Evening star., 1933-03-11
FINANCING IN 1882
ON MONTHLY PLAN
InstaI|ment Mortgage Ad-
vancements S52,00O,000
for 1870 Homes.

CHICAGO, ILL.,, March 11.-More
than one-half of the new homes built
in 1882 were financed by the building
and loan association monthly install
ment mortgage, it was reported today
by the United States Building and Loan
League. The first check-upS on total
loaning last year show that the aSso-
Citations advanced S52000,000 for the
construction of 1870 one-family
homes.
Statistical organization figures show
that only $500 single-family houses
were built in the past year. Thus the
building and loan business provided for
SIS per cent of them.
Ward B. Whitlock Of Springfield, Ill,
president of the league, says that the
association devoted 10 per cent Of their
total lending activity to mortgages on
newly built homes The remainder was
for reflnancing of home mortgages held
by other institutions, some for remodel
ing loans and others for purchase OF
existing homes. Total mortgage loans
estimated for 1882 show the associations
pouring S5210O0,000 into the home
mortgage field, In spite Of decreased in
come from savings of shareholders and
the need Of many other shareholders to
use their building and loan savings In
the emergencies Of the critical year.
Nature Of 1892 Loans
"It Is important that the loaning
business done in 1882 was almost en-
tirely out of the regular receipts OF
building and loan associations from
members, either older shareholders con-
tinuing payments, borrowers reducing
the principal of their mortgage indebt-
edneSs or new shareholders opening &C
counts with the associations" said Mr.
Whitlock Mot until the groundwork
for the operations Of the new Federal
Home Loan Bank System was laid did
the helpful possibility of increasing
loaning funds by obtaining advances
from longtime credit source become
reality. Because this source is now
definitely established we may look for
an increase of lending in 1888 over the
previous year, especially in view OF the
growing demand for home mortgage
loans noted in 25 States.
Average Loan $2,685.
"The average mortgage loan for a
newly built home in 1882 was $685..
This compares with $500 and $500
for the periods of 1928, 1929 and 1880.
Taking the average building and loan
association mortgage as go per cent OF
the total value of the home, we f1nd
the average home built with association
financing last year costing around
s4.500. This is a step in the right dl-
rection, and business and finance may
rest assured that the one-family homes
built in 1882 at an average cost OF
81, 500 are not only better suited to the
market than any homes have been for
years, but they are also better built
than the average home OF four years
ago. Loaning agencies are paying
marked attention to building methods
in the present critis, and as a result
the homes which they finance today
will be outstanding In the residential
realty structure of the years to come.
Larger amounts were loaned tor
construction Of homes in January, Feb
ruary, April and May than at any other
time last year. Financing for the build
ing Of new homes fell off in June and
July, and was up slightly in August
and the Fall months. This is probably
explainable on the grounds that the
1882 business level reached its low both
in figures and in public confidence in
Midsummer last year, and the mood for
building homes was considerably damp
ened The fact that such building
picked up in the months following is
hopeful indication that the damper
was only temporary"