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Essay On Faha Mortgage Underwriting Standards

2052 Words9 Pages

FHA Mortgage-Underwriting Standards
Sustainability: Why This Way | Professor Aleksandra Jaeschke
Sean Beakley, M.Arch
March 3, 2023

The Federal Housing Administration (FHA) has been a cornerstone of the United States housing market since its inception in 1934. This essay explores its history, evolution, and impact on the US housing market, analyzing its effectiveness and relevance today. It delves into the broader ecological consequences and speculates on improvements designed to serve borrowers and the housing market.
The FHA was established during the Great Depression as part of President Franklin D. Roosevelt's New Deal program, aiming to stimulate the housing market by providing affordable credit to homebuyers (Newman & Wyly, …show more content…

However, their impact has been mixed, with positive and negative consequences for the housing market, social equity, and the environment. As the United States faces ongoing housing affordability, access, and sustainability challenges, critically assessing these standards' effectiveness and relevance is essential. This essay has proposed several recommendations for improving FHA mortgage-underwriting standards, including targeted measures to support low-income and first-time homebuyers, promoting sustainable housing development, fostering mixed-use and affordable housing, enhancing transparency and accountability, addressing historical discrimination, collaborating with stakeholders, and continuously monitoring and evaluating policy impacts. Ultimately, the FHA's mortgage-underwriting standards should be considered within the broader context of housing policy, recognizing the interconnectedness of mortgage lending, land-use planning, fiscal policies, and social welfare programs. By adopting a comprehensive and integrated approach, the United States can develop more effective and equitable strategies to address its housing market's multifaceted challenges, ensuring that homeownership remains an attainable and sustainable aspiration for future generations.
References
Apgar, W. C., & Duda, M. (2005). The twenty-first-century mortgage market: A balance of risk and responsibility. Housing Policy Debate, 16(3), 399-436.
Avery, R. B., Brevoort, K. P., & Canner, G. B. (2012). The mortgage market in 2011: Highlights from the Data Reported under the Home Mortgage Disclosure Act. Federal Reserve Bulletin, 98(6),

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