History

What are Building and Loan Associations?

Link to this answer

CloseClose

Link to this answer

Share this credible answer with others. Simply paste this code into your blog or Web page:

<a href="http://qanda.encyclopedia.com/question/building-and-loan-associations-618463.html" >What are Building and Loan Associations?</a>
E-mail this answer Link to this answer

Prior to the New Deal reforms of the early 1930s, most home mortgages were for five years, after which time they had to be repaid in one lump-sum payment. Building and loan associations, first organized in Pennsylvania in 1831, developed in response to this situation, which effectively limited home ownership to the wealthy. Workers pooled their savings and then chose, often by lottery, who would be able to finance a home.

Answer verified with
Get more facts and information about Building and Loan Associations from Dictionary of American History at Encyclopedia.com.

Similar questions: What do Building and Loan Associations involve? What constitutes Building and Loan Associations? What makes up Building and Loan Associations? [ Hide these questions ]

Related research questions

Related research articles

LOAN ASSOCIATIONS BEGAN HOME FINANCING FROM START
Newspaper article from: The Journal Record ...state, he said. Local Building and Loan Association...10 years later. The associations were initially called building and loans because until the turn...borrowers received loans to build their own...Capitol Hill Building and Loan Association in 1926. By ...
Computerized Loan System Gives the Lowdown on Rates
Newspaper article from: The Washington Post ...point is 1 percent of the loan amount, paid upfront...the analysis for you, loan by loan, with easy-to-understand...can check out dozens of loans - fixed rate, adjustables...brokerage, banking and home building firms are scrambling...members of the National Association of Real Estate ...
Amid cuts, do SBA loans for realty still make sense? (Small Business...
Magazine article from: American Banker ...lose it on business loans." Worse, the banker...guarantees for real estate loans tend to soak up bigger...in California, where loan amounts tend to be larger...lenders defend real estate loans as helping small business...overhead costs by buying a building," said Steve Mattern...the ...
Loan Helps 'New Americans' To Become Just That.
Magazine article from: Credit Union Journal ...process that involves building relationships of trust...out its new citizenship loan program, called the New Americans Loan Program. The loan was established to help...partnering with The Cape Verde Association, South Shore Haitians...visibility, with 60 loans written totaling $30...
HOME LOANS BALLOON MOST MORTGAGES IN LAKE COUNTY
Newspaper article from: Post-Tribune (IN) ...than a prefabricated building. "Our mortgage department...aggressively selling home loans than in the past and...at least a $35,000 loan, but we aren't doing...increasing the number of loans for homes over $500...president and chief loan officer for People...Federal Savings and Loan ...
See all results at HighBeam

HighBeam gives you access to newspaper, magazine, and trade journal articles plus press releases, facts, information, and biographies from thousands of sources.