What is the Home Owners’ Loan Act?

The Home Owners’ Loan Act of 1933 was a federal law passed in the United States during the Great Depression. This act created the Federal Home Loan Bank Board and allowed it to regulate the terms of home mortgages, refinance loans and loans for home repairs. Under this act, the Federal Home Loan Bank Board was tasked with encouraging home ownership and providing access to housing loan funds. The act created the federal savings and loan system and its purpose was to assist people with home ownership and creating a secondary mortgage market to provide liquidity to the banking system. Under this act, the Federal Home Loan Bank Board was able to create and regulate the Home Owners’ Loan Corporation which was a government-sponsored corporation that was created to buy and re-write mortgages to help people who were facing foreclosure. This act also allowed for the creation of Home Owners’ Loan Act bonds which helped to fund the Home Owners’ Loan Corporation and were sold to the public. In North Carolina, the Home Owners’ Loan Act was a very important piece of legislation as it helped to keep people in their homes by providing assistance with refinancing options and home loans. It also helped to protect homeowners from predatory lenders by establishing guidelines for home loans. This act was a crucial piece of legislation that helped to protect the rights of homeowners during a challenging and uncertain time.

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What is the Home Owners’ Loan Act?

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