J u n e 1941
July 1941
July 1941:
Applications:
Number
Amount
Investments::
Number
Amount
Repurchases.
162, 222
161, 587
State
members
Total
4, 666
993
1, 862
5, 659
$50, 401 $209, 096 $65, 857 $274, 953
739
4, 219
4,958
1, 831
$49, 300 $176, 885 $45, 564 $222, 449
$26, 958 $32,763 $8, 293 $41, 056
$22, 342 $144, 122 $37, 271 $181, 393
0
0
4
$300
2
$125
6
$425
0
0
$1, 329
1
$50
$1, 504
5
$291
$297
6
$341
$1, 801
i Refers to number of separate investments, not to number of associations in
which investments are made.
2 Investments in Federals by the Treasury were made between December 1933
and November 1935.
Table 15.—Changes in selected types of private long-term savings
[Amounts are shown in thousands of dollars]
A m o u n t s sold during m o n t h
Period
Life insurance 1
1940: J u l y _
August
September. _ _
October. _
November
December
1941: J a n u a r y . _
February
March _ >
April
May__ _
June
July
$566,
528,
503,
573,
505,
596,
522,
537,
598,
597,
604,
594,
582,
U.S.
savings
bonds 2
A m o u n t s o u t s t a n d i n g a t end of m o n t h
Insured
U. S. savings
savings
bonds 4
a n d loans 3
061 $72, 997
330 53, 359
427 47, 122
504 52, 221
474 50, 080
534 82, 207
$86,
51,
46,
53,
49,
65,
496
025
203
982
990
586
$2,
3,
3,
3,
3,
3,
965,
008,
043,
084,
123,
194,
940
137
626
021
036
793
762
557
217
203
162
164
292
127,
65,
64,
65,
57,
61,
103,
490
384
633
947
755
448
886
3,
3,
3,
3,
3,
3,
3,
371,
480,
598,
647,
758,
853,
992,
135
040
546
249
822
297
095
189, 276
120, 680
131,961
61, 968
57, 744
102, 517
145, 274
Change: Last 6 months
i Life Insurance Sales Research Bureau. Face amount of policies sold, excluding group insurance.
2 U. S. Treasury Daily Statement. Cash sales, including unclassified sales.
From May 1941: Defense Savings Bonds, Series E.
3 New private investments; amounts paid in as reported to the FHLBB.
* U. S. Treasury Daily Statement. Current redemption value. From May
1941: Defense Savings Bonds, Series E.
434
+ 18.42%
Postal
savings5
$1,
1,
1,
1,
1,
1,
296,
297,
295,
295,
298,
304,
1, 313,
1, 317,
1, 319,
1, 317,
1, 310,
1, 304,
1, 306,
Mutual
savings
banks 6
Insured
commercial
banks 7
Insured
savings
and loans8
722
$2, 039, 739
476
2, 059, 097
432
2, 085, 410
859
2, 114, 831
429
2, 143, 360
382 $10, 617, 759 $13, 062, 315 2, 202, 135
954
794
959
102
027
044
807
- 0 . 50%
10, 606, 224
13, 107, 022
- 0 . 11%
+ 0. 3 4 %
2,
2,
2,
2,
2,
2,
2,
262,
296,
323,
354,
379,
433,
449,
692
225
041
239
856
513
807
+ 8.27%
*U. S. Post Office Department. Outstanding principal, represented by certificates of deposit, excluding accrued interest, outstanding savings stamps, and
unclaimed deposits. Figures for the last two months are preliminary.
e Month's Work. All deposits.
i FDIC. Time deposits evidenced by savings passbooks.
• Private repurchasable capital as reported to the FHLBB.
Federal Home Loan Bank Review
Directory of Member Institutions
{Continued from p. 1+19)
WlTHDKAWALS FROM THE FEDERAL HOME LOAN BANK SYSTEM
B E T W E E N J U L Y 16 A N D A U G U S T 15,
1941
N E W JERSEY:
Camden:
Bettle-Ridge Building & Loan Association, Oaklyn National Bank
Building (member's request).
Newark:
Casino Building & Loan Association, 18 Belmont Avenue (voluntary
liquidation).
Pitman:
Alcyon Building & Loan Association, 51 South Broadway (member's
request).
PENNSYLVANIA:
Pittsburgh:
Schenley Building & Loan Association, 501 Greenfield Avenue (liquidation) .
United Ukranian Building & Loan Association, 619 East Carson Street
(member's request).
CANCELATION OF FEDERAL SAVINGS AND LOAN ASSOCIATION
CHARTER BETWEEN JULY 16 AND AUGUST 15, 1941
N E W JERSEY:
Paterson:
The Columbiad Federal Savings & Loan Association of Paterson, New
Jersey (merger with the First Federal Savings & Loan Association of
Paterson, New Jersey).
III. INSTITUTIONS INSURED BY THE FEDERAL
SAVINGS AND LOAN INSURANCE CORPORATION
BETWEEN JULY 16 AND AUGUST 15, 1941
DISTRICT NO. 3
PENNSYLVANIA:
Philadelphia:
East Girard Building & Loan Association, 3500 East Susquehanna
Avenue.
Pittsburgh:
Workingmen's Savings & Loan Association, 1114 East Street.
West View:
West View Building Loan Association, 456 Perry Highway.
DISTRICT NO. 4
ALABAMA:
Mobile:
Home Savings & Loan Association, Francis Street.
GEORGIA:
Decatur:
DeKalb County Federal Savings & Loan Association, 117 Clairmont
Streets.
Winder:
First Federal Savings & Loan Association of Winder, Broad and Athens
Street.
MARYLAND:
Annapolis:
Enterprise Federal Savings & Loan Association of Annapolis, 15 School
Street.
