Final answer:
An FHA mortgage is insured by the FHA and was fundamental in boosting homeownership in the United States, despite facing criticism for contributing to discriminatory practices.
Step-by-step explanation:
An FHA mortgage is insured by the Federal Housing Administration (FHA), not issued by it. The purpose of this insurance is to encourage lenders to provide mortgages to individuals who might not qualify for conventional loans. This government agency, created in 1934, played a significant role in revitalizing the housing market during the Great Depression by promoting home ownership and establishing housing standards. Despite its positive impact on homeownership rates, the FHA has also faced criticism for its role in reinforcing residential segregation and discriminatory practices, such as redlining. FHA-insured mortgages are a cornerstone of U.S. housing finance, particularly for first-time homebuyers and those with less capital for down payments.