Mortgage Banking: FHA Retools for the Long Term

As the Federal Housing Administration (FHA) nears the end of its 2010 fiscal year on Sept. 30, 2010, FHA insurance in force is set to break the $1 trillion thresholds. For perspective, FHA's insurance in force at fiscal year-end 2005 was $359.27 billion. By 2006, FHA market share had fallen below 3 percent.

Several years ago, as the industry debated FHA's future, no one could have foreseen the prospects of FHA insuring $1 trillion in mortgages. But true to its legislative origins, FHA has met its counter-cyclical challenge and is providing much-needed market stability.

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