Evening star., 1937-10-09
FAHEY STRESSES
NEED FOR HOMES
Volume for Year Greatest
Since 1930--Emphasis
Put on Quality.
Dpeotai Dispatch to The Star.

LOS ANGELES, Callf., OCTOBER g.-
Emphasizing the national need both
for more rapid expansion of home
building and for better built dwell
tnes, John H. Fahey, chairman OF
the Federal Home Loan Bank Board.
pointed out in message to the
annual convention of the United
States Building and Loan League
here this week that "the year thus
far has witnessed greater volume
OF new home construction than In
any year since 1890"
Mr.. Fahey said there are mil
Mons Of new homes to be built and
probably as many more to be mod
ernioed and improved. There is
every prospect that in the years ahead
OF us greater emphasis will be placed
on the necessity of seeing that the
home is really we'll designed and con-
structed and that those lending agen-
eies which exert every possible ef-
fort to aid the home owner in get
ting full value will have most of
the worth while loans"
Referring to most encouraging
progress in home financing and home
construction this year" Mr.. Fahey
stated that we have extended stead
ily the gains which began in 1895
and the year ending December 81,
last, represented the most encourag-
ing advance in the mortgage field
In more than five years"
Large Saving Accommodations.
"The upward trend has continued
through this year and it is apparent
that the figures for 1887 will show
q further large accumulation OF saw
ings in the mortgage lending and
savings institutions of the country
Real estate values have risen further
In nearly every section OF the coun-
try. There is steady downward
trend in foreclosures and more homes
are being refinanced."
Mr.. Fahey declared the expansion
of the Federal Home Loan Bank Sys-
tenn lis a cause for national graft
fication.' because it is through loans
from member savings and nan as
socistions of the system that between
i25ooo0 and 100000 American
families are buying these homes
Furthermore. the savings Of more
than 100000 people are intrusted
IN the custody of these institutions.
They have the major responsibility
for the financing of those small
homes needed to meet the large
shortage of dwellings,. which is grow
ing yearly. The steady flow of savings
into these institutions is necessary
to provide ample refinancing for a
large proportion of our homes.
Plainly, through the existence of
the Federal Home Loan Bank Svs-
tenn. the urban home mortgage rue
ture Of the country is better pro-
tected than at any time in our history
and consequently sound mortgages
now may be made with more con-
f1dence. The insurance of share in
vestments. which has been made
available through the Federal Savings
d Loan Insurance Corp, affords in
vestors an assurance of safety such
as they have never before had 1t
has been demonstrated conclusively
in actual experience that the public
places its funds more freely in in
stitutions which are insured"
Fl. o. l.. c. Activities Discussed.
Chairman Fahey also discussed the
activities of the Home Owners Loan
Corp, which is one of the agencies
under the board, and said that during
the last six months, in particular, the
Improvement in collections has been
especially marked. Most of the cor
poration's borrowers are either current
or practically so. OF those who are
behind. the majority are not only
meeting their current obligations, but
in addition are catching up on their
past delinquencies as we'll. From
month to month, collections are in
f1uenced, of course. by seasonal condi-
tions and employment. During the
past half year. the corporations collec-
tions each month have averaged about
81 per cent of the amount of its cur
rent monthly accruals. In some
months the figure was exceeded 100
per cent"
Stressing the fact that 1.-The corpora
tion has extended extraordinary for
bearance in dealing with its borrowers
before proceeding with foreclosure. !"
and that "it does not proceed to this
step If any reasonable adjustment is
possible" Mr.. Fahey said lit should
Be realized that H. O. L. G. holds a
greater number Of urban home mort
cages than any other institution has
had TO care for. The corporation
made total of 1921 .5s7 loans for a
total of SO 3,093. .2ss.213.)
Naturally it will have more fore
closures in numbers than other lenders
whose holdings are not so extensive.
In proportion, however, to the size Of
It's operations there is nothing at all
out Of the ordinary in the corporations
foreclosure experience.
Through the end of July this year,
the corporation has acquired 49,27o
properties, Mr.. Fahey said. OF this
number. 2.750 had been sold. Houses
acquired by the corporation are rented,
at figures consistent with the rents of
the locality almost As rapidly as they
are ready for occupancy after repairs, -
he added
Tufts of feathers form the "horns'
l.