Federal Home Loan Bank Act
The Federal Home Loan Bank Act, Pub.L. 72–304, 47 Stat. 725, enacted July 22, 1932, is a United States federal law passed under President Herbert Hoover in order to lower the cost of home ownership. It established the Federal Home Loan Bank Board to charter and supervise federal savings and loan institutions. It also created the Federal Home Loan Banks which lend to S&Ls in order to finance home mortgages.
The act was not effective in reaching its goals, since it could basically only loan money to people who didn't need it. In its first two years of operation, from 1932-34, 41,000 applications for direct loans were received, of which only three were approved.
The act was notably amended by Financial Institutions Reform, Recovery and Enforcement Act of 1989, which transferred regulation of thrifts to the Office of Thrift Supervision.
- Jackson, Kenneth T. (1985). Crabgrass Frontier: The Suburbanization of the United States. New York: Oxford University Press. ISBN 0-19-504983-7., p.194
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