What was the Federal Housing Administration?

The Federal Housing Administration is a program under the U.S. Department of Housing and Urban Development that provides mortgage insurance on loans made by lenders that have been approved by the FHA. Mortgages that are insured by the FHA apply for both single- and multi-family homes.

The FHA was created in 1934 and, as of 2015, is the largest mortgage insurer in the world, with over 34 million properties insured. The mortgage insurance provided by the FHA protects approved lenders from any losses incurred by any mortgage loans that have been defaulted upon by landowners. In the event of default, the FHA pays any claims that are due to the lender.