The Washington times., 1930-05-10
BILLION LOANS 8
FOR 8 YEARS
IN REALTY
Countrywide Survey Shows
Building and Developing
in Very Healthy Condition

More than a billion dollars q
year-Without pause through the
past three-year periods the rec
ord of real estate financing re
ported by Thomas F. Clark, di
rector of the Mortgage Bankers
Association of America, at thu
annual meeting of the United
States Chamber of Commerce
held here last week. He added
Such colossal figures, based
upon a countrywide survey just
made among members of the
Mortgage Bankers Association,
come as surprise to the, man
on the street who has attrib-
uted lessened real. estate and
building activity to a curtail-
ment Of loans by mortgage
bankers. Due to the fact that
the survey was confined to the
conservative institutions that
have qualified under the strict
membership standards of the
association, we can infer from
the figures that companies of
this type have regularly sup.
piled 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 rer
cent of the reporting members
actually showed an increased
business in 1929 over 1925"
Two hundred leading members
OF the association located in prac-
tically 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 millions in
1927, 727 millions in 1928 and 09l
millions in 1929.
An estimate of from a billion
to billion and a half dollars al
nual volume could be assumed Oh
the basis of a full report from all
OF the associations members.
Building and loan associations,
private investors, insurance ccm
panieS, trust companies and saw
ing banks negotiating directly
with borrowers, rather than
through mortgage bankers, are
not included in the survey. Clark
explained:
1T must be remembered that
in the last two or three years
we have seen the gradual with
drawal or failure of many So
called high pressure real estate
security houses whose loans
were, through intention or lack
of experience, made along spec
ulative lines. AS such houses
are gradually being eliminated
from the field it is only natural
that builders and developers
should feel the shortage of
funds from those sources.
"While one section of the gen.
eral public is bewailing the sup
posed 'tightneSs' of mortgage
money, another section is bound
to feel satisfaction over the pres
ent conservative trend of mort
gage banking and, in the knOwl-
edge developed by these stats
tics, that sound mortgage insti.
tutiOnS are furnishing an unin-
terrupted service to borrowers
and investors.
Judging from the figures
shown, high grade real estate
securities are still being sold and
being accorded their rightfuI
hOnOred place in the investment
field. Such securities must not
be made the tool of the wildcat
prOmOter-the speculator un-
willing to risk his own funds.
Level-headed home owners, real
tors and builders who are more
concerned with sound develop
ment than temporary profits
will find mortgage funds as pIen-
tiful as ever in 1890"
Sixty members making farm
loans in all of the principal agri-
cultural States were shown to have
varied their annual volume less
than 3 per cent over the three
year period. Total farm mort
cages sold were "a millions in 1927,
86 millions in 1928 and 81 millions
in 1929. A full report from all
members making such loans would
probably show an annual total of
between 100 millions and $50 mil
lions. The survey did not include
Federal and Joint Stock Land
Banks nor private investors, insur
ance companies. trust companies
and savings banks negotiating
directly with borrowers.