If Congress does not act in time to increase the federal debt ceiling, the Federal Housing Administration (FHA) will likely shut down — cutting off a key source of mortgage credit for homebuyers.

Center for American Progress (CAP) associate director David Min expects the White House will deem FHA a "non-essential" agency and stop all loan approvals by the federal mortgage insurance agency.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.