FHA To Lay Off 40% Of Workforce

The Federal Housing Administration (FHA) is preparing to lay off 40% of its workforce, as first reported by Bloomberg News, citing “two sources familiar with the agency’s plan.”

Secretary of the U.S. Department of Housing and Urban Development (HUD), Scott Turner, announced plans last week to cut half of HUD’s workforce in an effort to comply with President Trump’s Feb. 11 directive to prepare for mass layoffs across the federal government.

The directive specifically targets jobs that are “not mandated by statute” — a category that, according to the order, includes diversity, equity, and inclusion (DEI) programs.

As a mortgage insurer, the FHA expands access to borrowers with lower credit scores or down payment funds by protecting the lenders who underwrite those borrowers to government criteria.

HUD did not respond to NMP's request for comment.

FHA programs are administered by HUD. HUD employs roughly 9,600 people, meaning that cutting half its staff could lead to the permanent loss of entire programs.

An injunction issued by a federal judge last Friday halted plans to lay off as much as 95% of the workforce at the Consumer Financial Protection Bureau (CFPB).

A day earlier, a court filing was made on behalf of unions representing CFPB employees and others across the federal government that indicated mass firings at the CFPB were “imminent.”