DISTRICT NO. 9
MISSISSIPPI:
Vicksburg:
Mississippi Building & Loan Association of Vicksburg, 1500 Washington
Street.
Resolutions of the Board
AMENDMENT TO RULES AND REGULATIONS FOR
FEDERAL SAVINGS AND LOAN SYSTEM RELATING TO
THE
LOAN
ACTIVITIES
INSURANCE
OF
THE
FEDERAL
CORPORATION
AS
SAVINGS
AND
RECEIVER
FOR
Adopted August 25, 1941;
effective August 25, 1941.
FEDERAL ASSOCIATIONS:
The Federal Home Loan Bank Board has adopted
an amendment to the Rules and Regulations for the
Federal Savings and Loan System setting forth
details of authority and conduct of the Federal
September 1941
Savings and Loan Insurance Corporation when acting
as receiver for Federal associations. Inasmuch as
the amendment was deemed to be of an emergency
character, it became effective upon its adoption and
filing with the Federal Register on August 25, 1941.
This amendment was effected by repealing the
last two sentences of Section 204.5; by renumbering
Section 204.6 to make it 204.17; and by inserting the
following new Sections 204.6 through 204.16:
204.6 Take possession, when. The Federal Savings and Loan Insurance Corporation upon appointment as receiver for a Federal association shall forthwith take
possession of the books, records and assets of every description of such association.
204.7 Procedure upon taking possession. Upon taking possession, pursuant to
Section 204.6 of these rules and regulations, the receiver shall forthwith
(a) post a notice in substantially the following form on the door of the home
office of such association:
Federal Savings and Loan Association
,
,
, is in the hands of the Federal
Savings and Loan Insurance Corporation as receiver under appointment by
the Federal Home Loan Bank Board.
Federal Savings and Loan Insurance Corporation
Date
as Receiver
By
(Title)
(6) notify, by written notice served personally or by registered mail or telegraph, all banks, trust companies, and all other individuals, partnerships,
corporations and associations known to it to be holding or in possession of any
assets of such association; and
(c) file with the Secretary of the Board a statement (1) that it has taken possession, pursuant to Section 204.6 of these rules and regulations, of such Federal
association, and (2) of the posting and time of posting of the notice pursuant to
the provisions of paragraph (a) of this Section, together with a copy of such
notice; and such statement shall be conclusive evidence of the posting and time
of posting of such notice.
204.8 Succession. Immediately upon the posting of the notice on the door of such
Federal association as provided in paragraph (a) of Section 204.7 of these rules and
regulations, the receiver, by operation of law and without any conveyance or
other instrument, act or deed, shall succeed to all the rights, titles, powers, and
privileges of the Federal association, its officers, and directors, or any of them.
Such officers and directors, or any of them, shall not thereafter have, exercise, or
act in connection with, any such rights, titles, powers or privileges, or any asset
or property of any nature of the association; provided, however, that nothing
herein shall deny to such officers and directors the right from time to time to
address such petitions, authorized by the board of directors, as they may have to
the Board or its representatives designated to receive such petitions concerning
such association, or to represent the association at hearings provided for in these
rules and regulations.
204.9 Disposition. Unless the Board shall otherwise order, the receiver shall,
within 20 days of its appointment, recommend to the Board a plan for the reorganization, consolidation, merger or liquidation or other disposition of the
association. Such recommended plan may provide that the receiver as such may
(1) take over the assets of and operate the association, (2) take such action as may
be necessary to put it in a sound and solvent condition, (3) merge it with another
insured institution, (4) organize a new Federal savings and loan association to
take over its assets, or (5) proceed to liquidate its assets in an orderly manner.
The Board shall thereupon adopt a plan which may provide for the reorganization,
consolidation, merger, liquidation, or other disposition of the association, which
plan, including any amendments thereto and substitutions therefor ordered at any
time by the Board, shall be carried into effect by the receiver. The facilities of
the Board and of the Home Owners' Loan Corporation may be availed of in
carrying out the plan. The Board may, at any time, order the association returned to its management and may, before returning the association to its management regardless of whether such association is returned to its management,
order a meeting of the shareholders for any purpose, including, but not limited to,
election of new directors, or of the board of directors for any purpose, including,
but not limited to, the filling of vacancies on the board of directors or the election
of new officers, or may order meetings of both members and directors. Each such
election shall be supervised by a representative of the Board.
