The collapse of the mortgage market in 2007-2008, raises fundamental questions about the U.S. system of mortgage lending, insurance and loan guarantees for housing. The paper analyzes the federal housing programs of insurance and loan guarantees in the broader context of housing policy. In particular he considers the activity of Governors of the Federal Housing Administration (FHA), Veterans Administration (VA), and the Government Sponsored Enterprises (GSE).
It reviews and quantify public resources devoted to these programs, the market value of the federal insurance and loan guarantees and quantitative crucial loan guarantees in the federal system housing. Next, the article discusses the activities of FHA in more detail, with particular attention to the historical development of its role as a provider and guarantor of the loan. He believes that the support of these activities in the light of competition in the mortgage market, the recent failures in the market of housing loans, as well as the provisions of the Housing and Economic Recovery in 2008. In addition, to increase FHA mortgage programs could provide a benchmark for comparison and evaluation of predatory lending in the primary housing and mortgage markets. "Hide
by Dwight M. Jaffee, Michael Quigley Source: California Management Review 28 pages. Publication Date: November 1, 2008. Prod. #: CMR414-PDF-ENG
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