Federal Housing Administration 90th Anniversary
The Federal Housing Administration (FHA) marked its 90th anniversary on June 27, 2024, celebrating nearly a century of facilitating homeownership for American families. Established under the National Housing Act of 1934 and signed by President Franklin Delano Roosevelt, the FHA has been a cornerstone in the U.S. housing finance system.
Today’s celebration at the Department of Housing and Urban Development (HUD) headquarters in Washington D.C. featured opening remarks from HUD Acting Secretary Adrianne Todman and Federal Housing Commissioner Julia Gordon. The event drew past FHA commissioners and leaders from the housing finance and advocacy communities.
Transforming Homeownership
“The Federal Housing Administration has provided a path to homeownership for millions of people, changing families’ lives for generations,” said HUD Acting Secretary Adrianne Todman. “We are ensuring that FHA remains accessible to everyone, particularly first-time homebuyers and historically underserved communities.”
Commissioner Julia Gordon emphasized the enduring value of FHA: “FHA’s 90th anniversary is an opportunity to reflect on both the successes and challenges of the program throughout its nine decades. As one of the first public-private partnerships, FHA has a rich history of supporting the nation’s housing system in all market conditions and making homeownership possible for those not adequately served by the private market.”
Largest Mortgage Insurer
FHA is the world’s largest mortgage insurer. It serves a higher percentage of first-time home buyers, low- and moderate-income households than any other mortgage channel. More than 91 million low- and moderate-income and first-time homebuyers benefitted from FHA’s affordable mortgage financing since its creation, using FHA programs to build generational wealth through homeownership.
More than seven million American households currently live in a home financed by an FHA-insured mortgage.
FHA currently insures more than 11,000 multifamily mortgages, which provide rental homes for more than 1.4 million individuals and families, and more than 3,700 residential care and hospital facilities, which support access to quality healthcare in rural and urban communities.
Key FHA Achievements
Since its inception, the FHA has become the world’s largest mortgage insurer, focusing on first-time homebuyers, low- and moderate-income households, and people of color. Over 91 million Americans benefitted from FHA’s affordable mortgage financing, and more than seven million households currently live in homes financed by FHA-insured mortgages.
Significant milestones include:
- Cost Reductions: In March 2023, FHA reduced its Single Family annual mortgage insurance premium by 35%, saving over 920,000 borrowers an average of $885 per year.
- Senior Homeowners: The Home Equity Conversion Mortgage program helped more than 164,000 senior homeowners age in place.
- Healthcare Access: FHA insured over 840 mortgages for nursing homes, assisted living facilities, and hospitals, enhancing healthcare quality across the nation.
- Affordable Housing: FHA increased the availability of affordable rental housing and supported energy efficiency and climate resilience measures through its Green and Resilient Retrofit Program (GRRP).
- Avoided foreclosure: Through its special COVID-19 forbearance and loss mitigation home retention options, including its new Payment Supplement Partial Claim, Federal Housing Administration helped two million homeowners to stay in their homes and/or otherwise avoid foreclosure through the Covid period.
- 3 million homebuyers, renters: Since 2021, FHA served more than 2.9 million homebuyers, most of whom were buying a home for the first time, while also financing the rental homes of more than half a million individuals and families.
- Manufactured home communities: Made cooperatives, non-profit entities and consortia, state and local governments, community development financing institutions, and Indian Tribes eligible for FHA-insured multifamily loans to finance acquisition of communities of manufactured homes.
Historical Highlights
- 1934: The National Housing Act created FHA.
- 1940: Began paying all expenses from generated income.
- 1947: Manufactured housing insurance program started.
- 1950: The Housing Act of 1950 amended the National Housing Act to encourage the production of housing for middle-income families and established Section 213 for mortgage insurance on cooperative housing projects.
- 1962: President John F. Kennedy’s Executive Order 11063 ended FHA’s reliance on racially discriminatory redlining.
- 2008: During the economic crisis, FHA demonstrated its countercyclical role by maintaining mortgage financing access.
- 2021: FHA developed the COVID-19 Loss Mitigation waterfall to help borrowers avoid foreclosure.
FHA has introduced significant changes to remove barriers to homeownership, reduce costs, and support quality healthcare and affordable housing.
As the Federal Housing Administration celebrates its 90th anniversary, it continues to adapt and innovate, making homeownership accessible and sustainable for all Americans.
