Document Type

Article

Publication Date

4-2018

Keywords

United States. Federal Housing Administration, Mortgage insurance

Disciplines

Banking and Finance Law | Insurance Law

Abstract

The Federal Housing Administration has been a versatile tool of government since its creation during the Great Depression. It was created in large part to inject liquidity into a moribund mortgage market. It has since been repositioned to achieve a variety of additional social goals, some of which have not been realized. The FHA’s failed programs, coupled with the recent financial woes of the FHA that resulted in a government bailout, have fueled criticism of the institution. The FHA has been more successful, however, in achieving its broader goals than is generally recognized. Nonetheless, its mission still needs clarification and its operations likewise need rationalization, if it is to assist the low- and moderate-income borrowers it claims to serve, not just to get a mortgage but also to sustain it over the long term.

Comments

This article predates Prof. Reiss's affiliation with Cornell Law School.

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