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

Now what need is there for doing this sort of thing? I hold in my hand, Mr. Chairman, a section of last night’s Star, which I have cut out. Here are six reputable loaning agencies in Washington, one of them representing the Metropolitan Life, another the Prudential, another an insurance company on its own initiative, who are loaning, and they are advertising for borrowers. Why load us with the expense and with the burden of this bill?

-
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

How much limitation do you put on your Federal Reserve in running your banking business of this country? There is no limit to that.

-
Harry E. Karr, Real Estate Board of Baltimore, Testimony, Committee on Banking and Currency. Senate.
05/16/1934 | Full Details | Law(s): National Housing Act

We do not think there is either any social or any economic necessity for the insurance of present mortgages.

-
Friedlander, President of the Gibraltar Savings & Building Association, Houston, TX. And Vice-President of the United States Building & Loan League, Testimony. Committee on Banking and Currency. Senate. May 16-19, 21-24, 1934.
05/16/1934 | Full Details | Law(s): National Housing Act

…we object to the bill on the ground that there is no limitation of interest to be charged to home owners by agencies that enjoy the benefit of the act at the expense of all taxpayers, including the victimized home owners.

-
Miss Marie L. Obenauer, Joint Chairman, Board of Governors of Home Owners’ Protective Enterprise, Testimony. Committee on Banking and Currency. Senate.
05/16/1934 | 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.