204.10 Powers and duties of receiver. The receiver, after posting notice pursuant to paragraph (a) of Section 204.7 of these rules and regulations, shall,
in its name, in the name of the association, in the name of both, or otherwise,
435
collect all obligations and money due such association, and may, in its name, in
the name of the association, in the name of both, or otherwise;
(a) do all things desirable or expedient in its discretion to carry on the business
of such association to an extent consistent with its appointment and to preserve
and conserve the assets and property of every nature of such association;
(b) exercise all the rights and powers of such association, including, without
any limitation on the generality of the foregoing, any rights and powrers under
any mortgage, deed of trust, chose in action, option, collateral note, contract,
judgment or decree, share or certificate of share of stock, or instrument of any
nature;
(c) pay off and discharge any taxes, assessments, liens, claims, or charges
of any nature against the association or the receiver or any asset or property
of any nature of such association;
(d) pay out and expend such sums as it shall deem necessary or advisable
for or in connection with the preservation, maintenance, conservation, protection, remodeling, repair, rehabilitation, or improvement of any asset or
property of any nature of such association;
(e) pay out and expend such sums as it shall deem necessary or advisable
for or in connection with the preservation, maintenance, conservation, or
protection of, or pay off and discharge any taxes, assessments, liens, claims,
or charges of any nature against, any asset or property of any nature on which
association or the receiver has a lien by way of mortgage, deed of trust, pledge
or otherwise, or in which the association or receiver has an interest of value
of any nature;
(f) institute, prosecute, maintain, defend, intervene, and otherwise participate in any and all actions, suits, or other legal proceedings by and against the
receiver or association or in which the receiver, the association, or its creditors
or members, or any of them, shall have an interest, and in every way to represent such association, its members and creditors;
(g) employ any attorney or attorneys, in connection with litigation or otherwise to give legal advice and assistance, for the receivership generally or in particular instances, and pay retainers and compensation of such attorney or attorneys, together with all expenses, including, but not limited to, the costs and
expenses of any litigation, out of the assets of the association;
(h) execute, acknowledge, and deliver any and all deeds, contracts, leases
assignments, bills of sale, releases, extensions, satisfactions, and other instruments necessary or proper for any purposes, including, without any limitation
on the generality of the foregoing, the effectuation or termination of any sale,
lease or transfer of real, personal or mixed property, or that shall be necessary or
proper to liquidate or carry on the business of such association. Any deed or
other instrument executed pursuant to the authority hereby given shall be as
valid and effectual for all purposes as if the same had been executed, as the
act and deed of the association or otherwise, by the officers of such association by
authority of its board of directors;
(i) deposit the moneys and funds in any bank or banks insured by the
Federal Deposit Insurance Corporation or in any Federal Home Loan Bank,
or any other banks or other depositories approved for such purposes by the
Board;
(j) sell for cash or on terms, exchange, or otherwise dispose of, in whole or in
part, any mortgage, deed of trust, chose in action, bond, note, contract, judgment, or decree, share or certificate of share of stock or debt, owing to such
association;
(k) sell for cash or on terms, exchange or otherwise dispose of, in whole or
part, any or all of the assets and property of the association, real, personal, and
mixed, tangible and intangible, of any nature;
(1) surrender, abandon, and release any choses in action, or other assets or
property of any nature, whether the subject of pending litigation or not, and
reject or repudiate any lease or contract which it considers burdensome;
(m) settle, compromise, or obtain the release of, for cash or other considerations, claims and demands against such association or the receiver;
(n) settle, compromise, or release, for cash or other considerations, claims and
demands in favor of the association or the receiver;
(o) with the approval of the Board and on terms and conditions approved by
the Board, borrow money in any amount and from any source and in any
manner, and execute, acknowledge and deliver notes, certificates, and other
evidence of indebtedness therefor and secure the repayment thereof by the
mortgage, pledge, assignment in trust or hypothecation of any or all of the
property, whether real, personal, or mixed, of such association, and such borrowing may be for any purpose, including, without any limitation on the
generality of the foregoing, facilitating liquidation, carrying on the business
of such association, protecting or preserving the assets in its possession, declaring and paying dividends to members and creditors, providing for the expense
of administration and liquidation, or aiding in the reopening or reorganization
of such association;
(p) pay out of the assets of the receivership all costs and expenses of the receivership and all costs of carrying out or exercising its rights, powers, privileges and
duties as receiver, all as determined by it, except as otherwise provided herein;
and
436
(q) do such things, and have such rights, powers, privileges, immunities, and
duties, whether or not otherwise granted in these rules and regulations, as shall
be authorized, directed, conferred, or imposed from time to time in specific
cases by order of the Board, or by amendment of these rules and regulations.
For the purpose of this section, asset and property including any mortgage,
deed of trust, chose in action, bond, note, contract, judgment or decree, share or
certificate of share of stock, or debt of the association, and right and power of
the association, shall include any such asset or property, right or power of the
receiver.
204.11 Creditor Claims.
(a) In the event the Board shall adopt a plan providing for the liquidation of the
association, as provided in Section 204.9 of these rules and regulations, the receiver shall promptly publish, in a newspaper printed in the English language
and of general circulation in the city or county in which the home office of such
Federal association is located, a notice to all creditors of such Federal association
to present their claims with proof thereof to such receiver on or before a date
specified in such notice. The date specified in such notice shall be at least 90
days after the date of the first publication of such notice (Sundays and holidays
included). Such notice shall be similarly published on dates approximately
one month and two months respectively after the date of such first publication.
Claims not filed within such period shall be disallowed, except as they may
thereafter be approved by the Board for payment in whole or in part out of the
assets of said Federal association remaining undistributed at the time of such
approval. The receiver may, in its discretion, mail a similar notice to any
creditor, shown to be such on the books of the association, at the last address of
such creditor as the same shall appear on such books.
(b) Any claim proved to the satisfaction of the receiver shall be allowed by the
receiver except as hereinbefore provided. The receiver may disallow in whole
or in part or reject in whole or in part any creditor claim or claim of security,
preference or priority not proved to its satisfaction, and notice of such disallowance or rejection together with the reason therefor shall be served by the
receiver upon the claimant. The mailing of notice of such disallowance or
rejection to the last known address of any claimant appearing on the books or
the proof of claim shall be deemed sufficient for the purposes hereof. Unless
such claimant shall within 30 days after the mailing of such notice (Sundays
and holidays included) file with the Board written request for payment regardless of such disallowance or rejection by the receiver, such disallowance or
rejection shall be final except as the Board may otherwise determine in its
discretion.
(c) Upon the expiration of the time fixed for the presentation of creditor claims
by the notice provided for in paragraph (a) hereof, the receiver shall cause to
be filed with the Board a full and complete list of such claims presented. Such
list shall indicate the character of each claim therein listed and whether or not
allowed by the receiver. At such other date or dates as may be ordered by
the Board or determined by the receiver, a list of claims presented before such
date shall be filed with the Board.
(d) Allowed creditor claims, and creditor claims approved for payment by the
Board regardless of disallowance or non-allowance by the receiver, shall be
paid by the receiver in liquidating dividends declared from time to time by
the Board, to the extent that funds are available, in such manner and amount
as may be directed by the Board.
