This BLOG On HUD Secretary Ben Carson To Leave After First Term To Private Sector Was PUBLISHED On March 6th, 2019
HUD Secretary Ben Carson announced that he will be leaving The United States Department of Housing and Urban Development.
- HUD is the parent of the Federal Housing Administration
- HUD is in charge of FHA. FHA is not a lender
- FHA is a government agency that insures all FHA Loans to private lenders
- All lenders need to abide by HUD Guidelines in order for FHA to insure the FHA Loans originated and funded by lenders
- FHA will partially insure the loss sustained by borrowers who defaulted on their FHA Loans
- Due to this guarantee, lenders are able to lend FHA Loans which only require 580 credit scores and 3.5% down payment on home purchases
- HUD has very lenient mortgage guidelines for first time home buyers, buyers with bad credit, and borrowers with higher debt to income ratios
FHA Loans remain the most popular loans today in the United States.
Impact With FHA Loans After HUD Secretary Ben Carson Leaves HUD
News of HUD Secretary Ben Carson leaving his post as the Chief Executive of HUD has not impacted the housing and lending markets. It is up to President Donald Trump to seek a new candidate for this high-power position. HUD Secretary Ben Carson has been HUD’s Chief Executive Officer since 2016 and plans on finishing out his watch under President Trump’s first term. HUD Secretary Ben Carson told the Press that he is leaving HUD voluntary to seek a position in the private sector.
Secretary Carson issued the following statements:
- “I will certainly finish out this term…I would be interested in returning to the private sector because I think you have just as much influence, maybe more, there.”
HUD Secretary Ben Carson As CEO Of HUD
President Donald Trump nominated Ben Carson as HUD Secretary when he got elected the 45th President of the United States. Dr. Carson, a neurosurgeon by trade, was never in the housing sector. He had very little experience in housing and/or real estate. Many critics blasted Trump for selecting Dr. Carson due to his lack of experience in the housing sector. Supporters of President Trump supported the decision in Dr. Carson being named Housing and Urban Department Secretary due to promises of him bringing a new perspective to the giant agency. Like many Trump appointees, Ben Carson has not been without criticisms during his tenure as HUD Secretary. In 2018, Dr. Carson came under criticism due to the appointment of his son to be in charge of a “listening tour” in Baltimore. This was a federal ethics violation. A few months after this incident, a disgruntled former HUD employee alleged that Secretary Carson used taxpayer funds on very expensive office furniture for his office.
Criticisms Of HUD Secretary Ben Carson While In Office
HUD Secretary Ben Carson is a newcomer to government.
- He has been in the private sector all of his working career as a neurosurgeon
- Maybe he is not used to how nasty politics has been
- He is an award-winning pediatric neurosurgeon who has saved countless lives
- He is not a man who is used to criticisms and public attacks
- Democrats have proven to attack many Trump Allies like never before
- Secretary Carson was attacked by his critics for reducing HUD’s civil rights enforcement efforts and not enforcing fair housing laws that were implemented by Barack Obama’s Administration
- Maybe Dr. Carson was not expecting these nasty attacks
- He told the press that there were more complexities working as CEO of HUD than there was in brain surgery
- It seems all the drama has Carson reconsidering his foray into public office
It does not take a brain surgeon to figure out that it is due to this unnecessary drama for Dr. Carson leaving government service.
Will HUD Secretary Ben Carson Leaving After First Term Impact Home Buyers
Many experts do not expect any changes to home buyers with a new HUD Secretary. Under Secretary’s watch, FHA Loan Limits were increased three years in a row due to skyrocketing home prices. FHA MIP and down payment requirements remained the same at 1.75% upfront FHA MIP, 0.85% annual MIP, and 3.5% down payment. There were no major changes in HUD Guidelines. The last time new HUD Guidelines was implement was back in 2013, which was way before Carson’s tenure. Gustan Cho Associates at NEXA Mortgage, LLC are national direct lenders with no overlays on FHA Loans. We have zero overlays on FHA Loans. We just follow HUD 4000.1 Guidelines.
