Evening star., 1935-02-02
Mel achlen Banking Corp.
DeIuged With Requests
for Insurance.
PORTION TURNED OVER
OTHER INSTITUTIONS
Volume Equally Divided Between
New Building and Refnancing
Of Existing Mortgages.
BY JAMES Y. NEWTON.

The McLachlen Banking Corp,
which on December "a obtained the
first commitments in the District for
mortgage loan insurance under Title
II of the national housing act, has
been deluged with applications for
loans to be insured, 1t was learned to-
day.
Nearly 100000 worth of appli-
cations have come into the bank from
Washington and the surrounding ter
ritory of Virginia and Maryland which
1t serves. The volume has been so
great that a portion of the proffered
business has been passed along to
other financial institutions. How
ever, an official of the corporation
stated that the institution intends
to "go in for the insured loan
in a big way" and that as many ap-
plications will be handled as possible.
He said the reason his bank has re-
ceived so many applications is largely
due to publicity when the first insur-
ance commitment was obtained.
When the McLachlen institution first
started receiving the applications for
insured mortgages it set up special
department to handle the F. H. A.
business under the direction of F. w.
Berens. However, more recently,
when the volume Of applications be-
came so heavy, BerenS was designated
to dispose of some of the business to
other financial institutions. He has
succeeded in opening up or locating
other channels of investment, and
now is known as bankers agent for
F. H. A. loans, handling the insured
mortgage applications for other banks
In addition to McLachlen.
400 Applications Filed.
Berens estimated that about 400
persons have filed applications for
loans either with him or with the
McLachlen Corp. A large number of
the requests are still pending, though
q number have been turned down as
ineligible. The volume of applications,
he said, is about evenly divided between
those who seek money for new build
ing and those home owners who wish
to ref1nance existing mortgages. How
ever, the proposed mortgage asSocia-
tions have not been set up yet. as
provided in Title III of the housing
act, and due to the consequent abb
sence Of liquidity, money to purchase
the new construction mortgages Is rel
atively scarce.
McLachlen has had 10 of its loan
applications accepted for insurance by
r. H. A., with q number Of others
pending. Six more have been placed
by Berens with other institutions.
Virginia leads in this list of loans on
which insurance commitments have
been obtained with 10, while of the
insured loans have gone to Washing
ton residents and 8 to people in
Maryland.
100000 Applied For.
Berens said that he has approx
mately 100000 worth of loan appli-
cations on hand, of which nearly half
million dollars worth are for new con-
struction. This large number of ap-
plications are pending, either await
ing F. H. A. action, examination by
the banks or financing funds. About
$160,000 In mortgages are awaiting
approval by banks other than Nc
Lachlen, which are represented by
Berens. The total value of mort
cages that the Housing Administra-
ton has approved for these banks
represented by Berens is approx
mately $4,000. McLachlen has
financed more than 100000 Of this
total.
The lack Of proper mortgage mar
ket, Berens said, is holding up some
what the granting of insured mort
cages. This mortgage market is to
be supplied under title III Of the
housing act, plans for which have not
been completed by F. H. A. This Sec
ton of the act would provide a
method Of turning over or dispoSing
Of mortgages by setting up huge mort
gage associations throughout the
country, which would be backed by
private capital.
Berens said that by June l he
hopes to obtain a credit pool through
the various banks which will be
capable Of taking care Of about
(Contiy,11ol m, Doro CoI,,,,,~