Should Congress bring back the Home Owners Loan Corporation(HOLC)?
Back in the 1930s, with Unemployment Rate above 25% and banks foreclosing on families in record numbers, the Roosevelt Administration proposed a great plan to fix the foreclosure crisis, in what was dubbed the biggest Housing Bust in US History. At the time mortgages were 5-year maturity, with a Balloon Payments at the end of the term. This really hurt homeowners who were becoming unemployed, as banks would foreclose on their homes. In 1933, Congress established the Home Owner Loan Corporation (HOLC) which basically financed the homes of families in distress. What a great idea that was…it worked.
Has congress forgotten about this very successful initiative? Instead of prolonging this crisis, why not establish a 21st Century HOLC? Maybe establish longer mortgage maturities? We need bold solutions for this crisis.
See it on my Outside Blog at www.LloydMcKenzie.com
C. Lloyd McKenzie, MBA
Berkshire Hathaway HomeServices
New Mexico Properties/Allstar, REALTORS
6739 Academy Rd. NE SU 200
Albuquerque, New Mexico 87109
Areas Served: Albuquerque Metro/ Algodones/ Bernalillo/ Cedar Crest/ Corrales/ Edgewood/ Los Lunas/ Los Ranchos de Albuquerque/ Placitas/ Rio Rancho/ Sandia Park/ Tijeras