Home Owners' Loan Corporation

Home Owners' Loan Corporation
	The former federal headquarters of the Home Owners' Loan Corporation
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.

[Grimberg-1] "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.

[2] First Annual Report of the Federal Home Loan Bank Board

[:1-3] 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.

[:0-4] 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.

[5] 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.

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