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The Home Owners Loan Corporation Act

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In March 1933, millions of people faced the loss of their homes due to large-scale unemployment and by wage reductions in the Great Depression. Many borrowers were unable to meet mortgage payments resulting in a wave of foreclosures and homelessness. The Home Owners Loan Act of 1933 and the Home Owners' Loan Corporation Act was passed by Congress on June 13, 1933 and created the Federal Home Loan Bank Board (FHLBB). The FHLBB was directed to establish a new federal agency, the Home Owners Loan Corporation (HOLC) to provide emergency relief to lower mortgages, to help stabilize real estate that had depreciated, to stop foreclosures and provide relief for troubled mortgage lenders.

Home Owners Loan Corporation
Franklin D Roosevelt (FDR) was

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