Home Owners' Loan Corporation [SEP] inception
Home Owners' Loan Corporation
The Home Owners' Loan Corporation (HOLC) was a government-sponsored corporation created as part of the New Deal. The corporation was established in 1933 by the Home Owners' Loan Corporation Act under the leadership of President Franklin D. Roosevelt. Its purpose was to refinance home mortgages currently in default to prevent foreclosure.
Operations.
The HOLC issued bonds and then used the bonds to purchase mortgage loans from lenders. The loans purchased were for homeowners who were having problems making the payments on
Bank’s outstanding consolidated obligations.
History.
As a result of the Great Depression the FHLBanks were established by the Federal Home Loan Bank Board (FHLBB) pursuant to the Federal Home Loan Bank Act of 1932. This was in order to provide funds to "building and loan" institutions, providing liquidity and making mortgages available.
Initially, the FHLBanks made direct loans to home owners, but transferred this responsibility to the Home Owners' Loan Corporation when it was created the following year.
As a result of