204.12 Share interest claims,
(a) In the event the Board shall adopt a plan providing for the liquidation of
the association, as provided in Section 204.9 of these rules and regulations, the
receiver shall, within one year from the date of such appointment, publish, in
a newspaper printed in the English language and of general circulation in the
city or county in which the home office of such Federal association is located, a
notice to all shareholders of such Federal association to present their sworn
proofs of claim of ownership thereof to such receiver on or before a date specified
in such notice. The date specified in such notice shall be not less than five
years after the date of the appointment of the receiver. Such notice shall urge
that claims of ownership be presented promptly and shall be similarly published on dates approximately one year and two years respectively after the
date of such first publication. Claims of ownership not filed within the period stated in the notice shall be disallowed, except as they may thereafter be
approved by the Board for payment in wmole or in part out of the assets of
said Federal association remaining undistributed at the time of such approval.
The receiver shall mail a similar notice to any shareholder, shown to be such
on the books of the association in the possession of the receiver, at the last address of such shareholder as the same shall appear on such books, provided,
however, that such notice need not be mailed to the holder of a share account
that has been surrendered and transferred to the Federal Savings and Loan
Insurance Corporation. At the time of the declaration of the first liquidating
dividend, the receiver shall credit to a special reserve the proportionate shares
of such liquidating dividend otherwise payable to the holders of unclaimed
share accounts shown on the books of the association which appear to be outstanding and valid, and similar credits shall from time to time be made for any
subsequent liquidating dividends as the same may be declared before the date
Federal Home Loan Bank Review
specified in the notice hereinbefore provided for. The final liquidating dividend to shareholders whose claims of ownership have been allowed may include
any sums held in such accounts or any portion thereof, but such dividend shall
in no event be paid before the date specified in the notice hereinbefore provided.
(b) Any share ownership proved to the satisfaction of the receiver shall be
allowed by the receiver. The receiver may disallow in whole or in part any
claim of share interest not proved to its satisfaction, and notice of such disallowance together with reason therefor shall be served by the receiver upon the
claimant. The mailing of notice of such disallowance to the last known address
of any claimant appearing on the books or proof of claim shall be deemed sufficient for the purposes hereof. Unless such claimant shall file with the Board
written request for payment regardless of such disallowance or rejection by the
receiver within 30 days after the mailing of such notice (Sundays and holidays
included), such disallowance or rejection shall be final except as the Board shall
otherwise determine in its discretion.
(c) Upon the expiration of the time fixed for the presentation of claims of share
interest by the notice provided for in paragraph (a) hereof, the receiver shall
cause to be filed with the Board a full and complete list of such claims presented.
Such list shall indicate the character of each claim therein listed and whether
or not allowed by the receiver. At such other date or dates as may be ordered
by the Board or determined by the receiver, a list of claims presented before
such date shall be filed with the Board.
(d) Allowed claims of share interest, and claims of share interest approved for
payment by the Board regardless of disallowance or non-allowance by the receiver, shall be paid by the receiver in liquidating dividends declared from time
to time by the Board, to the extent that funds are available, in such manner
and amount as may be directed by the Board.
(e) Upon the payment of insurance to the holder of a share interest, the surrender and transfer to the Federal Savings and Loan Insurance Corporation
of the insured account, and the subrogation of the Federal Savings and Loan
Insurance Corporation with respect to such insured account to the extent provided by law, shall be noted on the books of the receivership.
204.13 Inventories, examinations, and reports.
(a) Inventory. As soon as practicable after taking possession, the receiver shall
make an inventory of the assets of such association as of the date of such taking
possession, showing the value as carried on the books of the association, and
the security therefor, if any, in whatever form the same shall exist,with a brief
description of each such asset and such security. Such assets may be listed
in such groups or classes as shall, to the satisfaction of the Board, afford full
information as to their character and book value, and the receiver shall include
a record of the creditor and share liabilities of the association. One copy of
such inventory shall promptly be filed with the Secretary to the Board, one
copy with the Federal Savings and Loan Insurance Corporation, and one
copy shall be retained in the principal office for liquidation of the association,
so long as such office is maintained.
(b) Examinations and audits. Each Federal association for which a receiver has
been appointed shall be examined and audited (with appraisals when deemed
advisable by the Board) at least annually by the Examining Division of the
Board or as otherwise directed by the Board. The cost, as determined by
the Board, of examinations, including office analysis thereof, audits, and any
appraisals made in connection therewith, shall be paid from the assets of the
association.
(c) Forms and reports. The receiver shall follow such accounting practices as
may, from time to time, be prescribed by the Board. The receiver shall close
its books as of June 30 of each year, and shall make an annual report of its
affairs as of June 30 of each year to the Board on forms prescribed by the Board,
and such other reports as may be from time to time required by the Board and
shall accompany each recommendation for the declaration and payment of
a liquidating dividend with a report showing the available assets. One copy
of the reports herein required shall be filed with the Secretary to the Board,
one copy shall be retained by the Federal Savings and Loan Insurance
Corporation, and one copy shall be retained in the principal office for the
liquidation of the association, so long as such is maintained.
204.14 Final discharge and release of receiver.
(a) Final report. At such a time as the receiver shall recommend a final distribution of the assets or at such time as the receiver shall be otherwise relieved
of its duties, the receiver shall file with the Board a detailed report in form
satisfactory to the Board.
(b) Final discharge. Unless otherwise directed by the Board, upon the final
liquidation of the receivership, or the completion of the duties of the receiver
or at such time as the receiver shall be otherwise relieved of its duties, an
examination and audit shall be conducted in connection with the report of
the receiver hereinbefore required. The accounts of the receiver shall thereupon be approved or disapproved, and, if approved, the receiver shall thereupon be given a complete and final discharge and release.
