Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-10
REALTY FINANCING
FIGURES RUN HIGH
Volume Based on Survey ES-
timated at More Than
Billion a Year.

More than billion dollars year for
the past three years has been invested
in the financing of real estate, accord
ing to an estimate by Thomas F. Clark,
director of the Mortgage Bankers AsSo-
citation of America, based on reports
from 200 leading members of the or
ganization from all parts of the country.
The statement, issued by the Mort
gage Bankers Association, was drafted
by Mr.. Clark following the annual
meeting of the Chamber of Commerce
held here.
such colossal figures, based upon a
countrywide survey just made among
members of the Mortgage Bankers As
ISOLATION, come as surprise TO the man
on the street who has attributed less
ened real estate and building activity
to curtailment of loans by mortgage
bankers" said Mr.. Clark.
due to the fact that the survey was
confined to the conservative institutions
that have qualified under the strict
membership standards of the aSsocia-
ton, we can infer from the figures that
companies of this type have regularly
supplied mortgage money for SOUND
projects even during this last three
year period when real estate activity as
a whole has been at a low ebb. Forty
per cent of the reporting members
actually showed an increased business
in 1929 over 1928"
Billion Estimate Assumed.
Two hundred leading members of the
association located in practically every
State of the Union submitted figures in
the survey showing sales of mortgages
and bonds secured by city real estate
to the extent of $676,000,000 in 1927,
S727, 100000 in 1928 and $691 ,000,0 in
1929 An estimate of from $1,000, 0OO,-
600 to $1,500,000,000 annual volume
could be assumed on the basis of full
report from all of the associations
members. Building and loan associa-
lions, private investors, insurance COM
panies, trust companies and savings
banks negotiating directly with Dor
rowers, rather than through mortgage
bankers, are not included in the survey.
ct must be remembered that in the
last two or three years we have seen
the gradual withdrawal or failure of
MANY so-called 'high-presSure' real es-
tate security houses whose loans were,
through intention or lack of experience,
made along speculative lines" explained
MFR. Clark. LAS such houses are gradu-
ally being eliminated from the field 1t
is only natural that builders and de-
velopers should feel the shortage OF
funds from those sources.
Plentiful Funds Predicted.
"While one section of the general
public is bewailing the supposed tight
ness of mortgage money another Sec
ton is bound to feel satisfaction over
the present conservative trend Of mort
gage banking, and in the knowledge
developed by these statistics, that sound
mortgage institutions are furnishing an
uninterrupted service to borrowers ano
investors.
Judging from the figures shown
high-grade real estate securities are still
being sold and being accorded their
rightful honored place in the invest
ment field. Such securities must not
be made the tool of the wildcat pro-
moter-the Spectator unwilling to risk
his own funds. Level-headed home
owners realtors and builders who are
more concerned with sound development
than temporary profits will find mort
gage funds as plentiful as ever in 1880"