In 1933, Franklin D. Roosevelt created the New Deal to get the United States up and running again. During the depression, …show more content…
For most Americans having a home is ideal. But during the Depression all that went downhill. During the depression, the stock market crashed which means the banks also went downhill as well. Once the banks went down so did homeowner ship. One of the reasons homeowner ship went down was because of the mortgage system. One of the letter to the Roosevelts says “Thank you very much for helping me to keep my house. If it wasn’t for you I know I would have lost it…I will never you and will always pray for you and your family. I went to the Home Loan and they said everything would be all right”. This letter informs the Roosevelts just how hard it was to have homeownership over their house. During the Depression families were not able to get a job, so no income was coming in, which means foreclosure. During this time seeing foreclosure signs were not that rare, and seeing people on the streets. The New Deal wanted to prevent this from happening, which is why the Home Owners Loan Act was created. The government played a huge role with this act as well. The government sponsored homeowner ship. Being sponsored by the government means the government likes the act, as well as backed by the government money. In other words, the government is 100% behind this. The government wanted to help families to keep their homes which is why the Homeowner ship is in the New