ASU 2014-14

Under certain government-sponsored loan guarantee programs, qualifying
creditors can extend mortgage loans to borrowers with a guarantee that entitles
the creditor to recover all or a portion of the unpaid principal balance from the
government if the borrower defaults. The most common government-sponsored
programs that provide such guarantees in the United States are those offered by
the Federal Housing Administration (FHA) of the U.S. Department of Housing
and Urban Development (HUD), and the U.S Department of Veterans Affairs
(VA). The FHA provides a full guarantee of the unpaid principal balance of
certain residential and nonresidential mortgage loans.