HUD Cuts Could Derail Mortgage Underwriting Agency

Staffing cuts at the Federal Housing Administration could imperil affordable housing projects and mortgage programs for new homeowners.

1 minute read

February 25, 2025, 5:00 AM PST

By Diana Ionescu @aworkoffiction


Close-up on mortgage application terms and house-shaped gold keychain with gold key on it.

Brian Jackson / Adobe Stock

A recommendation by the Trump administration to cut 40 percent of the Department of Housing and Urban Development’s Office of Housing, which contains the Federal Housing Administration (FHA), could have significant impacts on mortgage insurance for potential homebuyers, reports Kriston Capps in Bloomberg CityLab.

“The FHA provides mortgage insurance for single-family homes as well as apartment buildings, hospitals, nursing homes and other properties. In FY 2024 alone, the FHA insured more than 498,000 first-time homebuyers, many of whom would not be able to afford their mortgages otherwise,” Capps writes. Capps also notes that the FHA is a profit center for the government, explaining that “FHA-insured loans subsidize the federal budget, not the other way around.” 

Firing close to half of the staff at the agency could derail its ability to underwrite loans. “This is a potentially acute problem for projects that are difficult to close and require more hands-on personnel, such as rural hospitals or affordable housing developments.”

Wednesday, February 19, 2025 in Bloomberg CityLab

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Wastewater pouring out from a pipe.

Alabama: Trump Terminates Settlements for Black Communities Harmed By Raw Sewage

Trump deemed the landmark civil rights agreement “illegal DEI and environmental justice policy.”

April 13, 2025 - Inside Climate News

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 16, 2025 - Diana Ionescu

Black and white photos of camp made up of small 'earthquake shacks' in Dolores Park in 1906 after the San Francisco earthquake.

The 120 Year Old Tiny Home Villages That Sheltered San Francisco’s Earthquake Refugees

More than a century ago, San Francisco mobilized to house thousands of residents displaced by the 1906 earthquake. Could their strategy offer a model for the present?

April 15, 2025 - Charles F. Bloszies

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20 - Streetsblog USA

Close-up on BLM sign on Continental Divide Trail in Rawlins, Wyoming.

BLM To Rescind Public Lands Rule

The change will downgrade conservation, once again putting federal land at risk for mining and other extractive uses.

April 20 - Public Domain

Calvary Street bridge over freeway in Indianapolis, Indiana.

Indy Neighborhood Group Builds Temporary Multi-Use Path

Community members, aided in part by funding from the city, repurposed a vehicle lane to create a protected bike and pedestrian path for the summer season.

April 20 - Smart Cities Dive