Home Owners' Loan Corporation (HOLC)

The Home Owners' Loan Corporation (HOLC) was a U.S. government agency established in 1933 during the Great Depression. Its purpose was to help struggling homeowners avoid foreclosure by refinancing their mortgages on more manageable terms. HOLC provided long-term loans with lower interest rates, allowing people to keep their homes. This initiative aimed to stabilize the housing market and support economic recovery. The HOLC also created a system of neighborhood assessments, which later influenced housing policies and contributed to redlining practices, impacting community development and access to mortgage financing for certain racial groups.