National Housing Act(redirected from National Housing Act of 1934)
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National Housing Act
Legislation in the United States, passed in 1934, that established the Federal Housing Administration and the Federal Savings and Loan Insurance Corporation. The FHA provides mortgages to those who otherwise may not be able to afford them. The FSLIC gave insurance to savings and loan corporations, which reduced the likelihood that savings and loans would go bankrupt and therefore made it less risky for them to make mortgage loans. Both aspects of the Act were intended to increase American homeownership. It was part of the New Deal.