The Federal Home Loan Bank system to stop home foreclosures and finance new homes

In the field of national legislation we pledge that the measures creating a home loan discount system will be pressed in Congress until adopted.

It was in accordance with these principles that we are now in process of establishing a new system of home loan banks so that through added strength and through cooperation between the building and loan associations, the savings banks and other institutes we may relax the pressures on forfeiture of homes and procure the release of new resources for the construction of more homes and the employment of more men.

The home loan banks not only serve an emergency but they are also continuous, permanent institutions which will provide the machinery through which it will be more easy in the early years of their married life for men and women through their combined effort to acquire homes in which to rear their children and to retain that home for comfort and security in their old age.

Those banks will be opened and operating at the end of this month. The system is not as perfect as I could wish, but it has already had one immensely beneficial effect, and there will be others. The anticipation of its aid has largely stopped the foreclosing on homes, and with its operation it should give every man who wants to make a fight to hold onto his home the opportunity to do so.

The system was established before the election and later supplemented by the HOLC, FHA and Fannie Mae.

A reorganized Reconstruction Finance Corporation (RFC) spun off subsidiaries such as the Federal National Mortgage Association ("Fannie Mae") that, along with the Federal Housing Administration (FHA) made it possible for millions of Americans to buy or renovate homes.