In Brief: Cuomo Announces FHA, Fair-Housing Initiatives

Last week was a busy one for Housing and Urban Development Secretary Andrew Cuomo.

On Tuesday he announced that the department's FHA mortgage-insurance program, which dates back to the 1930s, has entered the electronic age. FHA loans can now be approved through the automated loan origination system of another government-backed enterprise, Freddie Mac.

President Clinton's fiscal year 1999 budget contains a proposal to significantly expand the program, and Mr. Cuomo is spearheading the administration's campaign to rally congressional support for it.

On Thursday he announced that three mortgage lenders-Temple-Inland Mortgage Corp., Banc One Mortgage Corp., and Overton Bank and Trust-have agreed to make $1.369 billion in home loans to low- and moderate-income and minority families. The lenders will spend $6 million on programs to increase homeownership among these groups. Most of the money-$1.35 billion- will come from Temple-Inland and is said to be the largest commitment by any lender to fair-housing initiatives.

Mr. Cuomo is trying to get a 73% increase in funding for HUD's Office of Fair Housing and Equal Opportunity, which enforces the Fair Housing Act. If he gets it, the office would be authorized to spend $52 million in fiscal 1999.

On Friday, Mr. Cuomo met with 33 nonprofit and faith-based groups, including the National Council of Churches, Catholic Charities USA, and the Council of Jewish Federations, to urge them to form a partnership with his agency to revitalize communities, produce affordable housing, and reduce homelessness.

The meeting was held by HUD's new Center for Community and Interfaith Partnerships.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER