Evening star., 1935-06-29
1877 MILLION LENT
TO HOME OWNERS
Building and Loan Units
Called Upon Heavily Dur
ing Spring Months.

Home owners borrowed around
kl87 900 900 from the savings. build
ing and loan associations during the
three Spring months of this year.
utilizing this source Of credit IN
greater degree than in any like period
since 1881.
These data come from the United
States Building and Loan League, ma
tional organization of these COM
munity thrift and home financing in
stitutions. H T. Donaldson, Lansing,
Mich, vice president of the league,
said that the advances by asSocia-
tions this Spring have been Sc per
cent higher than last year, twice the
volume in the Spring of 1888 and at
least 40 per cent greater than in 1882.
During the past week we saw the
end of the 30-day period for new ap-
plications allowed by the Home
Owners Loan Corp, and from now
on vet greater importance will attach
to the ability of the savings, building
and loan associations to supply money
for refinancing, as we'll as for buying,
remodeling and building homes,
said Donaldson.
F. H. A. Insured Mortgages.
Further evidence of the increasing
disposition of the public to borrow
from governmental lending agen-
cies is seen in the S25, 100000 of COM
mitments on F. H. A. insured home
mortgages made by various institu-
tions eligible for the Title II insur-
ance between December and May 25,
the league official recalls. While many
of the savings, building and loan as
kociations are planning to insure some
Of their new loans under Title II,
nearly all of their March, April and
May commitments of $l87 900, 900
have been made without the insur-
ance premium charge of p to l per
cent per year of the original amount
borrowed which such loan places on
the borrower.
Without doubt the greatest block
OF new mortgage credit for small
homes this Spring is that advanced
by the building and loan associations" :"
he continued. Many of them have
developed variations of their former
lending plans. keeping always the
essential features of monthly amorti-
Hation of the debt and the long term
for the loan. The result has been the
increasing popularity of such credit
As the Spring moved along. A break
down of the figures by months shows
that the disbursals to home owners
from this source rose from SAT 900, 600
in March to s68 900 900 in May. the
last month for which data are avail
able.
Better Prospects.
Prospects of even greater volume
Of new loans during the months
week sees more and more of our
10000 associations in position to
make new loans. The growing in
terest in the real estate market is de-
veloping a demand for type of credit
which has been negligible in our
transa ctions for some years, viz, the
loan for the purchase of home. The
cnmbina ton of more available mort
gage money and more effective de-
mand for it is practically certain to
sustain our volume of loans for some
months.
"One of the most significant signs
Of recovery may be found in the re-
turning disposition of the public to
use in their home mortgage transac-
tions institutions capitalized by saw
ings and investments. This seems to
be the first field in which a more
normal borrowing situation is ap-
pearing, but the performance here
will most probably have its effect in
encouraging other types of credit