New research from the Department of Housing and Urban Development has found that, despite their differences, the FHA and the U.S. Department of Agriculture rural mortgage programs overlap considerably. The study, “Mortgage Choice in Rural Housing,” also found that pricing, rather than underwriting, drives borrowers’ decision to obtain either an FHA or Rural Housing Service-guaranteed mortgage loan. The study’s findings can help guide the policy debate of whether elimination of the RHS home-loan guarantee program or consolidation with the FHA can help simplify and streamline rural-housing financing, according to authors Kevin Park and Joshua Miller. The study used Home Mortgage Disclosure Act data, focusing on first-lien applications for purchase of owner-occupied houses between January 2012 and September 2015. Loan amounts may not exceed the ...