|
|
Article: Has FHA lost its way?(Federal Housing Administration)
- Article from:
- ABA Banking Journal
- Article date:
- March 1, 1998
- Author:
CopyrightCOPYRIGHT 1998 Simmons-Boardman Publishing Corporation. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Created to help those of "low and moderate" income, why, detractors ask, is it seeking to subsidize those making $80,000?
"Middle class" is an elastic term. It's being stretched by both sides in a debate over whether the Federal Housing Administration should be allowed to make loans as large as those made by Fannie Mae and Freddie Mac. This move would eliminate the presumed gradation in borrower type, from less to more wealthy, as one moves from "government" loans to "conventional" loans.
"The issue really becomes, who is FHA there to serve?" says one trade association source, who preferred not to be named. "If it's there to serve those not served by ...