Evening star., 1942-09-05
FHA-lnsured Loans
For 8-Year Period
Total Over { Billions
One Third Of Amount
Paid OFF by Families
And Property Owners

Private lending institutions have
made Federal Housing Administra-
ton Ensured loans of more than
$4,000, 100000 for the construction
purchase or repair of homes since
the start of this Federal operation
eight years ago. Abner H. Ferguson
commissioner, announced today.
The report states that through
regular payments about one-third OF
the total amount Of insured
loans have been paid off by families
and property owners taking part in
the Federal program.
The private residential lending
stimulated by the FHA program has
involved almost 5000, 900 individual
properties, the commissioner pointed
out. These include approximately
$4,000 one to four family homes
financed by mortgages exceeding
$4,000, 100000 in original amount
which we're insured under Titles II
or VI of the National Housing Act,
and approximately 100000 repair
or modernization loans totaling more
than $1,000 900 900 which were in
sured under Title I. In addition,
mortgages of approximately s145,-
100000 on large scale rental housing
Projects have been insured under
section BOT.
Revived Building Industry.
During peacetime, the FHA loan
insurance program was largely re-
sponsible for the reopening of the
private mortgage lending market
and for the revival of the home
construction industry" Mr.. Ferguson
declared. ITO the consumer, the
FILA plan offered the soundest home
financing terms in history as well
as convenient method for repay
ment of home Indebtedness out of
current monthly earnings.
Under wartime conditions, the
FHA program has played an equally
vital role by providing the principal
financing vehicle for the construc-
ton of war housing by private en-
terprise."
Since July /. 1910, when the hous-
ing problem first became acute in
the war industry centers. approx
mately 100000 home mortgages to-
falling more than 81 ,9O0, 900, 900 have
been issued by the FHA. BY far the
greatest proportion of these prop
critics were located in the shortage
areas.
Because of acute shortages of war
materials, new construction financed
under the FILA program is now re-
stricted to the most urgently needed
housing for war workers in the des-
ignated critical areas and is insured
under Title VI, which was added to
the National Housing Act by Con-
gress for the specific purpose of
facilitating privately financed war
housing. The facilities of Title II
remain available for the insurance
Of mortgages on existing houses.
Expense Is Budgeted.
Under Title I, more than 1,400 900
loans totaling approximately $685.
900 900 have been insured since July
l, 1910. Title loans are now limited
W PtoJCtec lAoNAua1S du0AoAOIldl NV.
ing accommodations for war work.
ers through the conversion or re-
habilitation of existing structures, |
or to essential repairs and mainte-
nance.
All loans insured by the FHA are
retired by equal monthly payments
to principal and interest extending
over the full term of the obligation.
This procedure enables homeowners
to budget their housing expenses on
a monthly basis, with consequent
lessening of the chances OF default
and foreclosure. Under current con-
ditions, furthermore, FILA borrowers
are being encouraged to apply in
creased wartime earnings to the re-
duction of their mortgage debt at a
faster rate than that called for by
their mortgage contracts
The FHA's credit experience in
dicates the soundness of its monthly |
debt-reducing financing plan. Less
than four-tenths of / per cent of |
all home properties financed by
FHA-insured mortgages have been |
foreclosed and turned over to the
FHA by private lending institutions