Understanding the Home Owners' Loan Act: A Comprehensive Overview

Definition & Meaning

The Home Owners' Loan Act (HOLA) is a federal law enacted in the United States in 1933. Its primary purpose was to provide financial relief to homeowners struggling with mortgage debt during the Great Depression. HOLA aimed to refinance home mortgages and support the creation of a system for chartering and regulating federal savings associations. This legislation facilitated affordable mortgage lending, making it easier for people to save for and purchase homes. HOLA also made amendments to the Federal Home Loan Bank Act to enhance its effectiveness.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A homeowner facing financial difficulties due to job loss may seek assistance under HOLA to refinance their mortgage, making payments more manageable.

Example 2: A federal savings association may use HOLA provisions to offer lower interest rates on loans to encourage home purchases in economically distressed areas. (hypothetical example)

Comparison with related terms

Term Definition Difference
Federal Home Loan Bank Act A law that created a system of federal home loan banks to support mortgage lending. HOLA amends this act to enhance mortgage refinancing options.
Mortgage Relief Programs Various programs aimed at assisting homeowners with mortgage payments. HOLA specifically provides a legal framework for refinancing mortgages through federal savings associations.

What to do if this term applies to you

If you are struggling with mortgage payments, consider exploring refinancing options under the Home Owners' Loan Act. You may want to consult with a financial advisor or a legal professional to understand your rights and options. Additionally, you can find ready-to-use legal forms on US Legal Forms to help you navigate the refinancing process.

Quick facts

  • Enacted: 1933
  • Amendments: Substantially amended in 1989
  • Jurisdiction: Federal
  • Key Focus: Mortgage refinancing and affordable lending

Key takeaways

Frequently asked questions

The purpose of HOLA is to provide financial relief to homeowners struggling with mortgage debt and to facilitate affordable mortgage lending.