204.15 Inspection of reports. All inventories, statements and reports of the receiver
shall be in at least as many copies as required by these regulations or as shall be
September 1941
otherwise directed by the Board. One copy shall be filed with the Board and a
duplicate shall be filed with the Federal Savings and Loan Insurance Corporation,
and each of the inventories, statements, and reports shall constitute permanent
records of each liquidation open for inspection at such times and on such conditions as may be from time to time directed by the Board or, in the absence of
such directions, whenever the office of the Secretary of the Board shall be open
for business.
204.16 Effect of amendments to regulations. Amendments to these rules and regulations shall not affect the validity of any appointment heretofore made by the
Board, or the conduct of any receivership or conservatorship existing at the time
of such amendment, or the procedure to be followed under any such appointment, unless the amendment expressly so states, except that, to the extent not
otherwise specified in any statute, rule, regulation, order or plan governing
such appointment and actions thereunder, the titles, rights, powers, privileges
and immunities specified in these rules and regulations, as from time to time
amended, shall be deemed interpretative of the statutes, rules, regulations,
orders, and plans governing such appointments and actions thereunder. Any
temporary conservator in possession of any Federal savings and loan association
shall continue as such temporary conservator pursuant to the order of appointment and rules and regulations in effect at the time of such appointment, and shall
be succeeded by a receiver or conservator or the affairs of the association shall
be otherwise disposed of as provided in such order and rules and regulations,
provided, however, that any receiver or conservator who shall replace or succeed
such temporary conservator, except another temporary conservator, shall, upon
appointment, have and possess all the rights, powers, privileges, and immunities,
and shall be subject to the duties and liabilities vested and imposed on a receiver
or conservator by these rules and regulations as amended, but the causes for the
appointment of a receiver or conservator in place of such temporary conservator
shall be those specified by the rules and regulations in effect at the time of the
appointment of such temporary conservator.
PROPOSED AMENDMENT
PROPOSED AMENDMENT TO RULES AND REGULATIONS
FOR THE FEDERAL HOME LOAN BANK SYSTEM, REGARDING
PAYMENT
OF
SALARIES
BY
BANKS
TO
OFFICERS OR EMPLOYEES IN THE SERVICE OF THE
UNITED STATES GOVERNMENT.
A resolution was proposed by the Federal Home
Loan Bank Board on August 26 prohibiting the
payment of salaries by any bank to an officer or
employee who is also employed by the United States
Government, except that this provision would not
affect the granting of leave with pay during military
service or training. The proposed amendment, a
final sentence in Section 2.5, follows:
No compensation shall be paid by any bank to a n y officer
or employee while such officer or employee is receiving
compensation as a full-time or p a r t - t i m e salaried employee of t h e United States, or any d e p a r t m e n t or agency
thereof, or any corporate agency or instrumentality of
t h e United States having no capital stock, or all of whose
capital stock (except any qualifying shares of directors
or similar officers which m a y be otherwise owned) is
beneficially owned, directly or indirectly, by t h e United
States, provided, however, t h a t nothing herein shall
affect t h e granting of any leave with p a y to a n y officer
or employee in t h e military service or training of t h e
United States.
This proposed amendment will not be formally
approved until at least 30 days after it was mailed
to the Advisory Council and the Bank Presidents
(September 2).
437
INDEX OF VOLUME 7
•
F O R the convenience of readers in finding
references, the pagination of each issue of
Volume 7 is listed below. The titles of all articles
appear in italics.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
Volume 7
1—October 1940
2—November 1940
3—December 1940
4r-January 1941
5—February 1941
6—March 1941
7—April 1941
8—May 1941
9—June 1941
10—July 1941
11—August 1941
12—September 1941
Pages
1- 32
3 3 - 64
65-96
97-132
133-176
177-208
209-240
241-280
281-320
321-360
361-400
401-440
D
A
Additional Loans to Existing Borrowers— The Legal Framework
Adequate Loss Reserves—A Policy Problem
Advertising:
expenditures during 1940 by member associations for
radio, by savings and loan associations during 1939
three-year comparison of savings and loan expenditures for
Advisory Council, Federal Savings and Loan:
membership for 1941-1942 of
American Cities— Ten Years of Growth and Decline
American Savings and Loan Institute:
graduate school of
An Appraisal of Rent Control
Annual Report (Eighth) of the F H L B B :
review of
Pages
45
210
242,293
3
376
366
39
11
214
66
B
Balance sheets, combined:
of member associations at the end of 1940
327
Banks: see commercial banks or mutual savings banks.
British Building Societies during the First Year of War
223
British War Damage Bill:
provisions of
248
Building costs (monthly analysis and table of small-house building costs in
selected cities are published in each issue):
trends during 1940 in
145
Building materials (index of wholesale price of building materials is published each month):
priority plans for
325
Building societies:
effect of first year of War on
223
Bureau of Standards: see National Bureau of Standards.
Business conditions (analysis of business conditions is published in each
issue):
summary of 1940 trends in
142
Business Promotion Expenditures of Savings and Loan Associations during
m0
242
Business Promotion Survey:
advertising expenditures of member associations during 1940 revealed
by
242,293,376
California Savings and Loan Executive School:
description of
438
Census:
Pages
distribution of age groups, number and size of families, degree of urbanization, and number of family dwelling units
181
growth of metropolitan districts, as revealed by
373
population, by F H L B Districts and by States
43
variations in city growth as revealed by
39
City growth:
as revealed by Census of 1940
39,373
Closing the Books for 1940—A Progress Report for Member Associations
327
Commercial banks:
mortgage loan portfolio of
338
mortgage loans made by, during 1940
340
private savings invested in
7,151,340
real estate owned by
338
Composition of Savings and Loan Mortgage and Real Estate Accounts..
