Back in the 70s I made a bunch of these hangings for friends and family. It was probably in Better Homes & Gardens or McCall's. The letters are felt with embroidery. I've been putting "Loy" up each year since I made it.
We call it Loy because while the O and Y are attached at two points, the J isn't and keeps flipping around, looking more like an L. It got named Loy sometime early on and has kept it's name since. I'm not sure when I made these puffy pixies. They're some sort of stretch synthetic, with polyester knit faces and hands and fake fur. Again, I made dozens to give to everyone (at one point I was making about 100 ornaments each year for friends and family. That did not last long!) The Elves are red or green and I kept two to hang from our bookcase.