National Housing Act
The National Housing Act was passed by Congress, and signed into law by FDR, in 1934. It created the Federal Housing Authority (FHA), an agency designed to boost loans for building houses. Before the Great Depression, the federal government had very little involvement in the housing market, so the FHA role was groundbreaking.
This bill is one of those hidden pieces of legislation that radically transformed the possibility for the American working class to have a middle-class life at home, all built on federal guarantees to regulation of the mortgage industry and the mechanics to push money into the hands of homeowners. It propped up whole industries and paved the way to the suburbs that brought workers out of slum and into new (or improved) homes.
Cry Wolf Quotes
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.
How much limitation do you put on your Federal Reserve in running your banking business of this country? There is no limit to that.
I am speaking first because I am a home owner, and every member of my family has been a home owner, and my home is not a failure. I say that if this bill goes through that my home will be a failure, and every other home built in America on materials that have been used for 1,500 years, and I say that the United States should not be an experimental agency for those who wish to have them exploit scientific houses. I say further that the American home can be protected by Congress, and Congress only, and if this Government is to survive as a democracy, for God’s sake, kill this bill.
Gentlemen, most of the home owners want to keep their credit. We are not asking that we escape our responsibilities; we just want to find a way to pay, and we do not want you to make it harder for us.