What is the new HUD secretary Scott Turner waiting for?

To begin with, HUD is a $ 73 billion company that also checks more than $ 2.6 trillion guaranteed mortgages by the government. As always, the policy is the same as staff, so it will be crucial for secretary Turner to fill key positions with seasoned professionals in public and subsidized homes, fair housing/lending, mortgage banking and financial markets.

Public and Indian housing and project-based rental assistance represent the vast majority of HUD-Budget-Lake than $ 43 billion and help more than 4.6 million households. The unfulfilled need in social housing is enormous and is related to the affordability crisis for housing that will encounter millions of Americans, leaving many homeless people behind.

According to Hud, the number of people who experienced homelessness in 2024 rose more than 18% compared to the previous year. The National Low Income Housing Coalition Estimates There is a shortage of 7.3 million units affordable rental homes throughout the country, in particular expensive metropolitan areas. Changing the tide on this plague will be one of the most important performance of the secretary Turner.

Compliance with the letter and the spirit of the Fair Housing Act Is the core of Hud’s mission. Secretary Turner will have to navigate to navigate territory that the robust fair lending and fair housing enforcement of Hud guarantees and strengthens, while the withdrawal of the previous Trump administration “Dislike impact” rule is solved by the BIDEN -administration (and replacement of an outdated Obama ERA rule from 2013). He will want to keep new measures in accordance with those of the Supreme Court Inclusive communities Decide that sketched a path that allows HUD to fulfill his mission to encourage affordable homes.

The Federal Housing Administration (FHA), Although enjoying record levels of capital as house prices have risen, the uncertainty has ahead because a large number of borrowers continue to refute their loans. The FHA portfolio is located north of $ 1.5 trillion and more than 8 million active loans.

Nowadays, however, more than 1.7 million FHA-Leners used a so-called “partial claim” to get their mortgage flow and to keep them at home. Four years ago that number was 400,000. FHA has done admirable work to keep in their homes in the aftermath of the pandemic of the Pandemie, and develops the training or “loss restriction” if necessary, but these programs can only do so much.

Moreover, the reverse mortgage portfolio of HUD continues to experience stress, largely due to the current interest rate environment. Despite an apparently strong capital position, such as reflected in the most recent report to the congress, higher interest rates have considerably delayed the origin of origin and significantly influenced the warehouse lines of the lenders.

All this points to the need for strong risk management, not only at FHA but in the entire department. Given the size of the portfolio and the complexity of the programs, a sharp focus will be vital in the next four years.

The HUD housing office will also have to continue to manage the home capacity produced effectively. Manufactured homes are currently offering a roof overhead for more than 22 million American households, not at all, so it is the duty on HUD to ensure that this affordable option remains viable.

Often overlooked the Government National MortGage Association (Ginnie Mae), whose senior leadership is understaffed with recent retirement and personnel statement. It is remarkable that since 2009 there has been no Republican Senate-confirmed Ginnie Mae President, although the importance of it cannot be underestimated for our housing system because it supports FHA, USDA, And Va Loans. This sub -agency within HUD also has the eyes of the global financial markets on them, with almost half of Ginnie Mae Securities owned by foreign investors.

In the coming years, Ginnie Mae will have to transfer his mortgage -backed securities (MBS) platform from functionality at polar level to loan level, including the possibility of transferring maintenance of individual loans in a pool, a goal set by the latter by the Last through the last Trump administration. There is a large -scale redesign initiative, which costs tens of millions of dollars, to ensure that the platform meets the needs and expectations of stakeholders. Ginnie Mae also makes changes that will improve the liquidity for HUD -so -called mortgages, which significantly reduces Ginnie Mae -Emittent the standard risk of the issue of Ginnie Mae Hecm MBS 2.0.

In recent years, dozens of billions of dollars have flowed through HUD to help communities with natural disasters. Although FEMA is the tip of the spear during these disasters, less well -known HUD is the major role in the long -term recovery of individuals and households and in the redevelopment of destroyed communities. Secretary Turner will probably spend a large part of his time on efficient, effective and with integrity, which means that those who actually have to benefit from the help and benefit in time.

HUD will have to continue to upgrade his IT infrastructure to manage the countless issues pending the new HUD secretary. FHA IT Modernization was an important work-in-progress among both the Trump and Biden administrations. Although a focus on FHA, systems in HUD must be modernized to improve performance.

In short, there are huge challenges and opportunities that the new HUD secretary and his team are waiting. Secretary Turner defeated strong opportunities when he led the opportunities zones of the last Trump administration that benefited subordinated communities in relation to billions of private investments that lives have transformed.

There is every indication secretary Turner will once again meet the moment for millions of Americans trust him today.

Brian Montgomery is one of the founders of Washington, DC-based gate house strategies. Montgomery previously served as a deputy secretary of HUD in the first Trump government, a position he simultaneously held with Commissioner of the Federal Housing Administration.

This column does not necessarily reflect the opinion of the editorial department of Housingwire and the owners.

To contact the author of this story:
Brian Montgomery on [email protected]

To contact the editor who is responsible for this story:
Sarah Wheeler at [email protected]