Evening star., 1938-07-18
FLEMING PRAISES
M0RTGACEL0ANS
Explains How Bank Handles
Business Under U. S.
Housing Regulations.
By EDWARD C. STONE.


folio, organ of the F. H. A. Mr.
Fleming is believer in mortgage
lending as source of bank income
and his bank was one of the first tc
approve insured mortgages.
Riggs National has set up a mort
gage department and devised a sys.
tenn Of handling insured mortgage
loans which fits smoothly into the
banks normal operations and has not
incurred much additional expense
Only two staff members have been re-
quired for handling more than 300 F.
H. A. insured loans, totaling upwards
Of s2,200.000 to date, Mr.. Fleming
says.
THE fact of F. H. A. insurance" he
says, saves us from possible compli-
cations growing out of the manage
ment Of foreclosed properties. though
In this connection I should add that
We have had no foreclosures to date
nor any major collection difficulties. "
Outside Agencies Employed.
The Riggs system of mortgage lend
Ing is based on the use Of facilities
available through existing specialized
agencies in the local field, rather than
on the setting up of similar facilities
within the bank itself. Thus the bank
keeps to its main function of ex-
tending credit and retains qualified
outside agencies to attend to the more
technical details peculiar to residential
mortgage loans.
In organizing the system" Mr.
Fleming explains, we arranged with
local company which had had ex-
tensive experience as mortgage loan
correspondent for large life insur-
ance company, to make the ap-
praisals and inspections of properties
offered as mortgage security. Our
plan at first was to have this COM
pany service our loans as we'll We
later revised this arrangement and ar
rived at our present plan of having
this company simply make the ap-
praisal and, in the case of construc-
tion loans, periodical inspections, pay
ing them fiat fee for this work and
taking over the servicing of the loans
ourselves.
In addition, We arranged with sew
eral title companles-since We in
tended to operate in nearby Maryland
and Virginia, as well as the District
OF Columbia-to assume charge of title
searches, surveys. disbursements and
final closin2s. Thus, the only matters
requiring our attention under the sys-
tenn which We have finally evolved
are the credit and loan applicant and
the servicing of the loan itself"
The plan is working very salts
factorily for us. with no disruption of
our ordinary banking activities and
with very satisfactory return over
and above the modest overhead it re-
quires," Mr.. Fleming asserts.
Market Turns Sentiment.
In the monthly review of business
conditions, received by the Washing
ton Association of Credit Men, Henry
H. Helmann, manager of the national
association, says:
Business is bit more cheerful:
people are more hopeful. There is a
feeling that the worst of the depres-
sion Is over, that for the time being,
at least, the bottom has been reached
and we have started on the way up
The principal confirmation, as well
as major factor in this changed at
tltude, Is an unusual stock market
that added 20 per cent to the Nations
equities within the short space of sev-
eral weeks.
The stock market may not be, and
occasionally is not, barometer of
business conditions. but it seldom fails
10 be an accurate barometer of our
psychological state. Unquestionably
IL either helps Or hurts an optimistic
mental state and. through this shift
ing process, helps or hurts business"
Merger Plans Carried Out.
The Washington Office of Fenner 4,
Beane, New York Stock EXCHANGE
nrin, opened for business today at
slo Fifteenth street after a Quick
move since the market closed Satur-
cay noon. George A. Garrett is the
nrms new resident partner and John
Caswell office manager.
The consolidated staff is made IN
OF the present Fenner & Beane per-
sonnel and eight members of the
stan OF G. Mp. Murphy e. Co.. who
were formerly associated with Harri-
man d Keech. The Fenner g. Beane
customers men, who moved from
their old quarters at 8O9 Fifteenth
street over Sunday, include Henry G.
Strobhar, Alfred Frisbie Lloyd R.
freeman, Jr., and William S. Eberly.
The other members of the former
9. Mp. Murphy staff are now con-
nected with Auchincloss, Parker 4,
Redpath, in which John E. Parker
mas become a new partner. Today
was the Official date for completion
OF the new set-up, involving the
three different firms. The changes
were reported completed.
June Rural Sales Improve.
Daily average sales OF general mer-
ehandlse in small towns and rural
areas for June we're about 10 per cent
below June, 1887, but we're hicher than
for June Of all other years since 1929.
according to estimates of the Bureau
Of Foreign and Domestic Commerce,
A more than seasonal increase took
place from May to June with the
result that the seasonally adjusted
index advanced to 1922 for June, on
the basis of the average for the years
1e2e-3l as 100, from ITO for Nav,
thereby recovering the loss of the pre-
Nous month.
Sales for the first six months of the
year were 8 per cent below the same
period of 1887
Thirty nine Receiverships Completed
Marshall r. Diggs, acting controller
OF the currency, announced today the
completion of 80 bank receivershins
during June. Among them we're the
Farmers d Merchants National Bank
Bel Air, Md; Merchants g. Planters
National Bank, Dillwyn, Va; and the
National Bank of Thurmond, Thur
mond, W. Va. A total of l,142 receiv-
erships have now been finally closed
or restored to solvency since the bank
ing holiday Of March, 1888. Dividends