Show FUNDS FUNDS' FOR HOMES SUPPLiED BY BANKS By Dr ROME nOME C C. STEPHENSON R R. American Bankers Association A l 1 LARGE portion of ot the funds required re re- required J In home building always has been furnished by banks They have havo shown constantly constantly con con- a deep interest interest in in- terest in the performance performance per per- of ot this feature of ot national development Upon Up Up- i tj j- j on It rests much mucho o of our country's t f future u t u r e a stability and any contribution contribution tion to its ita advancement ad ad- L v a. a n com e n t redounds to the advantage of ot all R. R C. C STEPHENSON So banking has never permitted its operative co attitude toward home homebuilding homebuilding homebuilding building to lessen Practically all banks now accept savings sav saw ings lags deposits deposit which can well be turned to the advantage of the home builders The construction of ot individual dwellings dwellings dwell dwell- ings requires a large largo amount of ot financing ing lag and h is a I. I thoroughly commendable enterprise Necessarily the aid ald given to home builders is governed by the sound banking rules which have grown out of the years of ot experience and tho tiro th constant studies les of bank practices All of tho the efforts made to secure broader real estate loan privileges to adjust resources to make make- it possible to lend larger larger- sums for long terms the tha standardization ion of or mortgage loan for formulas formulas mulas and amI the actual lending of ot vast sums on mortgage notes evidence the tho desire of banks to contribute a full measure of cf support to the homebuilding home build ing movement This is true of ot all classes class clas es of banks but even in a more marked marke degree of those whose deposits ar ara largely in the form of ot savings ravings and whose loans are primarily for building or home purchasing purposes Both Doth Sides Projected The process through h which bank loans arc are made mado on real estate is as simple as the tho nature of ot su such h an Important Im Ira transaction will permit When ey is advanced the lender must know that repayment will be made th the tho specified time Likewise the borrower wants to be assured that after he has figured tho the loan on the tho basis of ot his conservatively anticipated ability to toay pay ay he will not be required to do more that he will not be disturbed In his efforts efforts ef et forts to work out of ot his obligations under those terms Whether his agreement agreement agree agree- ment Is to repay the entire loan in three or five years or or on a monthly or 01 yearly basis he wants the assurance that no additional burdens will be imposed imposed im im- posed upon him All of ot this is settled definitely in advance There I is no mystery about any of ot the details and when tho the negotiations are complete the borrower knows just what he lie may expect and what he ho will be re required required re- re to d do t to m meet et his obligations Loans made to persons who wish to acquire homes are not necessarily building loans One may wish to purchase purchase pur pur- chase a n home already constructed In Inthis Inthis Inthis this form of transaction bank lo loans ns are used very freely because it is the only kind of ot a real estate loan some ome classes of ot banks may make Others of ot course may lend upon real estate with improvements improvements im uncompleted and advance funds as the construction progresses Different styles in home financing have developed in the various states and banks have tried io to adapt their facilities facilities ties to the needs Whatever character of ot assistance is required In any particular par par- particular instance usually can be found in some somo bank banI in the local community Among banks and borrowers for home acquisition purposes a long established established and thoroughly tested relationship relation ship exists Banks are not the only agencies through gh which such funds ar are available they do not embody all the tho spirit of ot helpfulness which abounds However through gh the years of their operation co their aid has been of ot unquestioned unquestioned un un- questioned value to the home hom builders whose efforts to establish a n permanence for tor themselves have received constant encouragement Bankers everywhere are ready rendy to counsel with their custom custom- customers ers about their home building plans and to assist to the extent of ot their ability This is being done constantly and the tho many advantages of ot it are not without recognition |