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selves. Working day and night, they did a splendid job. They had a real enthusiasm for it. They were interested in it from the standpoint of the welfare of their fellow citizens. They applied themselves to it with a real devotion, thinking neither of hours nor of pay.

Another thing to be said is that the people employed in this organization have had an experience in the mortgage business, more varied and intensive than that ever before offered by any other mortgage institution. As a result of this training, they have, with few exceptions encountered very little trouble in obtaining satisfactory employment in private organizations as we have had to drop them out. Although we have reduced the number of our employees by something like 75 percent, very little in the way of hardship has been occasioned by it.

BALANCE OF ORIGINAL LOANS AND ADVANCES OUTSTANDING

Mr. WIGGLESWORTH. Mr. Fahey, in your justifications, pages 4 and 5, you show original loans of something over three billion and advances to borrowers making a cumulative gross indebtedness of $3,263,000,000. You deduct from that principal repayments of $956,000,000, and you make a further deduction of $786,000,000 which is entitled “Balance transferred to property or other accounts." What is the meaning of that?

Mr. FAHEY. That is the book value transferred from loan to property account as a result of the properties we have been obliged to repossess.

Mr. WIGGLESWORTH. That you have taken over?
Mr. FaHEY. Yes.

Mr. WIGGLESWORTH. So that the figure of original loans and advances outstanding today of $1,521,000,000 is on the basis of realizing 100 percent on that property?

Mr. Fahey. The $786,000,000 has reference, not to loans outstanding, but to loans foreclosed.

Mr. FITZPATRICK. But you would not have to realize 100 percent on the value of that property because the interest on the loans will form a surplus?

Mr. Fahey. We have accumulated reserves against losses and are continuing to do so.

Mr. WIGGLESWORTH. You say there is $1,521,000,000 outstanding Mr. Fahey. That is the balance of our original loans.

Mr. WIGGLESWORTH. That is what I am talking about; but to arrive at that figure in this table you have made a deduction of $786,000,000 plus, entitled “Balance transferred to property or other accounts."

Mr. FaHEY. “Other accounts” means vendee accounts.

Mr. WIGGLESWORTH. Is that the cash value realized from the property?

Mr. FAHEY. That is the book value transferred to property account.

Mr. WIGGLESWORTH. Then is not the statement correct that if you realize less than the book value the amount outstanding will be increased to that extent?

Mr. CATLETT. Your $1,521,000,000 is the total of principal and interest now due on the outstanding loans.

Mr. WIGGLESWORTH. $786,000,000 in property having been accepted?

Mr. CATLETT. That is the property we foreclosed on.

Dr. HUSBAND. And of that amount only $288,000,000 represents the book value of the property we owned as of September 30, 1941.

Mr. Fahey. The rest of it we have sold. As a result of these sales, we have set up new loans, which we call vendee accounts to differentiate them from the original loans. The first figure that you read there, Mr. Wigglesworth, is for original loans.

Mr. WIGGLESWORTH. I understand. So there is about 50 percent of the original loans outstanding today?

Mr. Fahey. Yes; in dollar amounts, just about that.

ORIGINAL LOANS PAID IN FULL

Mr. WIGGLESWORTH. Now, if I read your justification right, about 109,000 loans aggregating $263,000,000 have been paid in full?

Mr. FAHEY. That is right.

Mr. WIGGLESWORTH. That is, about 10 percent have been paid in full?

Mr. FaHEY. That is right.

EXTENSIONS ON LOAN

Mr. WIGGLESWORTH. And there have been, or will be shortly, about 342,000 cases of extension, or about 33 percent in number of the loans originally made?

Mr. FAHEY. That is right.

Mr. FITZPATRICK. Pardon me. Would it be 33 percent of the original loans made that will get an extended time?

Mr. WIGGLESWORTH. In number.

Mr. Fahey. In number. Of course, some of those extensions are not for 25 years. We make extensions in some cases for shorter periods.

