Chapter 1 -
Overview of Key HUD Offices and
Helpful Information Resources
Learning Objectives
• Better understand the scope of HUD activity in housing in America.
• Identify key offices within HUD that have an impact on multifamily housing programs.
• Identify the general responsibilities of the HUD field offices' staff who regulate your
client.
• Understand the role of HUD's Office of Inspector General in program enforcement and
independent auditor workpaper review.
• Identify key sources of information to keep abreast of program changes.
Key Offices within HUD
The Department of Housing and Urban Development (HUD) plays both a direct and indirect role
in the arena of housing in the United States and its territories through its component offices.
Following is an introduction to the component offices and sub-offices.
Office of Community Planning and Development
The Office of Community Planning and Development (CPD) seeks to develop viable
communities by promoting integrated approaches that provide decent housing, a suitable living
environment, and expand economic opportunities for low and moderate income persons. The
primary means towards this end is the development of partnerships among all levels of
government, state, county, and local jurisdictions and the private sector, including for-profit and
non-profit organizations.
Consistent with these objectives, the Office of Community Planning and Development has
developed a set of underlying principles that are used in carrying out its mission.
1. Community building begins with job creation, employment, and creation of safe, decent
and affordable housing.
2. Planning and execution of community development initiatives must be bottom up and
community driven.
3. Complex problems require coordinated, comprehensive, and sustainable solutions.
4. Government must be streamlined to be made more efficient and effective.
5. Citizen participation in Federal, State and local government can be increased through
communication and better access to information.
CPD seeks to encourage empowerment of local residents by helping to give them a voice in the
future of their neighborhoods; stimulate the creation of community based organizations; and
enhance the management skills of existing organizations so they can achieve greater production
capacity. Housing and community development are not viewed as separate programs, but rather
as among the myriad elements that make up a comprehensive vision of community development.
These groups are at the heart of a bottom-up housing and community development strategy.
Office of Public and Indian Housing
The second component of HUD’s mission to provide housing is the Office of Public and Indian
Housing. The aim of the Office of Public and Indian Housing (PIH) is to ensure safe, decent, and
affordable housing; create opportunities for residents' self-sufficiency and economic
independence; and assure fiscal integrity by all program participants.
PIH is responsible for administering and managing a range of programs authorized and funded
by Congress under the basic provisions of the U.S. Housing, Act of 1937. The Act created the
public and Indian housing program, which now provides affordable housing to over 1.3 million
households nationwide.
Congress has provided funds not only for the development of additional public and Indian
housing units, but also for the modernization of the housing stock, the improvement of the
management of the programs by the public and Indian housing authorities which own the
housing, and for programs to address crime and security and provide supportive services and
tenant opportunities.
Office of Housing
The third component supporting of HUD’S mission is the Office of Housing, which is the focus
of this course. Within the Office of Housing there are two business areas, Single Family Housing
and Multifamily Housing. Multifamily Housing supplies the financing and tenant subsidies for
the HUD-assisted projects. Single Family supplies the FHA insured mortgage program for
mortgage lenders. Both of these offices require annual financial and compliance audits for their
respective programs and have guidance in the HUD Consolidated Audit Guide.
The Office of Housing provides vital public services through its nationally administered
programs. It oversees the Federal Housing Administration (FHA), the largest mortgage insurer
in the world, as well as regulates housing industry business.
The mission of the Office of Housing is to
• Contribute to building and preserving healthy neighborhoods and communities;
• Maintain and expand homeownership, rental housing and healthcare opportunities;
• Stabilize credit markets in times of economic disruption; and
• Operate with a high degree of public and fiscal accountability.
Single Family Housing
HUD's Single Family programs include mortgage insurance on loans to purchase new or existing
homes, condominiums, manufactured housing, houses needing rehabilitation, and for reverse
equity mortgages to elderly homeowners. Single Family Insured Loans, the program
participants, and program requirements are the focus of Chapter 7 of this course.
FHA Single Family Lender Approval Types
Nonsupervised Loan Correspondent: This is the only type of approval mortgage brokers can
apply for and allows them to originate Title II single family loans and/or Title I loans.
Correspondent lenders and mortgage lenders who only want to originate should apply for this
type of approval.
Nonsupervised Mortgagee: Correspondent lenders and mortgage lenders should apply for this
type of approval if they want to do any of the following lender functions in addition to
origination: underwriting, servicing and owning any type of FHA insured loan.
Supervised Loan Correspondent: Banks, savings banks and credit unions should apply for this
type of approval if they only want to originate Title II single family loans and/or Title I loans.
Supervised Mortgagee: Banks, savings banks and credit unions should apply for this type of
approval if they want to do any of the following lender functions in addition to origination:
underwriting, servicing and owning any type of FHA insured loan.
Government Mortgagee: Federal, State and local government agencies should apply for this type
of approval if they want to do any of the following lender functions: origination, underwriting,
servicing and owning any type of FHA insured loan.
Investing Mortgagee: Any entity that only wants to own FHA insured loans should apply for this
type of approval.
All approval types, except an investing mortgagee, can fund FHA loans.
http://www.hud.gov/offices/hsg/sfh/lender/approvalreq20080529.pdf provides a two page
summary of the lender approval requirements.
http://www.hud.gov/offices/hsg/sfh/lender/mtgeekit.cfm provides a listing of the essential HUD
Handbooks for HUD approved mortgagees.
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/ provides access to current and prior
year’s mortgagee letters. FHA utilizes mortgagee letters to disseminate HUD policy to program
participants.
FHA provides initial approval to eligible mortgagees and loan correspondents for participation in
the program. On an annual basis, FHA approves lenders for continued participation in the FHA...
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