The Public Purpose of the Federal Housing Administration

Posted by on January 28, 2013

A new report by the UNC Center for Community Capital, Sustaining and Expanding the Market:The Public Purpose of the Federal Housing Administration, puts the Federal Housing Agency’s financial outlook in perspective and cautions against knee-jerk policy reactions that could undermine recovery of both the agency and the nation’s fragile housing market.

FHA has operated successfully for 80 years and plays a vital role in filling gaps in America’s housing market left by the private market, says report co-author and center director Roberto G. Quercia. Great damage can be done by fixing something that’s not broken or making policy decisions that fail to consider the facts of FHA’s financial condition in the broader context of its public purpose and value.

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