Which government agency oversees the Federal Housing Administration (FHA) loans?

The Department of Housing and Urban Development (HUD) oversees the Federal Housing Administration (FHA) loans, making it the correct choice in this question. HUD is a federal agency that focuses on national policies and programs related to housing and urban development, and it plays a significant role in the administration of FHA-insured loans.

The FHA is part of HUD and was created to help increase homeownership by providing mortgage insurance on loans made by approved lenders. By overseeing the FHA, HUD ensures that the programs and policies align with broader housing goals, such as promoting affordable housing options and ensuring access to mortgage credit for underserved populations.

The other agencies mentioned have distinct functions that do not include direct oversight of FHA loans. For instance, the Federal Housing Finance Agency (FHFA) primarily oversees government-sponsored enterprises like Fannie Mae and Freddie Mac, while the Federal Trade Commission (FTC) deals with consumer protection and antitrust laws and does not administer housing loans. The Department of Veterans Affairs (VA) focuses on loans and benefits specifically for veterans, not for the general population like the FHA. Thus, the role of HUD is unique and critical when it comes to the management and regulation of FHA loans.