They assumed, in fact, that most wouldn’t be able to and would have to refinance into new, equally unaffordable loans. This process would produce an endless cycle of fees for the lenders — but only if home prices rose, fairy-tale-like, ... The loan itself is made by a bank, a savings and loan association, a mortgage company, a credit union, or any other lender. For it to become an FHA mortgage loan, the lender would have to be approved by the Federal Housing Administration.
