Based on the expected capital reserve balance at the Federal Housing Administration, President Obama’s budget projects that no mandatory appropriations will be required for the agency.
As part of the president’s fiscal-year 2015 budget, the Department of Housing and Urban Development released its own proposed budget.
Among four key principles outlined in HUD’s budget is economic growth through increased access to credit and strengthening of FHA.
“HUD’s budget is an essential component of the president’s vision of investing in the things we need to grow our economy, create jobs, increase skills training and improve education — while continuing long term deficit reduction,” HUD stated.
HUD’s budget was increased 2.6 percent from 2014 to $46.66 billion, including $0.06 billion for housing counseling..
HUD estimates that FHA will finish this year with a capital reserve balance of $7.8 billion.
No mandatory appropriation for FHA is expected to be needed from the Department of the Treasury.
The budget reflects funds to create a new FHA program, Homeowners Armed with Knowledge — or HAWK. The program will reportedly increase access to credit for first-time homebuyers who are underserved by the current mortgage market and further strengthen the FHA fund.
