Editing Home Owners' Loan Corporation (section)

==Operations==
The HOLC issued bonds and then used the bonds to purchase mortgage loans from lenders.  The loans purchased were for homeowners who were having problems making the payments on their mortgage loans "through no fault of their own".  The HOLC refinanced the loans for the borrowers.  Many lenders gained from selling the loans because the HOLC bought the loans by offering a value of bonds equal to the amount of principal owed by the borrower, unpaid interest on the loan, and taxes that the lender paid on the property.  This value of the loan was the amount of the loan that was refinanced for the borrower.  The borrower gained because they were offered a loan with a longer time frame at a lower interest rate.  It was rare to reduce the amount of principal owed. The Government gave $200 million dollars to the people and it will help the people to be able to pay off the mortgage and they won't lose their house.