Evening star., 1936-09-19
MORTGAGE CREDIT
AGAIN INCREASES
S114,626,000 in July Ad-
vances Reported by Loan
= Associations.

For the fourth successive month the
,avings, building and loan associations
of the country in July made over
500 100000 available for mortgage
credit to home owners, the United
States Building and Loan League re-
ported today. July advances by these
institutions registered a new high for
1885, being estimated on the basis of
reporting associations at $l14,626, 900
to some 52,500 different borrowers.
The increase over June was 403 per
cent.
OF all purposes. the greatest per-
eentage Of increase was shown in the
credit granted for the construction of
new homes, being lat per cent greater
in July than in June. and amounting
to $32.42l 900, for the building Of TO-
900 dwellings.
Morton Bodfsh, executive vice
president Of the league. suggested that
the loan business Of the associations
Is beginning to gather momentum
from itself, one builder or buyer of q
new home spreading his enthusiasm
about new property ownership and
the monthly repayment method of
financing to his neighbors and friends.
Buy "When Time Is Ripe"
"All of the attempts to force q re-
vivai in construction and real estate
transfers by lowered rates, by super
abundance Of credit, or by just plain
talking people into it proved unsuc-
cessful as long as there did not exist
this justified interest In proprietor
ship and ownership which is really
being felt today" he said. "The past
few months performance has demon
strated once again that people buy
and build houses when the time is
ripe. according to their own concep-
ton Of things, and not for any other
reason"
Loans for the purchase Of existing
homes continue to play an increasing
part in the total credit advanced by
savings. building and loan associations,
he emphasized. They totaled $34, ,500,-
600 in July as contrasted with $32,-
100000 IN June. Modernization and
repair loans also, continued their up
trend from June to July, showing
an increase of 10 per cent and a
total volume of $8,307.000. II was
emphasized that very little of this
modernization credit has been ad-
vanced under title / Of the housing
act. where the Government guaran-
tees losses to the creditor up to 10
per cent OF the total amount of his
modernization loan. Accustomed to
making modernization loans and to
Judge risks for many decades, the as
sociations do not look upon such ad-
ditional guarantees as necessary for
their safety.
Monthly Trend Hailed.
Continuously since April, the
monthly loan reports from the savings
and loan business have shown de-
creases in the amount of disburse-
ments for the refinancing of older
mortgage obligations owed to other
types of lenders This trend is hailed
far and wide by the industry since
It demonstrates that the total existing
debt on homes in this country is
getting into a more settled status, with
borrowers becoming increasingly salts
fled with their credit arrangements.
An owner satisfied with his credit
arrangements is the desirable pro-
prietor because he is paying of his
debt. BodfiSh stated that never be-
fore in the course of any depression
has such q large percentage of the
existing home owner debt been traus-
ferred to the monthly amortization
plan originated and continually used
by the savings and loan business.
A breakdown of the July lending
business by the associations, accord
ing to purposes for which the loans
were granted follows: