Research findings are adding up to fears that the Federal Housing Administration’s (FHA) sharp loan volume increase of recent years is moving the agency “into uncharted, risky territory” making it more crucial than ever for policy makers to come up with “a delicate balancing act” that would ensure the FHA “is not pushed too far.”

An FHA Assessment Report released by the George Washington University Center for Real Estate and Urban Analysis warned that since the agency continues to grow market share and switched focus from its historical goal to insure low-downpayment home mortgages for low-to-moderate and first-time buyers to higher-balance mortgages, more reforms are needed to manage growing risks.

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