holc

The Home Owners' Loan Corporation (HOLC) was a United States federal agency created in 1933 under the Emergency Home Owners' Loan Act as part of the New Deal. Its purpose was to refinance home mortgages to prevent foreclosures during the Great Depression. The HOLC purchased mortgages from private lenders that were in default or at high risk of default and issued new, long-term, amortized loans at lower interest rates and with extended maturities. By restructuring payments and extending terms, HOLC aimed to stabilize homeownership and the housing market.

In addition to its loan program, HOLC produced nationwide Residential Security Maps for many cities. These maps graded neighborhoods using color codes—A (Best/Green), B (Still Desirable/Blue), C (Definitely Declining/Yellow), and D (Hazardous/Red)—to reflect relative mortgage investment risk. The maps were used by lenders in underwriting decisions and have been linked to the practice of redlining, wherein credit access was restricted in certain neighborhoods, often based on racial and ethnic composition. The maps and their consequences have become a focal point in studies of urban policy, segregation, and wealth inequality.

The HOLC's mortgage refinancing program operated through much of the 1930s and into the 1940s, and its formal operations were largely ended by the early 1950s as responsibilities were transferred to other housing programs and agencies. The agency is remembered as a major federal intervention in housing during the New Deal era and for its enduring impact on urban development and lending practices.