MORTGAGES AS LIFE INSURANCE COMPANY INVESTMENTS.

The article discusses the soundness of farm and home mortgage portfolios for life insurance companies, specifically farm loans, residential mortgages, and loans on apartments and business properties. The article details the features of these different investments and discusses the impact of the depression and the resulting government intervention intended to manage the crisis. In the case of insurance companies, government intervention was of little benefit. Insurance companies made appropriate adjustments to enjoy a satisfactory return on investment, including the introduction of monthly loan payments. Backed by the insurance of loans by the Federal Housing Administration, the article argues that mortgage loans have proven a good investment for the insurance industry.