HUD During The Great Depression: A Case Study

Federal spending should be aimed at getting families with young children out of these tin shack and back into real homes. In 1931 president Hoover increased federal spending on public work, in action he lessens the unemployment to $700 million dollars. Hoover was hostile to the passage of believing that work relief programs might be demoralizing as a dole. In 1933 the RFC loans were the beginning of a banking crisis, starting the beginning of poverty for families.

Within each service area there is a host of many options available. Specifically, under the Public and Indian Housing is the Housing Choice Voucher Program, commonly referred to as Section 8 Housing. Section 8 is the federal government's major program for access to very low-income families, the elderly, and the disabled to afford suitable, safe, and sanitary housing in the private market. Housing choice vouchers are administered by the local public housing agencies (PHAs). The

There are numerous history specialists who see the New Deal approaches of President Franklin D. Roosevelt as the start of the social welfare arrangement of the Federal Government. Amid the Great Depression, there were numerous men who had no employments; thus, their families endured hardship and yearning. The New Deal projects were a progression of local projects, for example, the Federal Emergency Relief

During The Great Depression, the New Deal Instituted many programs where some had many accomplishments some many failures and some had both accomplishments and failures. The programs that had the greatest impact of the Great Depression were the creation of the securities and exchange commission, The works Progress Administration, the Fireside Chats, and the Wagner Act. The programs that had some accomplishments and failures were the civilian conservation corps, the Tennessee Valley Authority and the institution of the Social Security. Lastly, the program that had nothing but failures was the Court Packing Plan.

The Housing and Community Development Act of 1974 authorized the Section 8 program with 2 components, Section 8 project-based assistance for existing, newly constructed or rehabilitated housing and the Section 8 existing housing program, a newly created housing assistance program to be administered by PHAs provided tenant-based subsidies. Rental voucher program was first authorized as a demonstration program by Congress in 1984. The program, then, was formally authorized as a program in the Housing and Community Development Act of 1987. Conversion to the HCV program from the rental voucher and rental certificate programs started on October 1st in 1999. All certificate tenancies and rental vouchers became subject to the HCV program requirements (Hartung and Henig, 1997).

The Public Policy Institute states that Section 8 project-based rental assistance contracts involving HUD and for-profit owners contracting private multifamily housing, which is made available by HUD to low-income households who qualify for housing assistance. The subsidy is such that pays the difference "between 30 percent of the household's income and the contract rent; the subsidy is paid by HUD to the landlord." (AARP Public Policy Institute, 2002) In addition, HUD has Dispersal programs for renters of Section 8 housing due to the desire of the public to avoid to concentration of poverty-level residents in urban areas. This is because there is a general consensus that Section 8 subsidized housing tends to drive down the market prices of property in the same area. There are various challenges that are faced by the Section 8 subsidized housing program as it assists low-income households obtain appropriate housing through the provision of rental assistance.

The New Deal was a set of federal programs with the principle of social-welfare liberalism. President Roosevelt was deeply compromised to help the most vulnerable in the ongoing crisis. In second inaugural address he outlines the progress of the New Deal “We have always known that heedless self-interest was bed morals…. Out of the collapse of a prosperity whose builders boasted their practicality has come to the conviction that in the long run economy morality pays.” At some extend President Roosevelt proudly tell the Nation that he was heading to the right direction to progress. Some of the New Deal successful programs that brought relief and dignify living to many Americans were Agricultural Adjustment Act (AAA) a direct governmental regulation of farm economy to resolve the overproduction problem. In the unemployment relief, the Federal Emergency Relief Administration (FERA) that provided federal funds for state relief programs. Public Works Administration (PWA) a construction program that lead to Civil Works Administration (CWA) that provide work for more than 4 million Americans repairing, building, and constructing America's infrastructure. The Civilian Conservation Corps (CCC) that mobilized young men to do reforestation and conservation work helping their family’s income and the country reservation. In 1935 in housing issues Works Progress Administration (WPA) Home Owners Loan Corporation (HOLC) that help many Americans keep their

Many veterans returned to young families anticipating the opportunity to buy a home. The lack of home production during the Great Depression and war created a severe

While many of these programs were wasteful, they succeeded to some extent in keeping people out of foreclosure, out of starvation, and propped up morale. I think they could have been more successful had the Administration not shot itself in the foot with a perverse economic tightening in 1937.

Was the U.S. federal government’s 1932 intervention in the market for home ownership desirable? How did the creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 expand homeownership and shape lending practices at banks and other mortgage lending firms?

The new deal provided helping programs such as the Social securities act, WPA, and the federal Emergency Relief Act to lower unemployment and to help those who couldn't

They write, “In response to the massive unemployment of the 1930’s, Roosevelt’s New Deal in 1933 introduced the first federal relief programs targeted at the poor and unemployed… he anticipated that the work relief jobs would boost consumer spending and thus increase demand for labor, which would then raise private employment and earnings.” (Neuman, Fishback, Kanton, pg 4) This quotes illustrates that programs such as these relief jobs, would not only be able to get the people back to work, but also get the economy up and running again.

In the Imaging System locate the HUD1 Settlement Statement that was signed at the closing of the loan and, if needed, the Truth in Lending. Both documents are in origination folder. The HUD1 Statement will show if taxes and insurance were included in the closing of the loan on lines 1001-1005. If there are no amounts listed, the loan was not required to be escrowed upon origination. If they were included, it does not mean they were required, the truth in lending may have a clause that states the taxes and insurance were required.

Attached is your approved HUD. The amount needed for closing is $67,246.13. The funds need to be in a form of a cashier’s check and made out to Alamo Title Company. Your appointment has been schedule for 3pm. Their address is 14140 Southwest Freeway, Suite 160 Sugar Land, TX 77478. Please give me a call to discuss the HUD.

Loans at the time were nonamortizing and required a balloon payment at the expiration of the term. Mortgages were available to a limited client base, with home ownership representing about 40 percent of U.S. households. Many of these short-term mortgages went into default during the Great Depression as homeowners became unable to make regular payments or find new financing to pay off balloon payments that became due. The United States government intervened in the housing market in 1932 with the creation of the Federal Home Loan Bank (FHLB). The FHLB provided short-term lending to financial institutions (primarily Savings and Loans) to create additional funds for home mortgages. Congress passed the National Housing Act of 1934 to further promote homeownership by providing a system of insured loans that protected lenders against default by borrowers. The mortgage insurance program established by the National Housing Act and administered by the Federal Housing Administration (FHA) reimbursed lenders for any loss associated with a foreclosure up to 80 percent of the appraised value of the home. With the risk associated with default on FHA-backed mortgage loans reduced, lenders extended mortgage loan terms to as long as 20 years and LTVs of 80 percent. In 1938, Federal National Mortgage Association (FNMA) was established