Evening star., 1936-04-25
BU|LD|NGANDL0AN| |
GAINS ANNOUNCED
Changes in Public Attitude
Toward Residential Prop
erty Cited.

First quarter statements OF repre-
sentative savings, building and loan
associations in various parts OF tne
country reflect favorable changes now
taking place in public attitudes toward
residential property, 1t is shown by
Morton Bodfish, executive vice presi-
dent of the United States Building
and Loan League.
Comparison of these balance sheets
with those Of last year for the same
quarter and also with those for the
beginning of this year, show how
definite has been the progress up
from the deflation era in home owner
ship and in credit therefor, he points
out.
The asset item, real estate sold on
contract, has increased to % per cent
of total assets from 1T per cent this
time last year on the consolidated
statements of associations. This fac
tor is particularly significant since
1t shows the movement of properties
from the associations themselves TO
BUYERS. the latter undertaking home
ownership on a minimum down pay
ment plus monthly installments until
they have paid in sufficient amount
to Justify the transfer of title from
the associations to themselves under
a mortgage. This method of de-
creasing the real estate owned &C
count has been found most sat1sfac-
tory in a large percentage OF aSsocla-
tions. Mr.. Bodfish indicated. Since
this time last year it has accounted
for the transfer of some $65.000,0O0
worth of residential property from the
associations to new owners 1t IS eSt-
mated and the transfer has been at
about twice the pace noted a year
ago, witnessing the revived interest
in well-conditioned homes for sale.
Tendency Is Reversed.
The balance sheets also show q
reversal of the tendency for the per-
centage of real estate owned to total
assets to increase, a condition which
was still prevalent during the first
quarter of last year. This year the
home properties listed in the assets
of the associations as Of April are
only 1877 per cent of the total re-
sources, while they were 19 per cent
on January /. Last year the real
estate item increased per cent from
January ! to April /.
A decrease in real estate listed is a
natural corollary to increases in real
estate sold on contract provided there
is concommittantly no large movement
toward the assumption Of title to more
real estate, the league official recalls.
Apparently the last quarter has seen
q halt in the abandonment Of their
mortgage obligations by existing own
ers and there is thus reflected true
Improvement in the condition Of the
country's home owner debt in line with
recent statements from the Federal
Home Loan Bank Board regarding
real estate debts in general which
point since 1881.
Favorable Sign Cited.
Another decidedly favorable sign IN
the financial statements of the first
quarters ending is the increasing per-
centage of mortgage loans to total
assets when the statements are COM
pared with those of the first of the
year. The increase was small but
showed an upward trend, compared
with a decline last year. This trend,
of course, shows the effect of new
mortgage loans being made by the as
sociations In double the volume which
characterized last year. Included IN
these new loans are some transfers
OF property from the association to
new owners who have enough down
payment to secure title on a mort
gage basis.
THE whole process of getting the
homes back into the hands of in
dividual owners has been greatly aided
by the associations general practice
of reconditioning all properties on
their hands," said Mr.. Bodfish. by
this means would-be-buyers have been
enabled to visualize the thousands Of
bargains on today's market.
While the percentages of variance
In these items on the balance sheet
are necessarily small at this beginning
period of better real estate condi-
tions We cannot disregard In looking
at the business situation as a whole
the fact that here in these local thrift
and home financing institutions there
are evidences of the fundamentals
which make new home ownership
undertakings in 1886 logical and ap-
mailing"