The Public Purpose of FHA

Posted: 11 Aug 2016

See all articles by Roberto Quercia

Roberto Quercia

University of North Carolina (UNC) at Chapel Hill - Department of City and Regional Planning

Kevin A. Park

U.S. Department of Housing and Urban Development - Office of Policy Development and Research

Date Written: 2013

Abstract

Recent reviews of the Federal Housing Administration’s Mutual Mortgage Insurance (MMI) Fund find that the losses on its portfolio are projected to exceed the revenue from its existing insurance policies and its current capital resources. This article places the MMI Fund’s “negative economic value” and recent draw on the U.S. Treasury in context and argues that the justification for federal mortgage insurance is the public purpose it serves by filling gaps the private sector leaves, thereby contributing to a healthy and stable housing market.

Keywords: Federal Housing Administration, mortgage, insurance, Great Recession

JEL Classification: G21, G22, G28, R30

Suggested Citation

Quercia, Roberto G. and Park, Kevin Alan, The Public Purpose of FHA (2013). Cityscape, Vol. 15, No. 3, 2013. Available at SSRN: https://ssrn.com/abstract=2820573

Roberto G. Quercia

University of North Carolina (UNC) at Chapel Hill - Department of City and Regional Planning ( email )

New East Building
Chapel Hill, NC 27599-3140
United States
919-962-4766 (Phone)
Not available (Fax)

Kevin Alan Park (Contact Author)

U.S. Department of Housing and Urban Development - Office of Policy Development and Research ( email )

451 Seventh Street SW
Washington, DC 20230
United States

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