The Federal Housing Administration

The Federal Housing Administration, or FHA, was created with the enactment of the National Housing Act of 1934 during President F. D. Roosevelt’s first term. The organization is designed to improve the housing standards and conditions of all Americans; to provide an adequate home financing system through the insurance of mortgage loans; and to stabilize the mortgage market.

At the time the FHA was created, the mortgage market had collapsed as part of the Great Depression. Stabilizing the mortgage market was an important part of FDR’s economic recovery process as it would allow the banks to continue to loan money which, in turn, would allow people to continue to buy things.

In 1965, the Federal Housing Administration was folded into the ranks of the Department of Housing and Urban Development, or HUD. In the roughly 75 years since its inception, the FHA has insured more than 34 million home mortgages and more than 47 thousand multifamily home project mortgages. The FHA is currently providing the mortgage insurance necessary for home mortgages on 4.8 million single family homes and more than 13,000 multifamily projects.

One of the interesting things about the FHA is that it is completely budget neutral. It is the only government agency that is completely self-funded. This means that it does not rely on the budget that Congress grants it but rather on its own income. This makes the FHA a program that is free for taxpayers.

Contact a Boston Bankruptcy Lawyer

If you have a mortgage insured through a private mortgage insurance company and would like to learn more about the FHA and their mortgage insurance, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346.