August 13, 2020

HUD Programs to Help Housing Market

After the collapse of the American housing market, various types of programs have been attempted to help dig it out, but as of yet have had very little impact on the market. In fact recent information shows that sales of homes continued to fall last month. They fell by 3.8 percent for previously owned homes and 2.1 percent for new homes. The U.S. government is trying to look at what possible options it may have to help the market and especially help home owners that are facing the threat of going into foreclosure.

Currently, there is a program out there that is funded by taxpayer money where states can write down the principal that homeowners owe. The problem with this program though is the fact that it is only a small drop in the bucket as to what would be needed to help everybody that is in trouble. So the government has to look at other options. Possible ideas that have been looked at include: Allowing Fannie Mae and Freddie Mac to forgive some of the homeowner’s mortgage debt, forgive loans altogether and have the taxpayers or banks absorb the losses, or obtain financial penalties from the banks with the greatest amounts of foreclosures and use that funding to reduce balances.

HUD Programs to Help Housing Market

Another option to help stimulate the housing market includes possible tax incentives, however, due to the budget deficit facing the nation, it would be really hard to pass anything that would require more government spending.

A few other areas that the government is researching include: looking into the size of mortgages that can be guaranteed by the government; to possibly adjust programs that are currently out there that are meant to prevent foreclosures which would include modifications of loans; and figuring out what to do with a program that was started under the Dodd-Frank regulation bill and that is currently run by the Department of Housing and Urban Development (HUD) for unemployed homeowners. The timing of HUD’s current program is running out and an extension seems unlikely since the Congress has a negative opinion on this program.

In other news, the mortgage industry is facing some new scrutiny in regards to the Fair Housing Act when a couple of mortgages were denied because one of the mortgage applicants was on a maternity leave and they were unable to accurately assess the income because they could not determine if the woman would be going back to work. Although the law on maternity leave is clear, some loan officers claim that they have unclear information on how to handle such situations and then, therefore, act accordingly. HUD is now looking into this issue and is trying to make sure that the guidance the loan officers are receiving comply with the Fair Housing Act.

The housing market definitely has a lot on its plate right now and hopefully proper steps can be taken to get things turning around.

Related Links:

Reuters News Story

HUD Website

More about the Dodd-Frank regulation bill

Wikipedia’s page for HUD

Fair Housing Laws


  1. biff ringgold says:

    i would like to move from my present location and need a vocher how would i obtain this information also i`ve submitted an application for transfer tell me about the process

  2. Elizabeth says:

    Hello, my name is Elizabeth & I’m from Tulsa Oklahoma! I’m a single mom of 4 wonderful kids. Unfortunately, I became disabled 4yrs ago & I’m only 37yrs old now! My kids have been great throughout our struggles, but being on disability & being as young as I am, I’m not financially able to provide us with a safe, place to call home anymore! Not looking for hand outs or begging nobody, but I don’t know where or to turn to….Got any advice?

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