Home Owner's Loan Corporation

• The Home Owner's Loan Act was established to help people keep their homes.old house image by Tom Oliveira from Fotolia.com
  
  According to The Columbia Encyclopedia, Sixth Edition, 2008, the Home Owner's Loan Corporation was established to lend homeowners the money needed to keep them from losing their homes to foreclosures due to the depression. This lending stopped in 1936 because of stipulations of the Home Owner's Loan Act.
  
  

Home Owner's Loan Act of 1933

• The HOLC lent $3 billion dollars before 1936.US Currency image by JJAVA from Fotolia.com
  
  President Franklin D Roosevelt during the Second Hundred Days and the summer of 1935 established the Home Owner's Refinancing Act which created the HOLC to regulate the lending of these mortgages to homeowners according to United States History, The New Deal(See Reference 2). According to Wiley Blackwell; Blackwell Publishing Inc. it ceased in June, 1936, after it had lent $3 billion in mortgages.
  
  

HOLC Good or Bad

• Most homeowners that borrowed the loans for mortgages from the HOLC lost their homes anyway. They were not able to repay the mortgages and defaulted. However, the HOLC made a profit during this time and the HOLC was beneficial to the economy to help it recover.