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Federal Housing Administration (FHA)

Federally sponsored agency chartered in 1934 whose stock is currently owned by savings institutions across the United States. The agency buys residential mortgages that meet certain requirements, sells these mortgages in packages, and insures the lenders against loss.

Federal Housing Administration

An agency of the United States federal government responsible for encouraging homeownership. It does this primarily by providing insurance to private mortgage lenders. It finances its activities by buying mortgages from the lender, repackaging them as mortgage-backed securities, and re-selling them. It also makes mortgage loans directly. It was established in 1934.


Federal Housing Administration (FHA).

The Federal Housing Administration (FHA) was established by the federal government in 1937 to make home ownership possible for more people and to administer the home loan insurance program. It was consolidated into the Department of Housing and Urban Development (HUD) in 1965.

Among its other responsibilities, the FHA sets credit standards and loan limits, monitors loan quality and availability, and insures lenders against mortgage losses. That insurance, for which borrowers pay a mortgage insurance premium, encourages qualifying lenders to make FHA loans.


See Federal Housing Authority.

References in periodicals archive ?
After three years of struggling to understand the DOJ's position and methodology that would warrant the country's largest and highest quality FHA lender to make untrue admissions and pay an inexplicable penalty or face public legal action, it is time to ask the court to intervene," said Quicken Loans CEO Bill Emerson.
To answer this question, we check if the composition of after-crisis FHA originations resembles the pre-crisis subprime market in terms of borrowers' credit scores.
The extent of fluoride doping (x) into the calcined (at 900[degrees]C) FHA was calculated using the mass % data of Ca and F as obtained by EDS (Energy dispersive spectroscopy).
The FHA, a unit of the Department of Housing and Urban Development, provides liquidity to the housing market by insuring lenders against losses on loans.
Although FHA requirements were considered quite radical and risky at the time, the agency's initial loan requirements would be viewed as rather stringent under today's standards.
In addition, FHA underwriting rules allow lenders to take other payment history, such as rent and utilities, into account when underwriting loans FHA will insure as well as other factors that first-time or lower income borrowers may find helpful.
As Congress takes steps to reform the FHA, some mortgage professionals -- who feel their industry has been sullied enough by the subprime crisis -- are sounding the alarm.
Although the President urged Congress to quickly pass FHA reform, the Administration issued a veto threat on the House-passed bill because it goes much farther than the President's request.
We found that the largest government insurer, the FHA, was the most involved with lower-income and minority homebuyers, as measured by both portfolio share (the proportion of an institution's own mortgage portfolio extended to these groups) and market share (the proportion of all mortgages extended to these groups for which an institution bears the credit risk).
Federal Housing Administration (FHA), evident on large banks' balance sheets in the second quarter, may point to more trouble ahead for the FHA as the agency seeks to shore up its loss reserves.
The new policy allows e-Signatures on origination, servicing, and loss mitigation documents, as well as FHA insurance claims, REO sales contracts and related addenda.
Stevens acknowledged that the most recent Actuarial Review for the FHA triggered concerns that the FHA might need a draw from the U.