Builders back Martin

Preston Martin, former chief of the Federal Home Loan Bank Board, is the choice of the National Association of Home Builders (NAHB) to succeed Paul Volcker as chairman of the Federal Reserve Board (FRB).

Now vice-chairman of the board, ''Martin is the only member on the board who understands what money is,'' says Michael Sumichrast, chief economist of the NAHB.

''Martin came out of business and has made a lot of money,'' he adds. ''Most of the other members of the FRB came out of government.''

Mr. Volcker's term expires Aug. 6.