Finance

The Federal Housing Administration (FHA) primarily:

ALends money directly to homebuyers
BInsures approved lenders against loss on qualifying mortgages✓ Correct
CRegulates all national banks and mortgage lenders
DSets maximum interest rates on all home loans

Explanation

The FHA does not lend money directly. Instead, it insures approved private lenders against losses on qualifying loans, allowing lenders to offer more favorable terms to borrowers who meet FHA guidelines.

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