Finance
The Federal Housing Administration (FHA) does which of the following?
AIssues mortgages directly to homebuyers
BInsures approved lenders against default on qualifying loans✓ Correct
CSets the interest rate for all FHA loans
DManages Fannie Mae and Freddie Mac
Explanation
The FHA does not lend money directly; it insures lenders against loss if a borrower defaults on an FHA-approved loan. This insurance allows lenders to offer loans with lower down payments and more flexible credit requirements.
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