Repairing a Mortgage Crisis: HOLC Lending and its Impact on Local Housing Markets
AbstractThe Home Owners’ Loan Corporation purchased more than a million delinquent mortgages from private lenders between 1933 and 1936 and refinanced the loans for the borrowers. Its primary goal was to break the cycle of foreclosure, forced property sales and decreases in home values that was affecting local housing markets throughout the nation. We find that HOLC loans were targeted at local (county-level) housing markets that had experienced severe distress and that the intervention increased 1940 median home values and homeownership rates, but not new home building.
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Bibliographic InfoPaper provided by University of North Carolina at Greensboro, Department of Economics in its series Working Papers with number 10-1.
Length: 37 pages
Date of creation: 08 Jul 2010
Date of revision:
HOLC; Home Owners Loan Corporation;
Other versions of this item:
- Courtemanche, Charles & Snowden, Kenneth, 2011. "Repairing a Mortgage Crisis: HOLC Lending and Its Impact on Local Housing Markets," The Journal of Economic History, Cambridge University Press, vol. 71(02), pages 307-337, June.
- Charles Courtemanche & Kenneth A. Snowden, 2010. "Repairing a Mortgage Crisis: HOLC Lending and its Impact on Local Housing Markets," NBER Working Papers 16245, National Bureau of Economic Research, Inc.
- N00 - Economic History - - General - - - General
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