A more thorough explanation:

A Building and Loan Association is a group of people who pool their money together to help each other buy homes. Members of the association make regular payments into the fund and own shares in the organization. They can use these shares to get a loan or receive dividends.

For example, let's say a group of people in a community want to buy homes but can't afford to do it on their own. They form a Building and Loan Association and each member contributes a certain amount of money each month. When a member is ready to buy a home, they can use their shares in the association to get a loan.

Building and Loan Associations were popular in the early 1900s when modern forms of mortgages did not exist. They provided a way for working-class Americans to buy homes. However, because the associations had limited funds, they had to come up with a system to decide who received a loan. This could be an auction or a waitlist.

Today, Building and Loan Associations have been replaced by savings and loan institutions that have government backing. However, they played an important role in helping millions of Americans achieve the dream of homeownership.