Following the Great Depression, President F.D. Roosevelt sought to alleviate the crippling poverty and homelessness gripping the nation. He instituted federal programs that guaranteed low-cost mortgage loans for new homeowners. For many whites, this legislation led to financial security and a middle-class lifestyle. In the most optimistic view possible, this legislation completely overlooked the role of financial institutions, and the federal government and their agents played in perpetuation Jim Crow policies and deepening poverty and segregation in non-white communities. The Federal Housing Administration Act (1934), Home Owners Loan Corporation (1933), and the Veteran's Home Loan Program (1944) all actively participated in discriminatory practices using legal, codified language to perpetuate these aggressive, exclusionary practices. One document that establishes a set of rules or codes for lending discrimination, is the Underwriting Manual. (See link below)
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See sections 228, 229, 233, 284 and 289
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