What is HUD?

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Real Estate

Overview


HUD, The Department of Housing and Urban Development is a cabinet level agency that oversees housing laws, guarantees securities, and even gives vouchers to help low income families get into a rental units. Starting out as the Federal Housing Administration, founded after the Great Depression in 1934, their responsibility was to help Americans with their housing needs. Their responsibilities have broadened throughout the years as they have grown. In the mid 1900s, Housing and Urban Development was created and FHA became an office under the department. 

 

What it Does


The Department of Housing and Urban Development is now responsible for more than when it started out. They now have many offices under their department that focus on certain tasks.


A few of them are:


Federal Housing Administration- After the Great Depression the FHA was created in order to help families secure a home. They stimulated the housing market by providing people with mortgage insurance. They also regulated interest rates to incentivize people to get the loans that they will insure.


Office of Community Planning and Development- Through various kinds of grant programs, CPD tries to ease homelessness and help low-income communities fund developments in order to grow.


Government National Mortgage Association- Ginnie Mae or GNMA is a federal corporation that guarantees to lenders of mortgage backed securities, that they will be paid back on time. Most of these securities have been insured by another government agency too.