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The Federal Housing Administration (FHA) administers single-family and multifamily mortgage insurance programs within the U.S. Department of Housing and Urban Development (HUD). It provides mortgage insurance for the purchase of single- and multifamily housing targeted to low and moderate-income families. FHA insures lenders against losses in case of mortgage default, enabling private industry to construct and rehabilitate multifamily housing, single-family homes, and assisted living facilities for low and moderate-income families and individuals. FHA plays an indispensable role in extending home financing to low-income homebuyers and other traditionally under-served populations.
 
HFAs and FHA Insurance
State HFAs use FHA single-family mortgage insurance in combination with Mortgage Revenue Bonds (MRBs) and other funding sources to finance modestly priced homes for first-time homebuyers. HFAs will often provide down payment assistance in connection with FHA-insured loans to help responsible homeowners who cannot afford a large down payment.
 
FHA Reform
During the recent economic crisis, FHA's lending increased substantially as it played a countercyclical role in helping to boost the weakened housing market. Partly as a result of this increased role, the FHA's single-family programs have recently experienced financial difficulties, causing some to push for strong returns to FHA's homeownership lending. 
NCSHA supports efforts to help FHA shore up its fiscal balance, but cautions policymakers to be careful not to overreach and price responsible low-and moderate income borrowers FHA traditionally serves out of the housing market. 
 
Helpful link: HUD's FHA Web Page

NCSHA Blog Posts

  • January 24, 2017
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    The Senate Banking Committee earlier today voted unanimously to favorably report Dr. Ben Carson’s nomination to serve as Secretary for Housing and Urban Development. Carson’s nomination will now be referred to the full Senate for consideration. It is not yet known when the Senate will take up his nomination.

  • January 23, 2017
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    In one of the first policy actions taken by President Trump’s new Administration after he was sworn in, the Federal Housing Administration (FHA) on Friday published a Mortgagee Letter (ML-2017-07) that cancels a scheduled reduction in the annual mortgage insurance premium FHA charges for most single-family mortgages it insures. The reduction, which HUD announced January 9, was set to take effect on January 27 and would have reduced most premiums by .25 percent (see previous blog post for more information).

    News

    • June 7, 2012
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      The National Council of State Housing Agencies (NCSHA) urged Congress today to strengthen FHA’s affordable multifamily lending capacity by enhancing its already successful partnership with state Housing Finance Agencies (HFA). NCSHA advocated for authorizing Ginnie Mae to securitize Federal Housing Administration (FHA)-insured multifamily loans under the FHA-HFA Risk-Sharing program to help address the nation’s growing need for rental housing. These remarks were made during testimony before the House Financial Services Subcommittee on Insurance, Housing and Community Opportunity hearing on FHA multifamily mortgage insurance programs.

    • June 7, 2012
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      The National Council of State Housing Agencies (NCSHA) urged Congress today to strengthen FHA’s affordable multifamily lending capacity by enhancing its already successful partnership with state Housing Finance Agencies (HFA). NCSHA advocated for authorizing Ginnie Mae to securitize Federal Housing Administration (FHA)-insured multifamily loans under the FHA-HFA Risk-Sharing program to help address the nation’s growing need for rental housing. These remarks were made during testimony before the House Financial Services Subcommittee on Insurance, Housing and Community Opportunity hearing on FHA multifamily mortgage insurance programs.

      FHA Insurance - Resources

      • March 20, 2017

        Key Congressional Committee Rosters for NCSHA in the 115th Congress.

      • December 12, 2016
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        The National Council of State Housing Agencies (NCSHA) is a national nonprofit, nonpartisan organization created by the nation’s state Housing Finance Agencies (HFAs) to advance through advocacy and education their efforts to provide affordable housing to those who need it. NCSHA’s priorities, adopted annually by its Board of Directors after consultation with all state HFAs, set the agenda for NCSHA’s advocacy before Congress, the Administration, and the federal agencies concerned with housing, including HUD, USDA, and the Treasury, as well as its business activities.