HUD Closed Friday Due to Budget Cuts

Department of Housing and Urban Development (HUD) employees will be furloughed this Friday for the third time since sequestration cuts took effect in March 2013.

June 14 will be the third of a total of seven dates on which the department will close its door as a result of mandatory federal budget cuts totaling $85 billion in the next 10 years, known as sequestration.

HUD employees have already been furloughed on two other days, May 10 and May 24, as the department looks to reduce its salaries and expenses by $66.6 million. 

Advertisement

“At this time, the Department of Housing and Urban Development is taking every step to mitigate the effects of these cuts, but based on our analysis, it is likely that your organization’s business processes may be affected,” said HUD Commissioner Carol Galante in a letter announcing the dates to multifamily industry partners in March 2013. “For example, the sequester will require Department to furlough staff and take reductions for systems maintenance and in other areas which may result in delays in processing mortgage insurance applications.”

HUD Secretary Shaun Donovan said in testimony before the Senate Appropriations Committee earlier this year that sequestration will limit the FHA’s ability to provide service in a range in areas, including FHA mortgage insurance.

“Sequestration would also jeopardize the FHA’s ability to process loans at a time when FHA represents a substantial portion of all single-family loan originations, including almost half of all first-time homebuyers, as well as 25 percent of all new multifamily construction,” he said.

The remaining dates on which HUD plans to close its doors are July 5, July 22, Aug. 16, and Aug. 30.  

Written by Alyssa Gerace

string(81) "https://reversemortgagedaily.com/2013/06/11/hud-closed-friday-due-to-budget-cuts/"

Share your opinion