Evening star., 1934-03-19
HOME LOAN BODY
BENEFITS CITED
Summary Shows Half Mil
lion Homes and $500, 900
individuals Aided.

More than a half f-million American
homes, representing approximately
2,5OO.OO0 individuals, have been bene-
fitted by the Home owners Loan Cor
poration since the beginning of opera
tions last June, according to a sum-
mary of the corporations activities up
to March 9.
The calculation is based upon the
number of loans made, applications
approved and the Census Bureaus
estimate OF. 3.8 per family in the
United States.
The figures do not take into conSid-
Grafton, however, the hundreds OF
thousands of mortgages affected, OF
the depOSitorS or shareholders In
financial institutions, or holders of in
Surance policies resting in part upon
investment in home mortgages, who
were indirectly affected
1I4,67S Loans Closed.
On March 8 the H. o. L. G. had
closed 114,678 loans to home owners
totaling 1925, ISL, ,720. In addition to
this foreclosures were prevented and
the danger of losing their homes was
removed by the approval of $4,000
other loans, which have not yet been
finally closed. These are in progress
now and are being closed at rate
in excess of 10000 per week.
In order to meet the demands of
the public, 244 branch offices have
been established in the 48 States, the
District of Columbia and Hawaii
Through these agencies, relief has
penetrated into every corner of the
country.
The average loan made to date is
$2,833 and the corporation estimates,
that money and bonds advanced rep
resent only 69.3 per cent of the ap-
praiSalS.
Applications Total 1881 ,349.
The loans extended or approved
were culled from flood of 1,o31 ,349
applications filed. Thousands Of these
came from individuals not acquainted
with the requirements of the law or
were for property not eligible for relief
under the home loan bank act. It
was because of this flood of applica-
tions at the beginning of operations
that the first loans were slow in going
out. In fact. from June l3 to Septem-
Der %, only 369 loans for $l,056,923
were closed In the week beginning
September %, however, sufficient
number of the useless applications had
been rejected to permit speeding up
the program. The rate of closing loans
has multiplied steadily since then.
For example, in the four weeks
period from September % to october
81. 1761 loans were closed for S.
103.259; from October 21 to November
II, 1862 loans for $20,704, ,109 were
closed; November IT to December IS,
16,204 loans for $46, ,135, 913; December
IS to January II, 22,258 loans for
S62 284325; January u to February
9, 29,535 loans for $85, ,050,731, and
February to March 9, 37,499 loans
for $104,8l6,46
Frozen Mortgages Taken Over.
In addition to the mortgages re-
financed. the figures include approx
mately S27000,000 cash advanced for
the payment of taxes, assessments
insurance, repairs, and for legal serv-
ices such as title search, appraisals
and surveys when necessary.
One of the particular activities OF
the corporation that has been carried
on without much publicity has been
the work of taking over mortgages
frozen in closed banks. More than
$38,000,000 was advanced for this pur
pose by the corporations wholesale
department Individual mortgages
caught in the restricted banks and
taken over by the H o. L. c. number
approximately 1880.
In this work the corporation has
worked through the controller of the
currency, the Reconstruction Finance
Corporation and State banking au-
thoritieS. 1t is estimated that close
to 81 1000 100000 of the corporation's
bonds eventually will go into the relief
of restricted banks.