Show FUNDS FOR HOMES SUPPLIED BY BANKS by ROME C stephenson president american bankers association A LARGE portion of the funds required in home building always has been furnished by banks they have shown con brantly a deep interest in the performance for mance of this feature of national development upon it rests much of our count rys future stability and any alon to its advancement van cement resounds redounds red to the advantage of all K C stephenson so banking has never permitted its operative cooperative co attitude toward borne building to lessen practically all banks now accept savings deposits which can well be turned to the advantage of the home builders the construction of individual dwellings requires a large amount of financing and Is a thoroughly commendable enterprise necessarily the aid given to home builders Is governed by the sound banking rules which have grown out of the years ot experience and the constant studies of bank practices all of the efforts made to secure broader real estate loan privileges to adjust resources to make it possible to lend larger sums tor long terms the standardization of mortgage loan formulas and the actual lending of vast sums on mortgage notes evidence the desire of banks to a full measure of support to the home building movement this Is true of all classes of banks but evea in a more marked degree of those whose deposits are largely in the form of savings and whose loans are primarily tor building or home purchasing purposes both sides protected the process through which bank loans are made on real estate Is aa simple as the nature of such an important transaction will permit when money Is advanced the lender must know that repayment will be made the specified time likewise the borrower wants to be assured that after he has figured the loan on the basis of his conservatively anticipated ability to pay he will not be required to do more that be will not be disturbed in his efforts to work out of bis obligations under those terms whether bis agreement Is to depay the entire loan in three or five years or on a monthly or yearly basis he wants the assurance that no additional burdens will ba imposed upon him all of this Is settled definitely in advance there Is no mystery about any of the details and when the negotiations are complete the borrower knows just what be may expect and what he will be required to do to meet hla obligations loans made to persons who wish to acquire homes are not necessarily building loans one may wish to purchase a home already constructed in this form of transaction bank loans are used very freely because it Is the only kind of a real estate loan some classes of banks may make others of course may lend upon real estate with improvements prove ments uncompleted and advance funds as the construction progresses different styles in home financing have developed in the various banks hare tried to adapt their facilities to the needs whatever character ol 01 assistance la required in any particular instance usually can be found in some bank in the local community among banks and or home acquisition purposes a lone established and thoroughly tested relation ship exists banks are not the only agencies through which such funds are available they do not embody all the spirit of helpfulness which abounds however through the years of their co their aid has been of unquestioned value to the home builders whose efforts to establish a permanency perman enco tor themselves have received constant encouragement bankers everywhere are ready to counsel with their customers about their home building plans and to assist to the extent of their ability this Is being done constantly and the many advantages of it are not without recognition |