Mr. WIGGLESWORTH. In that connection, will you furnish for the record a table which will show those 342,000 extensions, broken down by periods of extension? Mr. FaHEY. You mean by years?

Mr. WIGGLESWORTH. No; I want to see what percentage of them have been extended for each period.

Mr. Fahey. We have that figure here of how many have been extended up to 15 years and how many of them run to 25 years.

Mr. WiGGLESWORTH. Are those the only two classifications?
Mr. Fahey. That is what practically all of them are.
Mr. WIGGLESWORTH. Either 15 or 25?

Mr. Fahey. Some of them are in between. Some might be 18 or 20 years. It depends upon the particular case. But those are the two classifications we have here.

(The statement requested is as follows:) Home Owners' Loan Corporation, number of extensions Sept. 30, 1940 (prior to

Mead-Barry Act)
United States...

88, 048 | Regions-Continued.
Memphis.-

8, 639 Regions:

Chicago.

10, 683 New York...

8, 908
Detroit.

9, 929
Baltimore
10, 368 Omaha.

5, 908 Cincinnati..

12, 322
Dallas.

1, 712 Atlanta.

6, 806
San Francisco...

12, 773

Debtor accounts extended from Oct. 1, 1939, to Nov. 30, 1941, grouped by months in

arrears at time of extension

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Mr. WIGGLESWORTH. Now I want to get for the record a few tables such as you gave us last year. I would like to have similar tables to those appearing in last year's hearings at page 169, entitled “Total debtor accounts in default, number and amount of arrearage”; at page 171, entitled "Net number and loan balances transferred to property by foreclosure or voluntary deed”; at page 172, entitled Special report of property management operations showing owned properties on hand and capital value”; and at page 175 to page 181, entitled "Special report of property management performance for the fiscal year”—I should appreciate it if you will bring those up to date.

You might also give us a table similar to that on page 163 entitled “Summary of legal costs incident to foreclosures,” and so forth.

(The matter requested is as follows:)

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Net number and loan balances transferred to property by foreclosure or voluntary

Mortgage loans

Vendee accounts

Number

Amount

Number

Amount

2,721

$7, 478, 332.08

189, 387 $796, 566, 958. 43 60,572 361, 782, 007. 99

338

1, 248, 823. 56

2, 351

632 9, 659

385 13, 499 32, 261 1, 422

363

12,834, 538. 34

1, 901, 492. 43 51, 268, 901. 16

1, 323, 145. 58 80, 365, 047.67 205, 811, 415. 24

6,937, 347.32 1, 340, 120.25

9 5 75 13 70 164

8 4

49, 570. 29

6, 733. 85 217, 509.08

31, 951. 02 254, 227. 20 654, 446. 99 24, 975. 93 9, 409. 20

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16,020

58, 758, 115. 47

193

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597, 036. 50

deed to Nov. 30, 1941

Total

Number

Amount

United States..

Region 1, New York....

Connecticut..
Maine.
Massachusetts.
New Hampshire.
New Jersey.
New York.
Rhode Island.

Vermont..
Region 2A, Baltimore...

Delaware..
District of Columbia.
Maryland.
Pennsylvania.
Virginia..

192, 108 $804, 045, 290.51
60,910 363,030, 831. 55
2, 360

12,884, 108.63 637 1, 908, 226. 28 9, 734

51, 486, 410. 24 398

1, 355, 096. 60 13, 569 80, 619, 274.87 32, 415

206, 465, 862. 23 1, 430

6,962, 323. 25 367 1, 349, 529. 45 16, 213 59, 355, 15.97

230 819, 824. 89 239

1, 608, 002. 81 3, 443 11, 999, 035. 67 10, 214 37, 431, 459.85 2,087 7,496, 828.75

232 3, 418 10, 112 2,032

4 7 25 102 55

9,495.73 50, 210. 23 77, 916. 45 325, 766.95 133, 647. 14

Net number and loan balances transferred to property by foreclosure or voluntary

deed to Nov. 30, 1941-Continued

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