Finance
The Federal Housing Administration (FHA) was created primarily to:
ADirectly make mortgage loans to low-income borrowers
BInsure mortgage loans made by private lenders, encouraging lending to borrowers who might not qualify for conventional loans✓ Correct
CRegulate the secondary mortgage market
DBuild affordable housing for low-income Americans
Explanation
The FHA (created in 1934) insures approved lenders against losses from borrower default on FHA loans, enabling lenders to offer mortgage loans with lower down payments and more flexible qualifying standards.
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