Financing American Housing Construction in the Aftermath of War Case Solution

At the beginning of the First World War, the United States faces a severe housing shortage. Officials feared that the spread of the disease – and even communism – in overcrowded urban centers of the nation in which the vacancy rate held near zero and often familied “doubling” in individual units. Hoping to create a burst of new construction, New York Senator William Calder has called for the creation of regional banks eleven federal building loan that serve as a new source of funds for mortgage lenders. The proposal was controversial, however. Opponents did not like the fact that federal loan banks construction have the power to issue bonds, mortgage-backed tax free, and many have argued that the private market could solve the housing shortage in their own. Supporters of the bill, meanwhile, saw a need to avoid a potentially disastrous and protracted housing shortage, citing the mortgage bond markets long success in France and Germany as proof that his plan could succeed. Federal lawmakers have evaluated the arguments of both sides and make a decision.
by
David A. Moss,
Cole Bolton
Source: Harvard Business School
30 pages.
Date Posted: January 23, 2008. Prod #: 708032-PDF-ENG
U.S. funding for housing after the war solution

Financing American Housing Construction in the Aftermath of War Case Solution
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