Housing/Mortgages

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

Taken as a whole, the effect of the creation of the insurance corporation is to put the Government directly into the lending business, not only for the repair of homes, but for the installation of frigidaires, water heaters, and other equipment, and as to which there would be no lien whatever. Furthermore, it puts the Government directly into the business of lending as much as 80 percent for the construction of new homes, and an unlimited percent for low-cost housing. The practical application of this act would be to drive existing lending institutions out of business; and by reason of loans where there is no security, will mean untold losses to the Government.

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Maco Stewart, Galveston, TX, Attorney, Testimony, Committee on Banking and Currency. Senate.
05/16/1934 | Full Details | Law(s): National Housing Act

If you let us alone and not throw on us all of the burden that is involved in this bill, we can work out our problem. The collective action of home owners of America, dealing with decent and reputable and fair-minded business men, will work out our common problems.

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Miss Marie L. Obenauer, Joint Chairman, Board of Governors of Home Owners’ Protective Enterprise, Testimony. Committee on Banking and Currency. Senate.
05/18/1934 | Full Details | Law(s): National Housing Act

This act would affect building conditions in my State. While in many districts the population is quite dense, the districts are widely scattered. The irrigation districts are densely populated, but then there will be wide areas where there is practically no population at all. When you limit the radius to 50 miles you are putting out of business a good many of our building and loan associations because they cannot operate in an area supported by the business they will have in the small areas covered in this bill.

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Hon. Compton I. White, Idaho Congressman , Testimony, Committee on Banking and Currency. House.
05/18/1934 | Full Details | Law(s): National Housing Act

The enactment of the foregoing bill as introduced would, in our opinion, eventually ruin the original home thrift institutions, such as ours, and approximately 11,000 others in the United States holding the savings of 10,000,000 of our people in the aggregate sum of approximately $8,000,000,000.

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Telegram from H.J. Hull in the statement of Hon. Compton I. White, Idaho Congressman, Testimony, House Committee on Banking and Currency.
05/18/1934 | Full Details | Law(s): National Housing Act

Evidence

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.