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

37 Pages Posted: 9 Jul 2010

See all articles by Charles Courtemanche

Charles Courtemanche

University of North Carolina (UNC) at Greensboro - Department of Economics

Kenneth Snowden

University of North Carolina (UNC) at Greensboro - Bryan School of Business & Economics; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: July 8, 2010

Abstract

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.

Keywords: HOLC, Home Owners' Loan Corporation

JEL Classification: N00

Suggested Citation

Courtemanche, Charles and Snowden, Kenneth, Repairing a Mortgage Crisis: HOLC Lending and its Impact on Local Housing Markets (July 8, 2010). Available at SSRN: https://ssrn.com/abstract=1636570 or http://dx.doi.org/10.2139/ssrn.1636570

Charles Courtemanche (Contact Author)

University of North Carolina (UNC) at Greensboro - Department of Economics ( email )

Greensboro, NC 27402-6165
United States

Kenneth Snowden

University of North Carolina (UNC) at Greensboro - Bryan School of Business & Economics ( email )

401 Bryan Building
Greensboro, NC 27402-6179
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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