Downsizing plans targeted at the Department of Housing and Urban Development, including the Federal Housing Administration, could impact the processing of mortgage insurance for single-family homes, affordable apartment buildings, hospitals and nursing facilities.
HUD field offices in 34 states, plus the District of Columbia, are slated to close, according to a Bloomberg report. Department employees and their union say this may run afoul of a federal law that requires the agency to maintain at least one field office in every state where staffers process applications for mortgage insurance.