73
Construction: see Residential Construction.
Consumer installment debt:
changes in volume of
38
Credit Unions:
growth and operations of
77
Dayton, Ohio:
cooperative program of research by insured associations in
Debt:
changes in consumer installment
nonfarm home-mortgage
Defense:
financing of, through savings
homes registration for workers of
priority plans for building materials for
sale of savings bonds by savings and loan associations for
savings and loan financing aids housing program for
survey of housing program for
Defense Financing through Savings
Defense Homes Corporation:
role of, in defense housing program
Defense housing:
priority plans for building materials for
progress of, during 1940
project at Indian Head, Md
request for additional funds for
savings and loan financing aids
summary of legislation for, during 1940
survey of progress in
Defense Housing: A Proving Ground for New Ideas in Construction
Defense Housing Program—A Survey
Defense savings bonds:
description of plans for sale of
designation of member institutions as issuing agents for
participation in sale of, by savings and loan associations
provisions of Public Debt Act for
Demountable houses:
use of, in defense housing program
Directors, F H L B :
appointment, designation, and election of
Dividend policies:
recommendations of the FHLB Board for
102
38
410
178,218
180
325
282
322
287
178
290
325
144
402
349
322
289
287
402
287
218
265
282
178
402
131,187,341
68
E
England:
effect of first year of war on building societies in
property insurance against war risks in__
223
248
F
Farm Security Administration:
role of, in the defense housing program
290
Federal Home Building Service Plan: see Registered Home Service.
Federal Home Loan Banks (summary and table of lending operations are
published in each issue; condensed consolidated statement of condition,
dividends paid or declared, interest rates charged, statement of condition,
statement of profit and loss are published semiannually, February and
August; consolidated statements of condition compared for 1940, 1939,
1938 are published in February):
announcement of directors of
..__
131,187,341
new debentures of
76
retirement of consolidated debentures of
271
summary of 1940 trends of
,Tr
161
Federal Home Loan Bank Review
Pages
F H L B System (analysis and table of operations of reporting members are
published in each issue; combined statement of condition and annual
comparison of balance sheet items for all savings and loan members are
published in July):
operating ratios of member associations for 1940
367
combined balance sheet of member associations at the end of 1940
327
relationship of member assets of, to entire savings and loan industry. _ 107
summary of eighth annual report of
66
trends during 1940 in activity of members of (Bank District analysis). 137
F H L B System, Rules and Regulations, amendments to:
advances on security of consolidated F H L B debentures (proposed,
159)
218
interbank deposits (proposed, 187)
265
non-payment of salaries to Federal employees
437
minimum number of Bank Directors per State for the FHLB of Cincinnati (proposed)
159
publication of information regarding elections of F H L B Directors
(proposed)
309
the holding of political office by directors of FHL Banks (proposed).. 379
Federal Housing Administration:
activity of, during 1940
148,412
additional authority under Title VI of the National Housing Act__ 221,287
insurance limit raised of
71
renewal of insurance authority of
349
Federal savings and loan associations (analysis and tables of operations and
lending activity of Federals are published in each issue).
Federal Savings and Loan Insurance Corporation (analysis and table of
operations of reporting Federal and insured State-chartered associations
are published in each issue):
appointment of new General Manager of
291
community insurance program of, in Milwaukee, Wis
291
progress during 1940 of
160
FS&L System, Rules and Regulations, amendments to:
authority of FSLIC as receiver for Federal associations
. _ _ - 435
notice of annual and special meetings
348
permitting Federals to make loans under Title VI of the National
Housing Act
309
posting and publishing of statements of condition (proposed)
79
publishing or mailing of statements of condition and new form of statement of condition
264
Federal Works Agency:
defense housing project at Indian Head, Md., sponsored by
402
role of, in defense housing program
290
Forecast for 1941:
summary of prospects in residential construction, home-financing
activity, and related business
fields
152
Foreclosure Cycle—Where Do We Stand?
103
Foreclosures (estimated nonfarm real-estate foreclosures, by size of county,
published in each issue):
costs of mortgage, compared with cost of terminating land contracts- _ 113
present position in the cycle of
103
trend of, during 1940
103
Foreign accounts:
freezing of, by Executive Order
341
G
Government investments (table of investments in savings and loan associations is published in each issue):
repurchases of, in savings and loan associations
Growth of City Suburbs
185
373
H
Home-mortgage debt, nonfarm:
trends in, during 1940
410
Home-Mortgage Financing Reaches a Ten-Year Peak
410
Home Owners' Loan Corporation (monthly tables on property operations
and investments in securities of associations are published in each issue):
experience of, in use of land contracts
112
mortgage holdings of, at the end of 1940
413
reconditioning practices of
188
repurchases of investments by, in savings and loan associations
185
survey by, on real-estate taxation
334
Homes registration:
for defense workers
180,291
Housing and National Defense
34
"Hunt for Facts" questionnaire: See also Business Promotion Survey:
radio advertising of member associations during 1939
3
September 1941
I
Indian Head, Md.:
Pages
defense housing project at
402
Installment debt:
consumer, changes in
38
Insurance: see Federal Savings and Loan Insurance Corporation.
