Evening star., 1939-06-10
H. OIL {. Data Testify
Growing Stability in
Low-|ncome Groups
Borrowers Reaching
Satisfactory Status
Reported Increasing

The great mass of home owners of
low and moderate income are com
ing back"-achieving an economic
stability greater than at any time
since the epression-accordin to
significant figures released today by
the Home Owners Loan Corp.
Declaring that the performance
of its borrowers over the last three
months indicates a definite trend
which gives encouragement to the
business outlook, the H. o. L. c.
stressed four concrete points:
l. A record increase in paid in-ful
loans.
2. A constant increase in the num-
Der of borrowers reaching satisfac-
tory status where they definitely are
on their way to debt-free home own
ership.
3. Decided increase in collections
over corresponding months of last
year.
4 A record squirt in the sale of
small homes
Clear Last Debt Hurdle.
The H O. L. C. operations, ex-
tending as they do into practically
every county in the country, reflect
fairly accurately general business
conditions" said Charles A. Jones,
general manager. And the trend is
too decided to ignore. The figures
on satisfactory accounts have been
climbing steadily now for three
Of
paying off their accounts in full
jumped from 1869 in February to
a record of $50 in March and again
to a record of GOT in April-making
a total Of nearly $4,000 original bor
roWers whose names have been
crossed off the books.
In February, tit per cent of our
active accounts were either current
or less than three months in arrears.
In March they increased to 72.3 per
cent, and by April they had risen to
T29 per cent. In February our total
satisfactory accounts-which include
current, less than three months in
arrears and liquidating accounts
had risen to 1874 per cent. In March
the figure was 839 per cent. In April
1t was 845 per cent
These percentages by no means
reveal the real significance of these
trends" said Mr., jones. These
borrowers, when refinanced, were on
the average delinquent two years
in both principal and interest and
between two and three years on
taxes. They now definitely are on
their way to the complete ownership
of their homes.
Repayments Pass S600.000 900.
Last week, their repayments on
their principal Indebtedness passed
the S600000,000 mark This means
that, although the average loan still
has more than II years to run. bor-
rowers have repaid nearly 10 per
cent of their Indebtedness.
February, 1929, collection figures
show an increase of 5.4 per cent
over February of 1898, March's are
II per cent above, Aprils are SIS
per cent above. Every month this
year shows distinct rise above the
corresponding month of last.
March collections amounted to
s26,000000 in principal and interest.
This is the second largest amount
ever collected in a single month
despite the fact that we have fewer
original borrowers left each month.
Our borrowers, utterly without
private credit, started from scratch.
The vast majority Immediately fell
into arrears, which might have been
expected. AS the years passed, it
also might have been expected that
their burdens would cause them to
fall still further behind.
Many did, but they are coming
out of it. Total, delinquencies con-
stantly are dropping. Thousands of
borrowers, who were % and "a
months in arrears, are now meeting
all bills and making regular monthly
payments on their arrearages, mov-