Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-10-12
MORTGAGE GAINS
ARE C|TEDByF.H.A.
Business by Outside Firms
Reported Growing in Sew
eraI Cities.

Accordance by institutional invest
ors of the safety factors furnlSheo
by the appraisal, risk-rating methods,
and insurance features adopted by
the Federal Housing Administration
for residence mortgages is to be seen,
according to Administrator Stewart
Mcdonald, in the growing volume
of business being done by approved
lending institutions located outside OF
the city wherein property is situated.
A recent example was that reported
BY j. M. Dockery, Federal Housing
Administration district manager in
the Chattanooga CTenn) Office.
Mortgages in the amount of $2l8,OOO
had been selected for appraisal, but
the local banking institutions declined
to give them consideration.
The Fidelity Bankers Trust Co. OF
Knoxville, Tenn, acting as agent for
an eastern investment house, stepped
into the picture. as did Chattanooga
insurance company, and together
they relieved the mortgage jam so
that $500, 900 worth Of the paper was
financed in a day. According to Mr..
Dockery, with but two exceptions all
Of the mortgages that had been &C
cepted for appraisal met with ap-
proval and were financed.
Money Flows Freely.
The timely entrance Of outside
capital has caused mortgage money
to flow freely in Chattanooga, the
Housing Administration has been in
formed, that Office now having in
sured more than 100000 worth OF
mortgages.
Further, the Fidelity Bankers Trust
C. state that the institution which
they represent wishes to purchase an
additional $4,000, 900 worth of insured
mortgages.
In Toledo, Ohio, arrangements have
been completed for reflnancing $780,
900 in residence mortgages held by
the closed Commerce Guardian Trust
Il Savings Bank through the new
Commerce Guardian Bank. The State
Banking Department is selecting from
the closed banks assets mortgages that
will meet with the Federal Housing
Administrators requirements as to
credit standing, ability to pay, and
condition of the property. Not only
will this afford safe investment out
let for the bank but It will speed up
the liquidation of the closed institu-
ton, it was pointed out.
Survey Made in Ohio.
A survey of home loans in the port
folios of other closed Ohio institutions
is being made, with the view of re-
casting the sound mortgages that can
be made to conform with Housing Ad-
ministration's requirements for insur-
ance. Funds for this ref1nancing of
home mortgages have been offered by
institutions in cities other than that
in which the actual property involved
is located, it is reported.
One of the purposes tor inStituting
a uniform method of appraisal and
risk rating by the Federal Housing
Administration was to enable sections
wherein there was demand for mort
gage money that exceeded the avail
able supply to obtain funds from other
localities where there was an excess
of funds.
That such a method has been ar
rived at by the Housing Administra-
ton in its appraisals is becoming the
conviction of financial institutions
throughout the country, as is evil
denced by their growing willingness to
deal in mortgages on property in other
sections when such mortgages are
based on Housing Administration ap-
oraiSalS and insured