Insurance of Accounts, Rules and Regulations, amendments to:
advertising of membership in the FSLIC (proposed, 309)
379
brokerage business and sale of loans (proposed)
265
premium credits in the purchase of bulk assets (proposed)
413
Interest rates (table of interest rates charged by F H L Banks is published
semiannually, February and August):
trends of
_
151
L
Land Contracts in a Real-Estate Sales Program
112
Lanham Act:
amendment to
259
provisions of
34
Legislation:
amendment to National Housing Act extending authority under
Titles I and II
349
Lanham Act for defense housing
34,259
new amendments to the National Housing Act (Title VI)
221
defense savings bond
178
review of, for public defense housing
289
suggested Emergency Fair Rent Act
217
urban rehabilitation
415
Lessons of a Community Insurance Program
219
Life insurance companies:
estimated mortgage holdings of
13,413
investment policies during 1940 of
257,412
mortgage investments by
13
private savings invested in
7
real estate owned by
13
Life Insurance Companies: Their Investment Policies during 1940
257
M
Manchester Federal Savings and Loan Association:
home-building exhibit of
299
Midway in 1941
362
Milwaukee Properties Bureau, Inc.:
development of, in relation to community insurance program
220
Money-market conditions:
summary of, during 1940
143
More About Business Promotion Expenditures during I91fi
293
Mortgage Investments of Life Insurance Companies at the Close of 1939
13
Mortgage lending (analysis and tables of lending activity by all associations are published in each issue):
policies for, recommended by FHLB Board
68
summary of 1940 activity in
146,410
Mortgage loan accounts:
composition of savings and loan
73
Mortgage loan portfolios:
of all operating savings and loan associations
108
of insured commercial banks
338
of life insurance companies
15, 258
of member savings and loan associations
327
of mutual savings banks
340
Mortgage moratorium:
Soldiers' and Sailors' Civil Relief Act of 1940
64
Mortgage recordings (analysis and tables of estimated volume of mortgage
recordings are published in each issue) :
six-month comparison of, 1940-1941
407
summary of 1940 annual volume (individual Bank District analyses) . 146
Mortgages:
revision of, to provide additional loans
45
Mutual savings banks:
mortgage holdings of, at end of 1940
415
one hundred twenty-fifth anniversary of
301
private savings invested in
7,151
thrift and home-financing operations during 1940 of
340
N
National Bureau of Standards:
technological studies by, on roofing materials
260
439
National defense: see Defense.
National Defense Advisory Commission:
Pages
model legislation for rent control issued by Consumer Division of
241
National Housing Act:
addition, of Title VI to
221
renewal of Titles l a n d II
349
"Neighborhood Redevelopment Corporation Law:"
Illinois State legislation re private corporations in the urban redevelopment
field
418
Neighborhood rehabilitation:
new legislation facilitating the operation of private corporations in
4X5
Northwestern Graduate School of Savings and Loan.
description of
11
o
Operating ratios:
effect of size on member associations
of F H L B members for 1940
369
367
P
Population: see Census.
Postal savings:
private savmgs invested in
Practical Approach to Public Relations during 1941
Practical Savings and Loan Research
Prefabrication:
use of, in defense housing program
Priorities (building materials):
announcement of plans for
possible effects of, on residential construction
Priority Plans for Building Materials
Private savings (table of changes in selected types of private long-term savings is published in each issue):
decline in return on
summary of 1939 trends in
summary of 1940 trends in
Private share capital:
repurchases of, compared with annual new investments
turnover of, for insured savings and loan associations
Property Insurance Against War Risks
Prospects and Retrospects in the Light of Census Results
Public Buildings Administration:
defense housing project at Indian Head, Md., sponsored by
Public relations:
practical approach to, by savings and loan management
7
69
98
402
325
364
325
151
7
151
252
251
248
181
402
69
R
Radio Advertising by Savings and Loan Associations
3
Real-estate accounts:
composition of savings and loan
73
Real-estate conditions:
summary of 1940 trends in
148
Real estate owned:
analysis of 1940 trends in
150
use of land contracts in the sale of
112
Real-Estate Taxes in the Home Owners' Budget
335
Recent Changes in the Operation of the Registered Home Service
298
Reconditioning:
suggested practices for
188
Registered Home Service:
changes in operation of
298
Rent control:
suggested legislation for
214
Rentals (index of rentals is published in each issue):
an appraisal of control measures for
214
Repurchases of Government Investments by Savings and Loan Associations
185
Research:
a program of, for savings and loan associations
99
Reserves:
policies for
210
Residential construction (analysis and tables of current residential construction and real-estate conditions are published in each issue):
analysis of, for first six months of 1941, of problems and prospects, and
discussion for the future
363
forecast for 1941 activity in
152,363
possible effects of priorities on
364
revision of estimates for, on basis of 1940 Census
305, 352
summary of 1940 activity in
143
440
Pages
Resolutions of the Board: see FHLB System, FS&L System, and Insurance
of Accounts, Rules and Regulations, amendments to.
Review of 191,0:
trends in regional and national vital statistics of the savings and loan
industry, and general business conditions (entire February issue is a
year-end survey number)
Rise of Credit Unions
Roofs Over American Homes
135
77
260
s
Sale of Defense Savings Bonds by Savings and Loan Associations
Savings (table of changes in selected types of private long-term savings is
published in each issue):
summary of 1939 trends in
summary of 1940 trends in
Savings and Home-Financing Operations of Banks during 1940
Savings and loan associations (see specific subjects)
Savings and Loan Financing Aids the Defense Housing Program
Savings and Loan Graduate Schools
Savings stamps: see Defense Savings Bonds.
Share Capital Turnover _.
Six-Month Comparison of Mortgage Recordings—1940 to 1941
Soldiers' and Sailors' Civil Relief Act of 1940:
moratorium and protective provisions of
Southwest Graduate School for Savings and Loan Executives:
description of
"Standard house" (monthly analysis and table of building costs are published in each issue).
State-chartered savings and loan associations (analysis and tables of operations of insured associations and of lending activity, published monthly.)
