Evening star., 1942-10-24
Purchase
Loans Rise Here
During August
-szs
5s Gain $65.000 Over
s@ 194l Figure, for
,: = $S67, 900 Total

Savings and loan associations pro-
vided 1857 600 in August to finance
home purchases here, the Federal
Home Loan Bank Administration
announced today.
This is equivalent to 27.5 per cent
of the total loans for all purposes
made by Washington thrift insti-
ttitions during the month. The VOL
ume compares with 1902 900 in home
purchase loans during the same Pc
riod of 1910.
afhe administration reported that
nationally there was increased &C
tivity in financing transfer of
homes built in previous years, de-
spite a shrinkage in the total loan
volume handled by savings and
loan associations. The decreased
volume was attributed to priority
restrictions on new building.
T. Mortgage Payments Up.
Meanwhile, home mortgages to-
falling $84,713,90O IN original prin-
ctpal amount have been paid off in
full during the first nine months
OF this year, in advance of ma
turity, by home purchasers, Abner
Hi Ferguson, Federal housing COM
missioner. revealed today. This
represents an increase of Is per
cent over the same period last year.
Total payments retired all or part
d. the Indebtedness on 100000 homes
being financed under the FHA in
sured mortgage plan The figure
for retirements in full is in addi-
ton to partial pre-payments which
many home purchasers are making
on FHA insured mortgages.
This is over and above the regular
monthly payments to reduce princi-
pals which now are at manual
rate of approximately $15O,OOO, 900.
During August home purchase"
loans by thrift institutions amounted
to $55, 300 900, the highest figure for
this category since October, 194l,
and gain of $1,100,0O0 over July,
FHLBA reported.
The August total of such loans
was 36 per cent above that for
August. 1910, indicating the mount
Ing sales demand for dwellings To-
Gated in areas of concentrated war
industries.
A comparison of August, 1910, and
August, 1912, period covering most
of Americas expansion in war pro-
duction, shows total lending of saw
ings and loan associations dropped
from $l17600,000 to S92 100000, a
recession more than accounted for
by a 29,900,0O0 decrease in mort
cages to finance new construction.
The total of loans in this category
was $12600,000 for last August.
Loans faor refinancing, recondition-
Ing and other purposes decreased
less over the two years. @ai l'
The upturn in retirement of FHA-
Insured home mortgage debt has
been particularly marked since early
June when the 1880 private lend
ing institutions participating in the
FILA program were called upon to
cooperate with the Presidents anti
imitation program by urging their
FHA borrowers to use increased
earnings to reduce the Indebtedness
on their homes. Mr.. Ferguson said.
During the four months since the
Presidents message was distributed
to those institutions FHA-insured
mortgages totaling $43,332, ,141 have
been paid off in full in advance
of maturity, an increase of 80 per
cent over the same period in 1941.
Moreover, the average monthly rate
of prepayments was 81 per cent
greater than the monthly rate pre-
vailing during the first five months
of 1912.
470 Million Retired.
During the eight years that the
FHA program has been in operation,
800, 900 small home mortgages total
Ing s4,3ll 100000 have been insured.
Of these, 1000 mortgages totaling
(See LOANS, Page B-2D