Mortgage Statistice

Press, Volume CX, Issue 32306, 26 May 1970, Page 14

Mortgage Statistice

Sir, —While studying statis-i tics dealing with mortgage registratipns and discharges, sources of mortgage finance, etc., 1 am rather stumped by the following note in the 1969 Year Book: “Points to note in considering statistics of mortgages by source of finance are that most trading bank mortgages specify neither interest rates nor the amounts involved; and that the Government Life Insurance Office and the State Insurance Office are included among Government agencies, not with insurance companies.” Thus, in assessing the source of finance under the categories of trading banks and insurance companies, we may assume that this printed information in the Year Book and the Monthly Abstract of Statistics is correct in every detail except the figures. Would this be a fair conclusion to draw?—Yours, etc.,

G. M. EDMONDS. May 11, 1970. [The Government Statistician (Mr J. P. Lewin) replies: “When the statistical series for sources of mortgage finance was instituted in . 1962 the decision was made to include all lending under Government control under the heading of ‘Government.’ —This does, of course, mean that loans by the State Insurance Office and the Government Life Insurance Office come into this category. This can be defended, although there is some substance in the argument that they might well be included under the heading of insurance companies. The qualification about trading bank mortgages indicates that the total for trading bank mortgages and the grand total are understated because most mortgage documents of trading banks registered by district land registrars (which are the source of the statistics) do not specify an amount or a rate. This follows from the more flexible nature of bank lending. Trading bank mortgages in the main are for the purpose of securing advances made under their ‘current account’ procedure and the amount secured varies according to the state of the account. It is standard practice to point out special features about a particular statistical series. Generally, users find these notes most helpful in assisting them to a better understanding of the figures presented.”]