Final answer:
The FHA's function is to promote home loans and homeownership by insuring mortgages, which made it easier and cheaper for banks to offer loans. It also aimed to maintain housing safety standards, but inadvertently contributed to discriminatory practices such as redlining.
Step-by-step explanation:
The function of the Federal Housing Administration (FHA) is to encourage banks to make home loans by insuring these loans, which makes it more affordable and less risky for banks. The FHA also works to ensure housing meets safety standards and to increase overall homeownership and access to affordable housing. However, FHA policies also had unintended consequences, leading to practices like redlining, which contributed to residential segregation and limited the access of minorities to suburbs and better housing opportunities. The FHA's role in housing has evolved over time, influencing lending practices and the distribution of home loans.