March 19, 2018

Insuring Sustainable Homeownership

David Reiss

The Federal Housing Administration (FHA) has suffered from many of the same unrealistic underwriting assumptions that have done in so many lenders during the 2000s. It too was harmed by a housing market as bad as any seen since the Great Depression. As a result, the federal government announced in 2013 that the FHA would require the first bailout in its history. Margaret Chadbourn, U.S. Federal Housing Administration to Tap $1.7 Bln in Taxpayer Funds, Reuters, Sept. 27, 2013, http://reuters.com/article/usa-housingbailout-idUSW1N0G702P20130927. At the same time that it faced these financial challenges, the FHA came under attack for poor execution of some of its policies attempting to expand homeownership opportunities.

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