HOLC Meaning and
Definition
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HOLC, or the Home Owners' Loan Corporation, was a federal agency established in the United States during the 1930s as part of President Franklin D. Roosevelt's New Deal program. Its objective was to assist homeowners who were struggling to make mortgage payments or facing foreclosure due to the Great Depression.
The HOLC aimed to stabilize the housing market by providing accessible and affordable refinancing options to distressed homeowners. It achieved this by purchasing and refinancing existing mortgages at lower interest rates, thus reducing the monthly mortgage payments of eligible homeowners. The loans were then backed by the HOLC, providing a sense of security to the lending institutions.
The agency also created color-coded maps, known as HOLC maps, that assessed the risk associated with lending in various neighborhoods. These maps classified areas into four categories: green (best), blue, yellow, and red (worst). Tragically, redlined areas were predominantly populated by minority communities and were considered high-risk, making it difficult for residents to secure loans or obtain insurance. This discriminatory practice reinforced segregation and hindered economic opportunities for marginalized groups.
In summary, the HOLC was a federal agency created during the Great Depression to provide relief to struggling homeowners through mortgage refinancing. While it aimed to stabilize the housing market, the unintentional consequence of redlining on minority communities perpetuated discrimination and inequality for many years to come.
Common Misspellings for HOLC
- holvc
- holcv
- holfc
- hholc
- HOhC
- hoelc
- h olc
- ho lc
- hol c
- hijlc
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