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David Dwillin, president and CEO of the National Housing Conference, warned on Sunday that without analyzing how it will affect the stability of the U.S. mortgage finance system, Sector Housing and Urban Development (HUD), FHA and major layoffs and program cuts are being made at Ginny May.
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The Bloomberg Act last week reported that at least 40% of the Federal Housing Administration (FHA) workforce is expected to be fired as part of a cost-cutting initiative.
Citing internal memos and anonymous HUD staff, the Washington Post on Sunday said HUD was poised to cut jobs of 4,300, with personnel dropping to 4,000 nationwide and the number allocated to homeless programs It reported that billions of dollars have been frozen.
Dworkin said the NHC would reduce staffing levels by up to 25% with mortgage guarantor Ginnie Mae being targeted for layoffs and more severe than reported. He said he confirmed this to media reports. Forced resignation and resignation.
“The environment of fear and confusion among housing leaders across the political spectrum was obvious,” Dworkin said in an editorial on Sunday. “There is a widespread fear that publicly pushing back to the actions of the administration will lead to retaliation.”
In a rebellion-like act on Monday, the video created by Ie was about President Trump kissing Elon Musk’s feet under the word “Real King” that took place on Sunday, “Long Live the Real King.” Hill reported that he depicts what he is doing.
Photo credit: Anthony Lamesa @ajlamesa/x.
“Another waste of taxpayers’ dollars and resources,” HUD spokesman Kasey Lovett said in a statement to The Hill. “All involved will be taken appropriate measures.”
The Trump administration claims that Musk is not the official administrator of the Department of Government Efficiency (DOGE), but the tech billionaire is laying off employees and eradicating suspected waste, fraud and fraud This has become a symbol of Doge’s aggressive move to reduce the federal government. abuse.
Government surveillance experts say Doge is shedding light on legitimate and long-standing issues, but have not revealed new cases of fraud. Or misleading
On February 14, Doge allegedly claimed it had “recovered” $1.9 billion in HUD funds. A mortgage servicer with a contract with HUD told INMAN that the money allocated to it under the expired contract was never spent.
Dworkin, a former Fannie May executive and adviser to President Obama and the senior Treasury officers during the first Trump administration, is considered a centralist advocate for affordable housing stakeholders.
For example, in an overview of the opportunities and risks for affordable housing brought about by the second Trump administration after the election, Dworkin could potentially lead to a “reboot” of HUD’s lead Scott Turner’s appointment I was optimistic that there was. In a region that is struggling.
Currently, Dworkin is warning about the unintended consequences that Doge’s actions could have on housing finance.
The NHC continues to work with members to avoid the consequences of actions by Doge staff who do not consider the impact of individual staff and contracts on the stability and private safety and health of their mortgage finance systems. entities that rely on government guardrails will turn the trucks they operate into trains.”
David Dworkin
Ginnie Mae’s Cut Staff – “an institution that makes billions of dollars for government while managing market safety and health” is “compared to eating seed corn,” writes Dworkin.
President Trump’s appointments to run these agencies will “recognize that they have to clean up the mess created by Doge staff,” Dworkin told Bloomberg.
Ginnie Mae does not buy or sell loans or issue mortgage-backed securities (MBS), but by ensuring that investors who purchase FHA, VA, and USDA pools receive payments, they can make the home a reality. It helps to keep money on loan.
According to Ginnie Mae, 99% of FHA single-family home loans are packaged in guaranteed MBS.
Ginnie Mae’s guarantees – coupled with FHA or VA guarantees – reduces the risks MBS investors adopt and the 1.2 million people who use those programs to buy or refinance their homes in 2024 Makes the rates more affordable for renters.
Hud and Ginnie Mae did not respond to Inman’s request for comment at the time of publication.
However, Lovett told the Washington Post that HUD will “continue to provide its mission to serve its critical functions, its rural, tribal, urban communities, and statutory responsibilities.”
A HUD spokesman directed the Washington Post to the Feb. 19 Post, with Turner’s press office publishing X, mask’s social media platform.
The post reports that the FHA is planning to fire almost half of its workforce in response to Bloomberg’s February 19th — characterizing the story’s headline as False, and HUD said it was “efficient.” He said he would focus on [and] Effective use of taxpayer dollars while prioritizing the important role that FHA plays in the mortgage market. ”
Dworkin said the NHC “is being careful to check reports based on facts and not rumors.” HUD said it denied many reports that half of its HFA staff would be fired on February 21.
“We’re now hearing that by Monday, February 24th, we’ve been instructed to prepare our list of employees to be fired so that they’re fired,” Dworkin said. said. “These recommendations must be approved by the secretary.”
The Washington Post on Sunday said HUD staff will take more direction from Doge Senior Advisor Scott Langmack, former COO of Real Estate Data, Analytics and Application Platform Kukun than from Turner, Trump’s Housing Secretary. I reported that I got it.
Citing an internal HUD memo, the post stated that HUD plans to:
This spring, we will cut staffing at the community planning and development offices that oversee veteran housing, disaster recovery and community block grants. Eliminating 77% of positions in the Fair Housing Authority, half of equal opportunity fires eliminates 50% of employees in the Public and Indian Housing Authority, serving 3.5 million households
The Post reported that HUD had already lost 600 employees, accepted a voluntary acquisition, including veterans, and widespread shootings among 500 probation staff.
Dworkin warned that loss of fair housing data collected by HUD and the layoffs of regulatory staff at the HUD and the Consumer Financial Protection Agency “may lead to long-term legal exposure for lenders.”
The potential losses in housing funds and community development blocks used by states, local governments and developers to build affordable homes are like “tearing the trucks” that the housing economy moves, says Dworkin I am writing.
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