The Downs and Ups of FHA Lending: The Government Mortgage Roller Coaster Ride

39 Pages Posted: 21 Oct 2013

See all articles by Marsha Courchane

Marsha Courchane

Charles River Associates (CRA)

Rajeev Darolia

Martin School of Public Policy

Peter M. Zorn

Freddie Mac

Date Written: March 20, 2013

Abstract

Throughout the last decade, mortgage markets experienced both a considerable decline and a considerable increase in the share of the market served by the FHA. Concerns have grown about the solvency of the program and about the access to credit of the borrowers served by the FHA market. These concerns are due, at least in part, to the evolving distribution of loans in the FHA portfolio and uncertainty about future patterns of lending. This paper attempts to explain FHA lending patterns over the past decade, particularly the dramatic downs and ups of FHA lending. We pay particular attention to the drivers of these changes, and the implications of these changes for FHA lending, mortgage markets, and associated public policy initiatives.

Keywords: Mortgages, FHA Lending, Subprime Mortgages

JEL Classification: D12, G21

Suggested Citation

Courchane, Marsha and Darolia, Rajeev and Zorn, Peter M., The Downs and Ups of FHA Lending: The Government Mortgage Roller Coaster Ride (March 20, 2013). Available at SSRN: https://ssrn.com/abstract=2341821 or http://dx.doi.org/10.2139/ssrn.2341821

Marsha Courchane (Contact Author)

Charles River Associates (CRA) ( email )

1201 F Street, NW
Suite 700
Washington, DC 20004
United States

Rajeev Darolia

Martin School of Public Policy ( email )

Lexington, KY 40506
United States

Peter M. Zorn

Freddie Mac ( email )

1551 Park Run Drive
MS D3F
McLean, VA 22102
United States
(571) 382-3220 (Phone)
(571) 382-5074 (Fax)

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