1.House Subcommittee Hearing: “Decades of Dysfunction: Restoring Accountability at HUD”

On Tuesday, the House Subcommittee on Financial Services held a hearing centered on allegations of mismanagement at HUD. The only witness present was Acting Inspector General Stephen Begg, who responded to questions surrounding inefficiencies in public housing programs and the administration of Community Development Block Grant (“CDBG“) funds.

The discussion largely focused on oversight and accountability, with Republican members pressing the need for stronger performance and efficiency standards. Much of their emphasis was placed on the Department of Government Efficiency (“DOGE“) initiative and how it might be used to address longstanding issues at HUD.

Democratic members, meanwhile, turned their attention to potential staffing reductions, questioning how DOGE-related efforts could impact HUD personnel. Although no specific staffing changes were confirmed, the Acting IG noted that the issue is being closely monitored.

A consistent thread across party lines was concern over HUD’s outdated IT infrastructure. Lawmakers repeatedly highlighted the need for modernization, noting that updated systems would not only improve efficiency but also help ensure smoother delivery of services across programs like CDBG and FHA. While the hearing did briefly touch on FHA-related delays in foreclosure and conveyance, there was little substantive discussion regarding the future of FHA or its current operational challenges.

2.Senate Confirmation Hearing: Andrew Hughes, HUD Deputy Secretary-Designate

On Thursday, the Senate Banking Committee held confirmation hearings for several nominees, including Andrew Hughes, who has been nominated as HUD’s Deputy Secretary. While most of the attention during the session was focused on Fed Vice Chair Michelle Bowman, Hughes was asked a key question regarding the possible closure of HUD field offices.

In response, Hughes confirmed that HUD is “looking at the issue.” Though the answer was vague, it raised eyebrows among stakeholders, particularly because of speculation that FHA Homeownership Centers could be included in any restructuring or downsizing efforts. That said, there were no objections or issues raised during the hearing that would appear to delay or derail Hughes’s confirmation.

3.Why It Matters

For brokers, loan officers, and lenders, these hearings—while largely procedural—suggest that meaningful changes could be on the horizon. HUD’s internal operations and funding structures are clearly under review, and while no new rules were proposed this week, the tone of the discussions indicates that reform may be coming.

Additionally, the call for IT upgrades at HUD could have a downstream impact on program timelines, system integrations, and accessibility—particularly for those relying on FHA systems and support. And if HUD does move forward with closing or consolidating field offices, the industry could see a shift in how regional training, responsiveness, and direct lender support are delivered.

4.Final Thoughts

While no immediate changes are expected, it’s clear that HUD is facing heightened scrutiny from both sides of the aisle. Industry professionals should stay alert to updates that may affect their operations—particularly if FHA infrastructure, staffing, or systems undergo reform. We’ll continue monitoring these developments and will provide further updates as more information becomes available.