HUD Secretary Julian Castro cited the importance of home building to the economy in an address today to the NAHB Board of Directors in Dallas.
“Builders are part of our nation’s economic backbone,” said Castro. “You always have been. And HUD is committed to partnering with you to ensure that the hard-won progress we’re seeing in our housing market continues to grow for many years to come.”
Equating a strong housing market to a strong economy, Castro said, “We know that when the folks in this room succeed, it’s good news for our entire economy. It means that construction workers, electricians and plumbers are on the job. It means that goods – from lumber and vinyl siding, to tile, pipes, carpet and linoleum flooring – are being shipped from factories and making their way across our railways and roads. And it means more small businesses are thriving.”
Expanding Housing Credit
Stating that “expanding access to credit for more Americans looking to buy a home” is a priority for HUD, Castro said that HUD has overhauled its “Housing Policy Handbook,” streamlining the compliance process and bringing together more than 900 mortgagee letters into a single document.
“It’s another step we’re taking to make it easier for lenders to do business with HUD,” he said.
He also observed that hundreds of thousands of buyers are benefitting from a cut in FHA mortgage insurance premiums that were supported by NAHB and went into effect at the beginning of 2015.
“In just the first six months of this year, FHA endorsed more than 735,000 home loans – almost as many as we endorsed in all of 2014,” said Castro. “A majority of those loans are being secured for first-time home buyers. Eighty percent of FHA-insured mortgages this past June went to folks opening the door to their first home.”
Castro said that HUD is also working to spur more affordable housing construction.
“One of the ways we’re doing that is by expanding a program that helps builders of Low-Income Housing Tax Credit projects get those projects approved faster,” the secretary said.
Celebrating HUD’s 50th Anniversary
Before addressing the board, NAHB Chairman Tom Woods presented Castro with a special proclamation from NAHB commemorating HUD’s 50th anniversary. It reads:
“NOW, THEREFORE, BE IT RESOLVED that the National Association of Home Builders looks forward to continuing its successful collaborative relationship with HUD to ensure that housing remains a national priority and to promote policies that support improved home ownership and rental opportunities for all Americans.”