A new Fed study casts important light on why LMI households continue to lose mortgage-credit ground, a problem with profound impact on economic equality as we detailed in a recent in-depth report. The Fed staff paper points to the sharp drop in FHA originations by the three largest banks as a prime driver of LMI-scarcity – making it in our view still more important to think a lot harder about FHA than the debate now over premium rates would suggest.
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