|
Home Owners Loan Corporation
Facts for kids
The following fact
sheet contains interesting facts and information on Home Owners Loan Corporation
for kids.
Facts
about the Home Owners Loan Corporation for kids
Home Owners Loan Corporation Fact 1:
The Home Owners’ Loan Corporation was
a federal program established in 1933 to provide relief
to troubled mortgage borrowers and their lenders.
Home Owners Loan Corporation Fact
2: The Home Owners’ Loan Corporation (HOLC)
operated by purchasing mortgages from private lenders
and issuing new mortgages to the borrowers.
Home Owners Loan Corporation Fact 3:
The HOLC provided relief by offering lenient
terms for HOLC mortgages and the reduction of the principal debt
owed.
Home Owners Loan Corporation Fact 4:
The HOLC granted long-term mortgage loans to
nearly 1 million homeowners who were facing loss of their property.
Home Owners Loan Corporation Fact
5: Background history: Prior to the Great Depression
mortgage loans typically required high down payments, typically 35%
or more, and had repayment terms of between 5 to 10 years. A large
"balloon" payment was made at the end of the loan.
Home Owners Loan Corporation Fact
6: Background history: As the economic crisis
deepened and unemployment soared homeowners were increasingly unable
to meet the balloon payment, had to either refinance the loan or
face foreclosure. A middle-class house worth $5,000 in 1926 was
worth only $3,300 in 1932.
Home Owners
Loan Corporation Fact 7: Background history: The number of mortgages had
dropped from 5,778 in 1928 to just 864 in 1933 and the average value
of homes fell between 30% - 40%. Foreclosures jumped from 150,000 in
1930 to 250,000 in 1932.
Home Owners Loan Corporation Fact
8: Background history: Many banks had
failed, dragging homeowners down with them. To meet
their own debts, banks had called in "balloon" payments
and liquidated the mortgages. With banks needing liquid
assets (an asset that can be converted into cash
quickly) and no home insurance to protect the owners,
the mortgage industry was in chaos
Facts
about the Home Owners Loan Corporation for kids
Facts
about the Home Owners Loan Corporation for kids
The following fact
sheet continues with facts about Home Owners Loan Corporation for kids.
Facts
about Home Owners Loan Corporation for kids
Home Owners Loan Corporation Fact
9: The June 1933 Home Owners Loan Act
authorized $200 million to set up the Home Owners Loan
Corporation (HOLC) with authority to issue $2 billion in
tax-exempt bonds.
Home Owners Loan Corporation Fact
10: The money raised in tax-exempt bonds
enabled the HOLC to save endangered mortgages by
offering financing up to 80% of assessed value, to a
maximum of $14,000.
Home Owners Loan Corporation Fact
11: The HOLC offered money at 5%, allowed
up to twenty-five years for repayment and provided
insurance for its loans through the Federal Housing
Authority and the Federal Savings and Loan Insurance
Corporation
Home Owners Loan Corporation Fact
12: Instead of a short-term,
interest-only loan, the HOLC loans would be fully
amortizing over 15 years, meaning that when the last
payment was made, the debt was extinguished and the
borrower owed nothing further to the bank and owned the
home free of any debt, ending the practice of "balloon"
payments
Home Owners Loan Corporation Fact 13:
The HOLC rejected over 800,000 mortgage
applications because the household was not in dire need or because
the borrower was not likely to repay the loan
Home Owners Loan Corporation Fact 14:
The HOLC ceased its lending activities in June,
1936, by the terms of the Home Owners' Loan Act.
Home Owners Loan Corporation Fact 15:
The HOLC helped to stabilize and rationalize the
mortgage process and mortgage loans became more affordable for many
more Americans
Facts
about Home Owners Loan Corporation for kids
Home Owners Loan Corporation for kids - President Franklin Roosevelt Video
The article on the
HOLC provides detailed facts and a summary of one of the important events during his presidential term in office. The following
Franklin Roosevelt video will
give you additional important facts and dates about the political events experienced by the 32nd American President whose presidency spanned from March 4, 1933 to April 12, 1945.
Home Owners Loan Corporation (HOLC)
●
Interesting Facts about HOLC for kids and schools
●
Summary of the Home Owners Loan Corporation in US history
●
Home Owners Loan Corporation (HOLC) of important, key
events
●
Franklin Roosevelt
Presidency from March 4, 1933 to April 12, 1945
●
Fast, fun facts about the HOLC for kids
●
Foreign & Domestic
policies of President Franklin Roosevelt
● Franklin Roosevelt Presidency and
HOLC for schools,
homework, kids and children |
