Possible transcriptional factor. May play a role in the development of the epithelium of hair and whisker placodes and that of teeth. Defects in FOXI3 are the cause of canine ectodermal dysplasia (CED). CED is an autosomal semi-dominant trait characterized by missing or abnormally shaped teeth in addition to a hair coat that is sparse or absent. Heterozygous mutants are found in Mexican and Peruvian hairless dogs and in Chinese crested dogs. Homozygous mutants die during embryogenesis.