Evening star., 1933-11-11
HOME FINANCING
SET AT s112,OD0,ODO
Building and Loan Official
Estimates Amount Placed
in Four Months.

CHICAGO, Ill, November 11.-An
estimate that $ll2,00o,oo0 worth Of
financing has been done in the small
home field in the United States during
the last four months, is made by the
United States Building & Loan League,
on the basis of statistics assembled in
large and small communities.
Morton Bodfsh, executive vice presi-
dent of the league, shows how these
community financing institutions have
spent large part of their available
funds for the protection of worthy bor-
royers against the circumstances Of de-
preston. In The States reporting their
building and loan association activities
for the Summer and early Fall. he finds
rs per cent of the funds advanced for
two purposes-the reflnancing on long
term basis of straight mortgages wnlcn
had come due in other institutions ana
faced foreclosure, and the recasting OF
the associations own borrowers loans SO
as to allow for easier payments py the
month.
Companies Take Over Loans.
Mr.. Bodfsh pointed out that in this
way the building and loan associations
are taking over sound loans which would
otherwise be knocking at the door OF
Uncle Sans relief organization, the II.
o. l. G. He cites the coincidence OF
these building and loan activities with
the policy of the recovery program, re-
calling recent statement by the Fed
e-al Home Loan Bank Board that the
help which home owners have received
in the extension and refinancing OF
their mortgages in the present mort
gagee institution is a vital part Of the
program.
Meanwhile, we find from these fig
ures that there is considerable small
home construction and purchase OF
small homes going on throughout the
country. and financed by the building
and loan associations" said Mr.. Bodflsh.
Benefit to Unemployed.
"The construction loans include those
made for modernization and repair Of
existing homes, one of the most needed
activities in the entire construction field
today. The building and loan associa-
tions reporting their recent loaning
operations allocated IL per cent of the
volume of financing to construction and
modernization loans. We emphasize
that great deal Of this is in small COM
munities where the construction analyst
does not bother to count the new houses
built, and the building and loan associa-
ton is the first thought of everybody in
town VINO wants home loan.
"The employment which has resulted
by the estimated financing of some S12,-
100000 worth Of construction in four
months may roughly be indicated.
Eventually about rs per cent of the
money spent on such improvements or
building, goes into the pockets of the
laborers, either the building trades
men or the workers In the manufac-
turing institutions which produce the
building materials. At least So 900 900
nas been added to the wage earner's pur-
chasing power by these activities.
Another II per cent of the loans
made by reporting Stases for the period
were for the purchase Of homes by FAM
lilies desiring to take advantage of the
rapidly disappearing bargain homes. Re-
ports from the building and loan asso-
cation managers indicate that the one
family home Is enjoying great favor in
the market for homes, as compared with
muiu-family dwellings"