The correct answer is option A) the Federal Housing Administration.
What was the main purpose of the Federal Housing Administration?
The FHA's primary function was to ensure home mortgage loans were made by banks and other private lenders, thereby encouraging them to make more loans to prospective home buyers.
What was the impact of the Federal Housing Administration?
Among its many achievements, FHA modernized the American mortgage system, improved the quality of the nation's housing stock, prevented millions of Americans from losing their homes, allowed millions more to purchase their first home, and financed the construction of millions of modestly priced rental units.
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