Does FHA issue MBS

No, the Federal Housing Administration (FHA) does not issue mortgage-backed securities (MBS) directly. Instead, it provides mortgage insurance on loans made by approved lenders, which helps to facilitate the issuance of MBS backed by those insured loans. This insurance reduces the risk for lenders, thereby encouraging them to make more loans that can be bundled into MBS. The actual issuance of MBS is typically handled by government-sponsored enterprises like Fannie Mae and Freddie Mac.