Commercial bank a c t i v i t y in residential non-farm mortgages
is of consequence in the mortgage market and in their
own operations * In 1965? the total amount of mortgage debt
outstanding held by all holders on all properties was $341.7
billion. Of this amount, commercial banks held 14.6$ or |49.7
billion. Total residential non-farm mortgage debt outstanding
held by commercial banks was #32.4 billion in 1965 or 9.5$ of
total national mortgage debt outstanding. Activity in the
residential non-farm mortgage market is a significant commercial
bank function. Residential non-farm mortgage debt outstanding
held by commercial banks in 1965 comprised 16.1$ of its total
loans and amounted to 24.1$ of its time deposits from individuals,
partnerships, and corporations,
A mortgage creates the existence of a debt and requires
a pledge of property to secure it.1 The mortgage note admits
the debt and contains an agreement to repay it in accordance