A: Home Ownership
Increase homeownership opportunities Other Information:
Overview: Opening doors to homeownership is a core aspect of HUD’s mission, originating when Congress created the Federal
Housing Administration(FHA) in the 1930s. Homeownership allows an individual or family to make an investment in the future.
A home is an asset that can grow in value and provide capital to finance future needs of a family, such as college educations
or retirement. Homeownership helps stabilize neighborhoods, strengthen communities, and stimulate economic growth. Research
has shown that homeownership improves outcomes for children on a number of dimensions, including school achievement and dropout
rates. Rapid changes in the U.S. housing market highlight the necessity of encouraging a balanced and reasonable approach
to homeownership, as well as the continuing need to provide appropriate support for renter families to take the step to homeownership.
Strategic Goal A focuses on HUD’s activities to expand homeownership opportunities for minorities, low-income families, and
other Americans. HUD’s activities under this strategic goal will help to make homeownership more accessible, affordable, and
secure for millions of families. Performance Measures: • An additional 5.5 million minority households become homeowners by
2010, and the share of first-time minority homebuyers among FHA home purchase mortgages remains above 35 percent.• The share
of FHA-insured home purchase mortgages for first-time homebuyers will remain above71 percent through 2011.• The share of first-time
minority homebuyers among FHA home purchase mortgages remains above 35 percent.• Between FY 2006 and FY 2011, 48,000 households
will purchase homes through the HOME Downpayment Assistance Initiative.• Between FY 2006 and FY 2011, over 739,000 households
will receive homeownership assistance with CDBG, HOME, HOPWA, and IHBG funds.• Increase the number of families achieving homeownership
under HUD’s Native American and Native Hawaiian housing and loan guarantee programs by guaranteeing 2,000 loans annually by
FY 2011.• Between FY 2006 and FY 2011, approximately 219,000 claims are expected to be submitted under the FHA Loss Mitigation
program. • Between FY 2006 and FY 2011, 6.5 million families will receive HUD housing counseling.• At least 30 percent of
clients receiving pre-purchase counseling will become mortgage-ready within90 days.• Minority clients will be at least 50
percent of total clients receiving housing counseling.• More that 50 percent of total mortgagors seeking help with resolving
or preventing mortgage delinquency will successfully avoid foreclosure.• Take the following steps to promote FHA loan products
as affordable mortgage options: Make FHA business processes more compatible with those used in the mortgage industry. Streamline
FHA programs to make them more accessible to homebuyers. Expand FHA products to meet the changing financial and housing needs
of the public.• Ginnie Mae will maintain liquidity in the market for single-family mortgages, VA loans and eligible multifamily
loans through FY 2011:o Securitize at least 95 percent of FHA single-family mortgages. Securitize at least 95 percent of VA
mortgages. Securitize at least 95 percent of eligible FHA multifamily mortgages.• Implementation of RESPA regulatory changes
will improve the mortgage finance process.• Enforcement of RESPA and the Interstate Land Sales Act will reduce unnecessary
housing costs.• Between FY 2006 and FY 2011, a total of 10,000 new homeownership units will be created through the HOPE VI
program.• Increase homeownership closings under existing PIH programs by 10,000 by FY 2011.• Through the HOPE VI Community
and Supportive Services program, 800 public housing families will become homeowners between FY 2006–FY 2011, from a FY 2005
baseline of 2,454 families.• Ensure that the default rate in the SHOP program does not exceed the comparable rate for FHA
insured loans.• Through the SHOP program, create $225 million in household equity by 2011, as measured by the cumulative total
of purchase price less outstanding mortgage balance at closing for assisted households.• FHA increases the percentage of at-risk
loans that substantively comply with FHA program requirements.• Release an upgraded default data reporting system to accommodate
lenders’ monthly electronic reporting of loans with a delinquency of 30 days or more and to enable lenders to report such
data via an FHA Connection Interface to this system.• Publish a rule requiring FHA lenders to use the new default data reporting
system to submit monthly electronic data on all loans that are 30 days or more delinquent.• Publish regulations for FHA mortgage
insurance programs that increase lender compliance and accountability.
Objective(s):
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