Key Highlights: U.S. Government Proposed Budget for Fiscal Year 2027

The Office of Management and Budget published the Proposed President’s Budget of the United States Government, Fiscal Year 2027 on April 3, 2026. This 92-page Budget was accompanied by multiple Fact Sheets. Padgett Law Group has prepared this high-level overview of notable items identified during our review. This summary is not comprehensive and does not cover the entirety of the Budget's contents. Therefore, you should not rely exclusively on this overview.

The sections below contain high-level excerpts copied directly from the Budget materials relevant to applicable Housing Agencies:

HUD:

“The Federal Housing Administration (FHA) provides mortgage insurance for the purchase, refinance and rehabilitation of single-family homes. FHA mortgage insurance is designed to encourage lenders to make credit available to first-time homebuyers and other borrowers who may not be adequately served by the conventional market. Historically, FHA has also provided countercyclical support in times of economic crisis. For budgetary purposes, the Mutual Mortgage Insurance (MMI) Fund is separated into two risk categories: forward loans and Home Equity Conversion Mortgages (HECMs). Forward programs guarantee loans for standard single-family purchases and refinances (Section 203(b) program), home improvements (Section 203(k) program) and condominiums. HECMs, also known as reverse mortgages, enable elderly homeowners to borrow against the equity in their homes without having to make repayments during their lifetime. The Budget requests $160 million in the MMI Program account for administrative expenses to support a range of FHA functions, such as loan underwriting and servicing, claims processing, and risk monitoring. The Budget also requests a limitation of $400 billion on loan guarantees for the MMI Fund. The Budget projects insurance of $284 billion and $15 billion for forward mortgages and HECMs, respectively, with additional commitment authority available in case these amounts are exceeded during execution.

The Budget does not provide funding for the Housing Counseling program, which supports: 1) comprehensive housing counseling services to eligible homebuyers, homeowners and tenants through grants, oversight, and technical assistance; and 2) training to housing counselors and staff of government and non-profit entities that participate in the program.”

GNMA:

“The Budget requests commitment authority for GNMA to guarantee $600 billion in new MBS and provides $56 million in spending authority from offsetting collections (Commitment and Multiclass Fees) for the salaries and expenses of GNMA.”

HUD OIG:

“The Office of Inspector General (OIG) provides independent and objective reviews of the integrity, efficiency, and effectiveness of HUD programs and operations. Through its oversight activities, the OIG seeks to promote efficiency and effectiveness, detect and deter fraud and abuse, address criminality in HUD programs, investigate allegations of misconduct by HUD employees, and review and make recommendations regarding existing and proposed legislation and regulations affecting HUD. The Budget requests $138 million for the OIG.”

CFPB:

“The Consumer Financial Protection Bureau (CFPB or Bureau) was established under Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Act) (P.L. 111–203) as an independent bureau in the Federal Reserve System. The Act consolidated authorities previously shared by seven Federal agencies under Federal consumer financial laws into the CFPB and provided the Bureau with additional authorities to conduct rulemaking, supervision, and enforcement. Funding required to support the CFPB's operations is obtained primarily through transfers from the Board of Governors of the Federal Reserve System. Pursuant to the Act, the CFPB is also authorized to collect civil penalties in any judicial or administrative action under Federal consumer financial laws. These amounts are maintained and displayed in a separate account titled "Consumer Financial Civil Penalty Fund. For 2027, this amount is based upon the full amount the CFPB is eligible to draw from the Federal Reserve under Dodd Frank, as amended by the One Big Beautiful Bill Act. The Bureau is currently under a court order that effectively requires it to draw the full amount available. If that order is lifted, the Bureau will reconsider the appropriate amount to draw to fulfill its statutory duties.

Obligations related to victim compensation are contingent upon identifying the specific victims qualifying for payments. To the extent that such victims cannot be located or such payments are otherwise not practicable, the Bureau may use such funds for the purpose of consumer education and financial literacy programs."

Veterans Housing Benefit Program Fund:

“For the cost of direct and guaranteed loans, such sums as may be necessary to carry out the program, as authorized by subchapters I through III of chapter 37 of title 38, United States Code: Provided, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974: Provided further, That, during fiscal year [2026] 2027, within the resources available, not to exceed $500,000 in gross obligations for direct loans are authorized for specially adapted housing loans.”

Government-Sponsored Enterprises:

“They are not included in the Federal Budget because they are private companies, and their securities are not backed by the full faith and credit of the Federal Government. However, because of their public purpose, statements of financial condition are presented, to the extent such information is available, on a basis that is as consistent as practicable with the basis for the budget data of Government agencies. —The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation provide assistance to the secondary market for residential mortgages.

• FNMA:   For the purposes of the Budget they are presented as direct loans for mortgage-backed securities. "Disbursements" and "Repayments" are budgetary terms. These items are reported by Fannie Mae as "Issuances" and "Liquidations," respectively.

• Freddie Mac engages primarily in two forms of business: guaranteeing residential mortgage securities and investing in portfolios of residential mortgages.”
  

Relevant Links: