Definitions

Homeowners Refinancing Act

Homeowners Refinancing Act

The Homeowners Refinancing Act was an Act of Congress (in the United States) passed as part of Franklin Delano Roosevelt's New Deal during the

Great Depression to help those in danger of losing their homes. The act, which went into effect on June 13, 1933, provided mortgage assistance to homeowners or would-be homeowners by providing them money or refinancing mortages.

Sponsored by Senate Majority leader Joe Robinson of Arkansas, it also created the Homeowners' Loan Corporation (HOLC), building off of Herbert Hoover's Federal Loan Bank Board. The Corporation lent low-interest money to families in danger of losing their homes to foreclosure. By the mid 1930s, the HOLC had refinanced nearly 20% of urban homes in the country.

History

Having won a decisive victory in the United States presidential election of 1932, and with his party having decisively swept Congressional elections across the nation, Roosevelt entered office with unprecedented political capital. Americans of all political persuasions were demanding immediate action, and Roosevelt responded with a remarkable series of new programs in the “first hundred days” of the administration, in which he met with congress for 100 days. During those 100 days of lawmaking, Congress granted every "request" Roosevelt asked.

References

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