2.7- What is Department of Housing and Urban Development (HUD)?

The Department of Housing and Urban Development (HUD) was established in 1965. The purpose of HUD is to provide housing and community development assistance and to assure everyone has access to Fair and Equal Housing. HUD is the primary Housing and Lending Regulatory Authority in the United States.

The predecessor of HUD was the Housing and Home Finance Agency, formed in 1947. The involvement of the Federal government in the housing industry however dates back to way before both the agencies came into being. For example, in 1918, the government financed homes built for World War 1 workers employed in Industries that contributed to the World War 1 efforts.

HUD is a cabinet-level department of the federal government responsible for overseeing programs that are concerned with housing needs and fair-housing opportunities, and with improving and developing the communities of the country. HUD is headed by the Secretary of Housing and Urban Development. 

The Department of Housing and Urban Development was initially established to provide financial incentives to renovate and build within certain areas after World War 2. Later, HUD expanded its influence over other areas of the Housing market.

FHA (Federal Housing Administration) loans are insured by the Department of Housing and Urban Development (HUD). When a loan is insured by HUD, it protects the lender fro incurring damages due to an FHA loan defaulting.

The Official website of HUD is