Testimony: HUD Fails to Keep Up with Mortgage Apps
- May 31, 2011
May 31, 2011
By Allison Landa, News Editor
The National Multi Housing Council and National Apartment Association have told Congress that the U.S. Department of Housing and Urban Development is not keeping pace with the volume of multi-family mortgage applications, thereby causing economic consequences.
The agencies said those consequences include putting thousands of construction jobs in jeopardy along with reducing revenues that the program could be generating for the federal government. The remarks were delivered in testimony before a subcommittee of the House Financial Services Committee.
Peter Evans, a partner at real estate investment and sales firm Moran and Co. testified on behalf of the National Multi Housing Council and National Apartment Association, telling Congress that demand for apartment financing from the Federal Housing Administration has gone up five-fold from $2 billion annually to $10 billion.
He claimed that the Federal Housing Administration has been unable to keep pace with demand, with loan processing times now exceeding 18 to 24 months.