Finance
A buyer in Oregon uses an FHA loan. Who insures the lender against losses if the buyer defaults?
AThe state of Oregon through the Oregon Housing Fund
BThe Federal Housing Administration✓ Correct
CFannie Mae
DA private mortgage insurance company
Explanation
FHA loans are insured by the Federal Housing Administration, a division of HUD. If a borrower defaults, the FHA pays the lender, which is why FHA loans can be offered to borrowers with lower down payments and credit scores — the lender's risk is reduced by the insurance.
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