Home Owners' Loan Corporation
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The Home Owners' Loan Corporation (HOLC) or Home Owner's Refinancing Act, was a New Deal agency established in 1933 under President Franklin Roosevelt. Its purpose was to refinance homes to prevent foreclosure. It was usually used to extend loans from shorter, expensive payments of 15 year loans to lower payments of 30 year loans. Through its work it granted long term mortgages to over a million people facing the loss of their homes. The HOLC stopped lending activities in June 1936 by the terms of the HOLC act. HOLC was only applicable to nonfarm homes. HOLC also bailed out mortgage-holding banks. The HOLC was essentially a failure because many homeowners could not pay their mortgages. The HOLC made about 1 million low-interest loans between June of 1933 and June of 1936.
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