HOLC AND FHA

HOLC

• Home owners' loan corporation
• New deal agency
• Established 1933
• Purpose- refinance home mortgages currently in default to prevent foreclosure
• How- by selling bonds to lenders in exchange for home mortages

HOLC

• What it did- granted long term montages to over a million people facing the loss of their homes
• It also assisted mortage lenders by refinancing problematic loans
• The bottom line- Stopped lending circa in 1935, once all available capital had been spent
• Only available to non farm homes less than $20,000
• The end-1951

BUT THAT'S NOT ALL...

FHA

• Federal housing administration
• Insures mortages on single/ multifamily homes+(manufactured homes+hospitals)
• Largest insurer of mortages in world
• Since 1934, insured over 34million properties
• Funded by self generated income + costs tax payers nothing :)