(RECAP: FHA mortgage loans have historically been riskier than conventional mortgage loans because borrowers on FHA loans typically have lower credit scores and high LTV ratios on their loans. The surprising recent data shows, but, that FHA loans may not be as risky as they have been historically—and in fact, lately, have been less risky than conventional loans. Not only is the risk down for FHA/VA/USDA loans down compared with conventional mortgage loans, but the volume is up. The recently-released American Enterprise Institute/First American National Mortgage Market Index showed an increase of 9.2 percent in Q2 2016, compared with last year, and that the share of FHA-backed mortgage loans has increased relative to the volume of conventional loans.)

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