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FHA in the Great Recession: Rebalancing Its Role

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  • John C. Weicher

Abstract

The Federal Housing Administration's (FHA) Mutual Mortgage Insurance Fund has a negative net worth as of FY2012, partly because of the weak economic recovery and partly because its policy has been directed to supporting homeownership at the risk of incurring more defaults. Although recently announced reforms should reduce losses, higher insurance premiums and lower loan-to-value ratios will still be necessary. But FHA faced and survived similar situations before, and should be able to do so again, without draconian limitations on its authority.

Suggested Citation

  • John C. Weicher, 2014. "FHA in the Great Recession: Rebalancing Its Role," Housing Policy Debate, Taylor & Francis Journals, vol. 24(3), pages 637-643, July.
    • Handle: RePEc:taf:houspd:v:24:y:2014:i:3:p:637-643
    DOI: 10.1080/10511482.2013.812572
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    Cited by:

    1. Jan Nederveen Pieterse, 2017. "From economic stagnation to systemic fragility?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 40(2), pages 272-277, April.

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