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
Mr. Chairman, the country does not want to give away its birthright to capital, and this sets up capital and a political organization at the top of it. It is the marriage of capital and politics, and you cannot escape it to save your life.
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.
…we are convinced that first and most fundamental, the bill sets up machinery which leads straight for Federal regimentation of American home-buying, home building, home finance, and home repair.
There were many reasons why many of us who ordinarily would not like regimentation of industry—and we do not like regimentation of agriculture or any of the other instrumentalities of production—saw reasons under the emergency why it should be done, as an emergency say. But none of the reasons for which that was done in that character of industry holds good for any bill that will lead to a regimentation of American citizens, to say what he shall do with his individual home.
Related Laws and Rules
Evidence
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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.
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Community Reinvestment Act Did Not Fuel the Subprime Crisis
The Community Reinvestment Act did not create an overabundance of risky loans.
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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.
