Housing/Mortgages
The federal government has been involved in housing since the formation of a Congressional commission in 1892 to investigate slum conditions in the nation’s cities. During WWI and WWII the federal government constructed and managed housing for defense workers and military personnel. Since the National Housing Act was signed into law by FDR in 1934 the federal government has helped middle and working class families acquire home loans through regulation of savings and loan industry, subsidized loans and other mechanisms. These policies have transformed and dramatically expanded the opportunity for homeownership and helped to create the middle class in the U.S.
Cry Wolf Quotes
…the bill holds little or no relief for the home owner and threatens real harm to the home-owning family.
I say that when you set up that type of corporation and you set up that sort of insurance company and operate it in the manner proposed, you are going to close every building association in the United States. They cannot survive under it to save their souls. This is the heart of this whole bill.
What is more, I do not believe that the home-owning family, with its back against the wall, fighting for the protection of its children, fighting for a way to live in some other way than on Mr. Hopkins’ relief rolls is going to jeopardize the family shelter for any such purpose. I think it is nothing short of a crime to use the money of the taxpayers to incite people to go into debts they do not know how they are going to meet and by which they are going further to jeopardize the family shelter.
A mortgage is just one of the things that you cannot guarantee. When the real-estate market completely goes to the bad and crashes, there is not money enough in this country or any other country to sustain mortgages at an even level. They have got to take the go-down, just the same as any other security or any other commodity.
Related Laws and Rules
Evidence
-
Federal Reserve Bank of San Francisco Shuts Down Critics of the Community Reinvestment Act
The Community Reinvestment Act had nothing to do with the subprime crisis.
-
Community Reinvestment Act Did Not Fuel the Subprime Crisis
The Community Reinvestment Act did not create an overabundance of risky loans.
-
Inclusionary Housing: A Good Solution to Create Affordable Housing
In defense of inclusionary housing.
Backgrounders & Briefs
Good Rules: Ten Stories Of Successful Regulation
Demos looks at ten laws and rules that we take for granted.
Community Reinvestment Act Policy Brief
By Philip Ashton, UIC
The Community Reinvestment Act (CRA) has been critical to the expansion of responsible credit for low- and moderate-income borrowers since its passage in 1977.
Resources
The Center for Responsible Lending promotes and advocates legislation to defend lower income Americans from abusive or predatory lending practices.
