caa a22 4500 445316403 CHVBK 20180317142648.0 cr unu---uuuuu 170323e20111101xx s 000 0 eng 10.1007/s11146-009-9218-7 doi (NATIONALLICENCE)springer-10.1007/s11146-009-9218-7 FHA vs. Subprime Mortgage Originations: Is FHA the Answer to Subprime Lending? [Elektronische Daten] [John Karikari, Ioan Voicu, Irene Fang] We analyze originations of mortgages guaranteed by the Federal Housing Administration (FHA) and of subprime mortgages—loans that dominate the non-prime mortgage market for riskier borrowers. Using home purchase and refinance loans data for 2005, we estimate that a sizeable number of borrowers who got subprime loans would have qualified for FHA loans, implying a potential net flow of borrowers from subprime to FHA, especially for refinance loans at a rate of about 30%. Also, consistent with the FHA's modernization proposal to increase its loan limits, we find that increasing the limits on FHA loans could help to attract borrowers, mostly of home purchase loans, who are likely to be constrained by the lower-priced house limits. Our findings are generally in line with the recent increased flow of mortgages to FHA, and suggest that FHA loans could be the answer to the current subprime lending crisis. Springer Science+Business Media, LLC, 2009 Subprime lending nationallicence Mortgage originations nationallicence Home purchase nationallicence Refinance nationallicence FHA loan limits nationallicence Karikari John Center for Economics, U.S. Government Accountability Office (GAO), 441 G St, NW, mailstop 617KE, 20548, Washington, DC, USA aut Voicu Ioan Compliance Risk Analysis Division, Office of the Comptroller of the Currency (OCC), 250 E St SW, mailstop 2-1, 20219, Washington, DC, USA aut Fang Irene Compliance Risk Analysis Division, Office of the Comptroller of the Currency (OCC), 250 E St SW, mailstop 2-1, 20219, Washington, DC, USA aut The Journal of Real Estate Finance and Economics Springer US; http://www.springer-ny.com 43/4(2011-11-01), 441-458 0895-5638 43:4<441 2011 43 11146 https://doi.org/10.1007/s11146-009-9218-7 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s11146-009-9218-7 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Karikari John Center for Economics, U.S. Government Accountability Office (GAO), 441 G St, NW, mailstop 617KE, 20548, Washington, DC, USA aut NATIONALLICENCE 700 1- Voicu Ioan Compliance Risk Analysis Division, Office of the Comptroller of the Currency (OCC), 250 E St SW, mailstop 2-1, 20219, Washington, DC, USA aut NATIONALLICENCE 700 1- Fang Irene Compliance Risk Analysis Division, Office of the Comptroller of the Currency (OCC), 250 E St SW, mailstop 2-1, 20219, Washington, DC, USA aut NATIONALLICENCE 773 0- The Journal of Real Estate Finance and Economics Springer US; http://www.springer-ny.com 43/4(2011-11-01), 441-458 0895-5638 43:4<441 2011 43 11146 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer