savings and loan

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savings and loan

n. a banking and lending institution, chartered either by a state or the Federal government. Savings and loans only make loans secured by real property from deposits, upon which they pay interest slightly higher than that paid by most banks. In the early 1980s savings and loans were "de-regulated," allowing them to make loans for speculative land development, removing high reserve funds requirements, and in allowing savings and loans' funds to participate in competition with banks. The result was use of many savings and loans for speculative and dishonest investments, lack of controls, and tremendous losses to thousands of depositors. However, a properly-managed, conservative savings and loan which concentrates on real estate loans guaranteed by the FHA (Federal Housing Administration) and/or sold in the secondary mortgage market can be safe, profitable, and provide a valuable channel for savings into the home finance market.

References in periodicals archive ?
Savings and loan executives, understanding that their survival depended on political favor, became powerful political animals.
They even had their own lobby: the National Savings and Loan League.
To date, most of the savings and loans taken over by banks have been wards of the RTC - in other words, dead.
The savings and loan name may change - indeed, many savings and loans already have renamed themselves banks - but they will continue to fulfill an important function in the housing market as originators of home loans.
The ornate branches gathered enough of the growing wealth of Southern California to make Home Savings the nation's largest and in many ways most successful savings and loan.
Home Savings, in short, has finally discovered that the savings and loan business is fundamentally an anachronism.
With that appraisal in hand, the condo buyer goes to the local savings and loan.
The local savings and loan, probably plagued by an anemic cash flow, was able to draw in new loans and new loan fees.
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