The majority of loans went to farmers for mortgages and crop loans or to the Home Owners' Loan Corporation (HOLC) to purchase troubled mortgages and refinance them.
The New Deal sought to solve the mortgage crisis by creating the Home Owners' Loan Corporation (HOLC).
Treber, "The Influence of the Home Owners' Loan Corporation on Housing Markets During the 1930s," NBER Working Paper No.
The type of agency being suggested," said Wheelock, "would closely mimic one from the Great Depression called the Home Owners' Loan Corporation.
During the 1930s, five major agencies were created to provide liquidity for home lenders, reduce the number of home loan foreclosures, and reform the mortgage market -- among them the Home Owners' Loan Corporation (HOLC).
It summarizes the major federal initiatives to reduce foreclosures and reform mortgage market practices, focusing especially on the activities of the Home Owners' Loan Corporation (HOLC), which acquired and refinanced one million delinquent mortgages between 1933 and 1936.
The creation of a new federal corporation to purchase distressed mortgages would mimic a similar agency, the Home Owners' Loan Corporation (HOLC), that was established to purchase delinquent home mortgages during the Great Depression.
The Home Owners' Loan Corporation (HOLC) was created as an agency of the Federal Home Loan Bank Board by an act of Congress in 1933.
The Home Owners' Loan Corporation was brought into being overnight, as a result of the real estate collapse.
Since its inception the Home Owners' Loan Corporation has revised its approaches considerably.
Well Worth Saving tells the story of the disastrous housing market during the Great Depression and the extent to which an immensely popular New Deal relief program, the Home Owners' Loan Corporation
(HOLC), was able to stem foreclosures by buying distressed mortgages from lenders and refinancing them.
The term 'redlining,' which refers to the practice of designating certain lower-income or minority neighborhoods as ineligible for credit, appears to have originated in 1935, when the Federal Home Loan Bank Board asked the Home Owners' Loan Corporation
to create 'residential security maps' for 239 cities that would indicate the level of security for real estate investments in each surveyed city.