Housing/Mortgages
The federal government has been involved in housing since the formation of a Congressional commission in 1892 to investigate slum conditions in the nation’s cities. During WWI and WWII the federal government constructed and managed housing for defense workers and military personnel. Since the National Housing Act was signed into law by FDR in 1934 the federal government has helped middle and working class families acquire home loans through regulation of savings and loan industry, subsidized loans and other mechanisms. These policies have transformed and dramatically expanded the opportunity for homeownership and helped to create the middle class in the U.S.
Cry Wolf Quotes
There were many reasons why many of us who ordinarily would not like regimentation of industry—and we do not like regimentation of agriculture or any of the other instrumentalities of production—saw reasons under the emergency why it should be done, as an emergency say. But none of the reasons for which that was done in that character of industry holds good for any bill that will lead to a regimentation of American citizens, to say what he shall do with his individual home.
Now what need is there for doing this sort of thing? I hold in my hand, Mr. Chairman, a section of last night’s Star, which I have cut out. Here are six reputable loaning agencies in Washington, one of them representing the Metropolitan Life, another the Prudential, another an insurance company on its own initiative, who are loaning, and they are advertising for borrowers. Why load us with the expense and with the burden of this bill?
A mortgage is just one of the things that you cannot guarantee. When the real-estate market completely goes to the bad and crashes, there is not money enough in this country or any other country to sustain mortgages at an even level. They have got to take the go-down, just the same as any other security or any other commodity.
I am not speaking officially for any organization of women but my experience with these groups covering a period of 25 years gives me a very fair idea of the reactions of the women of the Nation to any plan that even suggests regimentation or standardization of their homes. This is also the thought of president of the General Federation of Women’s Clubs who said in a public address of the 11th of this month: ‘We want no standardization of homes, we want individualism, and we sound that note of warning to the Government in our cooperation with them.’
Related Laws and Rules
Evidence
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Federal Reserve Bank of San Francisco Shuts Down Critics of the Community Reinvestment Act
The Community Reinvestment Act had nothing to do with the subprime crisis.
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Community Reinvestment Act Did Not Fuel the Subprime Crisis
The Community Reinvestment Act did not create an overabundance of risky loans.
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Inclusionary Housing: A Good Solution to Create Affordable Housing
In defense of inclusionary housing.
Backgrounders & Briefs
Good Rules: Ten Stories Of Successful Regulation
Demos looks at ten laws and rules that we take for granted.
Community Reinvestment Act Policy Brief
By Philip Ashton, UIC
The Community Reinvestment Act (CRA) has been critical to the expansion of responsible credit for low- and moderate-income borrowers since its passage in 1977.
Resources
The Center for Responsible Lending promotes and advocates legislation to defend lower income Americans from abusive or predatory lending practices.
