Congress takes a bite out of housing agency budgets
Gives HUD $687 million less
A proposed $1 trillion congressional spending bill means less money for key housing agencies, analysts claim.
Congress released its proposed spending bill for this week, showing a proposed $1.012 trillion in spending for fiscal 2014. Unfortunately, the Department of Housing and Urban Development is one of the losers with $32.8 billion in allocated funding — a $687 million reduction when compared to 2013 budget levels.
"The bulk of the spending cuts are localized in programs supporting community planning and development programs," analysts with Compass Point Research & Trading Group pointed out.
Additionally, the Federal Housing Administration received $45 million of funding to support housing counseling efforts.
"We continue to believe that there is a conversation in D.C. regarding the merits of lowering mortgage insurance premiums (MIPs) if certain borrowers attend housing counseling," the report explained.
If there is a change in the MIPs, it would directly impact borrower pricing decisions, Compass Point said.
Congress will pass a short continuing resolution to avoid a Jan. 15 deadline, but is expected to pass the broader budget measure by the end of this week.