 | This article includes a list of general references, but it lacks sufficient corresponding inline citations. (February 2015) |
 The former federal headquarters of the Home Owners' Loan Corporation[1] | |
| Company type | Government-sponsored corporation |
|---|---|
| Industry | Financial services |
| Founded | June 13, 1933 |
| Defunct | February 4, 1954 |
| Headquarters | Washington, D.C. |
| Services | Credit services |
Number of employees | 20,000 (1935) and declined to less than 500 (1950) |
The Home Owners' Loan Corporation (HOLC) was a government-sponsored corporation created as part of the New Deal. The corporation was established in 1933 by the Home Owners' Loan Corporation Act under the leadership of President Franklin D. Roosevelt.[2] Its purpose was to refinance home mortgages currently in default to prevent foreclosure, as well as to expand home buying opportunities.
The HOLC created a housing appraisal system of color-coded maps that categorized the riskiness of lending to households in different neighborhoods. While the maps relied on various housing and economic measures, they also used demographic information (such as the racial, ethnic, and immigrant composition of neighborhoods) to categorize creditworthiness.[3] Since Kenneth T. Jackson's work in the 1980s, a number of studies have found that HOLC was a key promoter of redlining and a driver of racial residential segregation and racial wealth inequality in the United States.[4][5][3]
- ^ "Renovation of the Home Owners Loan Corporation (HOLC) Building". John C. Grimberg Company. Archived from the original on January 24, 2013. Retrieved December 23, 2010.
- ^ First Annual Report of the Federal Home Loan Bank Board
- ^ a b Aaronson, Daniel; Hartley, Daniel; Mazumder, Bhashkar; Stinson, Martha (2022). "The Long-Run Effects of the 1930s Redlining Maps on Children". Journal of Economic Literature. doi:10.1257/jel. ISSN 0022-0515.
- ^ Faber, Jacob W. (2020-08-21). "We Built This: Consequences of New Deal Era Intervention in America's Racial Geography". American Sociological Review. 85 (5): 739–775. doi:10.1177/0003122420948464. ISSN 0003-1224.
- ^ Aaronson, Daniel; Hartley, Daniel; Mazumder, Bhashkar (2021). "The Effects of the 1930s HOLC "Redlining" Maps". American Economic Journal: Economic Policy. 13 (4): 355–392. doi:10.1257/pol.20190414. hdl:10419/200568. ISSN 1945-7731. S2CID 204505153.