1.Andrew Hughes Nominated as HUD Deputy Secretary

On Wednesday, President Trump nominated Andrew Hughes to serve as the Deputy Secretary of the U.S. Department of Housing and Urban Development (HUD). Hughes has a longstanding relationship with the Trump Administration, having worked on HUD Secretary Ben Carson’s presidential campaign in 2016 before serving as Carson’s Chief of Staff at HUD during the previous Trump Administration.

Following his tenure at HUD, Hughes became the Executive Director of the American Cornerstone Institute, a think tank founded by Secretary Carson. His background also includes work in the University of Texas education system, where he managed social media and websites.

If confirmed, Hughes is expected to maintain policy continuity with the administration’s broader housing initiatives. His nomination signals a preference for leadership with strong ties to previous HUD leadership rather than introducing a new policy direction.

2.Bill Pulte Confirmed as FHFA Director

On Thursday, Bill Pulte was confirmed as the Director of the Federal Housing Finance Agency (FHFA). Pulte, a known advocate for housing and community development, has already made headlines with his stance on the conservatorship of Fannie Mae and Freddie Mac.

In a press interview following his confirmation, Pulte downplayed the urgency of ending the GSE conservatorship, emphasizing the need to carefully evaluate its impact on mortgage rates:

“It’s critical to ensure any discussion about exiting conservatorship needs not only to ensure safety and soundness but how it would affect mortgage rates.”

Pulte’s remarks suggest that, unless there is a major policy shift from the White House, efforts to remove Fannie Mae and Freddie Mac from conservatorship will not be a high priority in the coming months. This could mean continued stability in how these entities operate, but it also delays any potential market changes that could arise from their privatization.

3.Federal Agency Layoffs and Reorganization Plans Submitted

Thursday marked the deadline for federal agencies to submit their plans for implementing President Trump’s executive order, issued on February 11, requiring agencies to prepare for large-scale reductions-in-force (RIFs)—essentially, government-wide layoffs. This follows guidance from the Office of Management and Budget (OMB) issued on February 26, directing agencies on how to comply with the order.

Although full details have not yet been released, it is widely expected that the cuts will be substantial across multiple federal housing agencies, including HUD, FHA, Ginnie Mae, and the VA.

4.Potential Impact on FHA & Ginnie Mae

The extent of the layoffs remains uncertain, but reports indicate that the FHA’s support services (such as housing counseling programs) may be reduced, and certain locations, like Homeownership Centers, could face closures. Additionally, cuts to FHA and Ginnie Mae’s use of third-party contractors could have operational implications, particularly in IT systems and compliance oversight.

VA Secretary Doug Collins has already announced a 15% reduction in the VA workforce, amounting to 80,000 employees, and similar reductions are expected across other federal agencies, including those overseeing mortgage lending and homeownership programs.

5.What This Means for Mortgage Brokers and Lenders

These changes could have several effects on the mortgage industry. With Andrew Hughes’ nomination as HUD Deputy Secretary, leadership at HUD is expected to remain aligned with the administration’s existing housing policies, ensuring continuity in regulatory oversight and program management. Meanwhile, Bill Pulte’s confirmation as FHFA Director indicates that there will likely be little movement on ending the conservatorship of Fannie Mae and Freddie Mac, maintaining the status quo in the secondary mortgage market and reducing uncertainty for lenders. However, potential staff reductions and contract cuts at FHA and Ginnie Mae could introduce operational challenges, slowing down services, affecting program availability, and causing delays in regulatory guidance or approvals, all of which may impact lenders and borrowers alike.