"Suggested Emergency Fair Rent Legislation, A Report:"
summary of, Consumer Division, Defense Advisory Commission
Suggested Reconditioning Practices
Survey of Housing and Mortgage Finance
282
7
1.51
339
322
]1
251
407
64
11
217
188
66
T
Tax rates:
comparison of 1940 and 1939, average adjusted
survey of real-estate
Three States Tackle the Urban Rehabilitation Problem
Three- Year Comparison of Business Promotion Activites
Trend of Long- Term Savings
Twentieth Century Fund:
"Housing for Defense," report of
Trends in the Savings and Loan Industry
150
334
415
376
7
35
107
u
U. S. Army:
role of, in defense housing program
U.S. Department of Labor (monthly building permit data, and indexes of
housing rentals, of manufacturing employment and pay rolls, and of
wholesale price of building materials furnished by Labor Department).
U. S. Housing Authority:
role of, in defense housing program
TJ. S. Navy:
role of, in defense housing program
TJ. S. Savings bonds: see also Defense Savings Bonds.
private savings invested in
TJ. S. Treasury (table of investments in savings and loan associations is
published in each issue):
repurchases of investments by, in savings and loan associations
"Urban Redevelopment Corporations Law:"
New York law re private corporations in urban redevelopment
Urban rehabilitation:
new legislation facilitating the operation of private corporations in
289
289
289
7
185
417
415
V
Vacancies:
ratios of, as revealed by 1940 Census
76,115, 208
w
Whither Residential Construction?
Worcester Cooperative Federal Savings and Loan Association:
description of home-building department of
363
299
Y
Year-End Reports Provide New Data on Association Operations
367
Federal Home Loan Bank Review
U. S . GOVERNMENT PRINTING O F F I C E : 1 9 4 1
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
CHICAGO
B. J. ROTHWELL, Chairman; E . H . W E E K S , Vice Chairman; W . H .
C. E . BROUGHTON, Chairman; H. G. ZANDER, JR., Vice Chairman; A. R.
NEAVES,
President;
WINANT,
Treasurer; L. E . D O N O V A N ,
H.
N.
FAULKNER,
Vice President;
FREDERICK
GARDNER,
Secretary; P . A.
HENDRICK,
Treasurer; CONSTANCE M . WRIGHT, Secretary; UNGARO & SHERWOOD,
President; J. P . D O M E I E R ,
Vice President; H . C. J O N E S ,
Counsel.
Counsel.
NEW
DES
YORK
MOINES
Chairman;
C. B . B O B B I N S , Chairman; E . J. R U S S E L L , Vice Chairman; R. J. RICHARD-
N U G E N T FALLON, President; ROBERT G. CLARKSON, Vice President;
D E N T O N C. L Y O N , Secretary; H. B . D I F F E N D E R F E R , Treasurer; F . G.
SON, President-Secretary; W. H. LOHMAN, Vice President-Treasurer;
J. M. MARTIN, Assistant Secretary; A. E . MUELLER, Assistant Treasurer;
STICKEL, JR., General Counsel.
EMMERT, JAMES, N E E D H A M & LINDGREN, Counsel.
GEORGE
MACDONALD,
Chairman;
F.
V.
D.
LLOYD,
Vice
PITTSBURGH
LITTLE ROCK
E . T . TRIGG, Chairman; C. S. T I P P E T T S , Vice Chairman; R. H . R I C H -
W. C. JONES, J R . , Chairman; W. P . GULLEY, Vice Chairman; B . H .
WOOTEN, President; H. D . WALLACE, Vice President-Secretary; J. C.
ARDS,
President;
G.
R.
PARKER,
Vice
President;
H.
H.
GARBER,
Secretary-Treasurer; R. A. CUNNINGHAM, Counsel.
C O N W A Y , Vice President; W. F . T A R V I N , Treasurer; W. H. CLARK, J R . ,
Counsel.
WINSTON-SALEM
TOPEKA
H. S. HAWORTH, Chairman; E . C. BALTZ, Vice Chairman; O. K.
LAROQUE, President-Secretary; G. E . WALSTON, Vice President-Treasurer; Jos. W. HOLT, Assistant Secretary; T. SPRUILL THORNTON, Counsel.
P. F. GOOD, Chairman; R o s s THOMPSON, Vice Chairman; C. A. STERLING,
President-Secretary; R. H . BURTON, Vice President-Treasurer; JOHN
S. D E A N , JH., General Counsel.
CINCINNATI
PORTLAND
R.
P.
DIETZMAN,
Chairman;
W M . MEGRUE
BROCK,
Vice
Chairman;
WALTER D . SHULTZ, President; W. E . J U L I U S , Vice President; DWIGHT
W E B B , J R . , Secretary; A. L. M A D D O X , Treasurer; T A F T ,
STETTINIUS
B E N A. PERHAM, Chairman; B E N H . HAZEN, Vice Chairman; F. 1J.
JOHNSON,
President-Secretary;
IRVING
BOGARDUS,
Vice
President-
Treasurer; Mrs. E . M . J E N N E S S , Assistant Secretary; V E R N E
& HOLLISTER, General Counsel.
DUSEN-
BERY, Counsel.
INDIANAPOLIS
Los ANGELES
H. B . WELLS, Chairman; F . S. CANNON, Vice Chairman-Vice President;
F R E D T . G R E E N E , President; G. E . OHMART, 2nd Vice President; J. C.
MORDEN,
Secretary-Treasurer;
D E V A U L T , Counsel.
HAMMOND,
BUSCHMANN,
KRIEG
&
D . G. D A V I S , Chairman; A. J. EVERS, Vice Chairman; M . M . H U R FORD, President; C. E . BERRY, Vice President; F . C. N O O N , SecretaryTreasurer; VIVIAN SIMPSON, Assistant Secretary.
@FedFRASER