Final answer:
The Federal Housing Administration (FHA) was created to stabilize the nation's mortgage markets and expand opportunities for homeownership and affordable rental housing.
Step-by-step explanation:
The Federal Housing Administration (FHA) was created to stabilize the nation's mortgage markets and expand opportunities for homeownership and affordable rental housing. It was established in 1934 as part of Franklin D. Roosevelt's Depression-Era New Deal to encourage banks to make inexpensive loans to people seeking to buy new homes while ensuring that housing was built up to new safety standards. The FHA played a significant role in increasing homeownership rates in the United States and promoting the housing boom after World War II.