NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Repairing a Mortgage Crisis: HOLC Lending and its Impact on Local Housing Markets

Charles Courtemanche, Kenneth A. Snowden

NBER Working Paper No. 16245
Issued in July 2010
NBER Program(s):   DAE

The 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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Document Object Identifier (DOI): 10.3386/w16245

Published: 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. citation courtesy of

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