Illustration of a blue house surrounded by blue border; white text on border with each word separated by a white star.
The National Housing Act established the Federal Housing Administration (FHA) in 1934. It was meant to regulate interest rates and mortgage terms after the banking crisis of 1930s and to insure mortgages issued by qualified lenders, so the FHA covered the unpaid balances on mortgages. It also set standards for construction, underwriting, and insured loans made by banks and other private lenders. The program lead to stability in the housing market and the increased availability of funding for home building and purchasing. The program still exists today and its main purpose is to improve housing standards and conditions, provide adequate home financing, and to stabilize the mortgage market. A part of the Department of Housing and Urban Development, it is the only completely self-funded government agency.