Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-10-05
Housing
Continued From First Page.)


ing to S3.292,000 in mortgages, Henry
H. bearing. in charge of the once,
reported. bearing said he knew OF
but a single default among all the
mortgages insured.
The operative builders OF the city
have offered excellent corporation
with the F. H. A. movement, bearing
isaid, and to date 81 of them nave
iapplied for and received the opera
tive builders tentative commitments
for insurance. The director said the
fact that a house has been carefully
.eyamined and Endorsed by F. H. "A.
experts is proving strong sales argu-
Iment for the real estate broker.
Eligibility Wins Buyers.
~ "The public every day is becoming
more and more interested as to
whether houses they wish to buy have
been approved by the administration,
bearing said II predict that within
ID comparatively short time 1t Will De
difficult to sell a home that is not
.eligible for financing under our plan.
The remarkable revival in the mar
ket for mortgages on urban real estate
is shown Strikingly in a series OF
Figures revealed today by Administra-
tor Stewart Mcdonald. The figures
pertain entirely to the investment
activities of the life insurance COM
panies of the country, but are con-
jsidered typical of the attitude OF all
Financial institutions having to deal
with mortgage financing. The fig
ures show that:
/, l. For the first time in three and
a half years the life insurance COM
ipanies are lending large sums on urban
real estate. These loans for the first
.eight months of the year are more
THAN double what they were for the
full wear of 1884 and almost four
times what they were for the full year
of 1888. The total so far for 1885
Is s112,S31 900.
= AIlot Other Millions.
|; 2. In addition to this the life in
surance companies have allocated
! s76,55O,0OO for investment in mort
cages insured by the Federal Hous-
ing Administration, more than full
amount loaned on all urban properties
in 1888 and 1884 combined. The
mortgages either are to be negotiated
direct with borrowers, perhaps
through representatives, or are to be
purchased from financial institutions,
such as banks, trust companies and
building and loan associations, which
also are approved mortgages.
/ The Federal Housing Administra-
ton sees in the figures indiSputable
evidence that the great financial in
situations of the country again look
upon urban mortgages as attractive
Investments. This was not the case
/ up to few months ago.
1 In 1881 the leading life insurance
companies loaned $500. $4,000 on
Ialrban real estate, constituting 36.5 per
'cent of their total investments. The
largest amount in any one month
was S56,1o6,o00 and the smallest,
, S27,884 900.
i In 1882 the same companies loaned
only about third of the total for the
previous year. The figure was $751;
563, 900 and it constituted 31.2 per
cent of total investments. The largest
amount in any one month was $42,-
4. 348, 900 Ganuary) and the smallest
$500 1000.
! In 1888 a total of $29,9l8,000 was
loaned, ratio of more than one to
seventeen for 1881 and more than
tone to five for 1882. Further, the
svestments, ratio of slightly less than
+ one to ten for both 1881 and 1882
IThe largest amount in any one month
twas $4,883,000 and the smallest, ST.
/. 666, 900.