Allowing direct lenders in the Farm Credit System to participate in FHA mortgage insurance programs as approved mortgagees and lenders may not present a true picture of credit availability in rural areas and could end up costing taxpayers, the Mortgage Bankers Association warned. In a recent letter to HUDs Office of Lender Activities and Program Compliance, the MBA added that the proposal may be in conflict with the administrations goal of reducing government participation in the housing finance market. Steve OConnor, MBA senior vice president, said Farm Credit loans with their implicit government guarantee and FHA-insured loans with their explicit government warranty would ...