MIT Expands Financing Scope

The Housing and Urban Development Act of 1968 provides a major boost to the activities of the AFL-CIO's Mortgage Investment Trust due to the increased government commitment to providing housing for low- and moderate-income families. The MIT expands its investments to include construction financing in addition to purchasing and financing mortgages.

AFL-CIO Forms Urban Affairs Department

The Mortgage Investment Trust is expanded and placed under the AFL-CIO's new Department of Urban Affairs, which is charged with coordinating AFL-CIO policy on housing, poverty, manpower training, and mass transit. The new department will work to influence the public debate on America's cities.

King Assassinated in Memphis

Memphis Sanitation WorkersMartin Luther King, Jr., is assassinated while visiting Memphis, Tennessee, to support striking sanitation workers represented by AFSCME Local 1733. The day before he was killed, Dr. King had delivered his memorable “I've been to the mountaintop" speech at Mason Temple in Memphis.

Housing Discrimination Prohibited

Housing DiscriminationThe Fair Housing Act (Title VIII of the Civil Rights Act of 1968) outlaws most housing discrimination and gives HUD responsibility for fair housing programs. The legislation is passed shortly after the assassination of Martin Luther King, Jr. The law will help open America's suburbs to members of minority groups.

Creation of Ginnie Mae

Ginnie MaeFinancing for moderate-income housing is expanded with the creation of the Government National Mortgage Association, commonly known as Ginnie Mae, by the Housing and Urban Development Act of 1968. Ginnie Mae puts the full faith and credit guaranty of the U.S. government behind mortgage-backed securities in order to broaden the demand for these securities and thus lower the rates on the underlying mortgage loans for borrowers.

Fannie Mae Privatized

Founded in 1938 during the Great Depression, the Federal National Mortgage Association, commonly known as Fannie Mae, is privatized to expand the secondary housing finance market and to facilitate and expand the flow of private capital to the housing mortgage market. Fannie Mae purchases government mortgages insured by the Federal Housing Administration or guaranteed by the Veterans Administration.

Private Sector Investment in Affordable Housing

Lyndon JohnsonPresident Lyndon Johnson's Commission on Urban Housing releases its report, also known as the Kaiser Report, on the nation's affordable housing needs. The report emphasizes the need for greater private sector involvement in providing affordable housing. Rental vouchers are proposed as a means of providing low-income housing in the private market.