Frank Cassidy, the appearing Federal Housing Association commissioner, has apparently been nominated for the job on a full-time foundation.
The Mortgage Bankers Association put out an announcement on Aug. 2 in assist of Cassidy’s appointment. His present title at HUD is principal deputy assistant secretary, and he was nominated to the place by the Trump Administration in April.
National Mortgage News reached out to HUD for a remark. The everlasting submit has been vacant since Julia Gordon left on the finish of the Biden Administration.
The submit is distinct from the title Bill Pulte has chosen for himself as U.S. Federal Housing FHFA director.
Much of Cassidy’s prior expertise is on the multifamily aspect of the enterprise, together with working for Walker & Dunlop for over 5 years, the final one as senior managing director.
From 2016 to 2019, Cassidy was a vp at Newmark Knight Frank and its forerunner Berkeley Point Capital. He joined that firm after it acquired the multifamily housing and healthcare finance origination platform of Oppenheimer & Co.
“MBA enthusiastically helps the Trump administration’s nomination of Frank Cassidy to serve as Assistant Secretary of Housing and FHA Commissioner,” Bob Broeksmit, president and CEO, stated within the assertion. “His in depth expertise in actual property finance at Walker & Dunlop, Newmark, and Oppenheimer & Co. Inc. gives him with compelling insights on easy methods to make FHA’s single-family and multifamily packages more cost effective and extra modern and aggressive.”
Market share of FHA versus non-public mortgage insurance coverage
Cassidy’s appointment comes at a time when year-over-year insurance-in-force progress on the FHA has outpaced that of the non-public mortgage insurers for eight consecutive quarters, via the primary three months of this 12 months, a July 15 report from Keefe, Bruyette & Woods famous. This development is prone to proceed. This report adopted one from two weeks earlier the place KBW reduce the inventory rankings on a trio of MI firms.
“Our PMI trade IIF forecast (mirrored in our MI fashions) tasks IIF progress of+2%/+3%/+3% in 2025E/2026E/2027E (in comparison with +8.1/+2.9%/+1.9% in 2022/2023/2024) as we count on FHA progress to outpace PMI progress in a better for longer surroundings as FHA quantity continues to learn from affordability associated components such as extra quantity from some giant builders and GSE-to-FHA cash-out refinance debt consolidation quantity,” wrote KBW analyst Bose George.
The steadiness between the federal government product and the non-public sector has been shifting again in direction of FHA in latest quarters. All of the MIs (together with books of enterprise on the two remaining firms in run-off) have a mixed 51.2% market share on the finish of the primary quarter, which was down 390 foundation factors from its peak throughout the third quarter of 2022, KBW famous.
Industry response to Cassidy’s appointment
“We will work with him, Department of Housing and Urban Development Secretary Scott Turner, and HUD employees on persevering with the significant reforms that increase housing provide, make proudly owning and renting a house extra reasonably priced, and deal with the challenges and alternatives throughout the company, together with modernizing FHA’s IT techniques and processes,” the MBA assertion stated.
The Community Home Lenders of America additionally expressed assist for Cassidy’s nomination.
The group, which represents small and midsized unbiased mortgage bankers “believes he is a perfect particular person to be FHA Commissioner.
“Mr. Cassidy brings a robust enterprise background in mortgage banking to the job, and has already hit the bottom operating, making modifications to streamline the FHA underwriting and appraisal processes,” the CHLA assertion stated.
The Broker Action Coalition additionally congratulated Cassidy on his nomination
“While we’ve not had the chance to fulfill him but, these we belief converse extremely of him and his workforce,” the BAC assertion stated. “We look ahead to working collectively to strengthen the FHA house mortgage program to handle the housing disaster going through our nation.”
The National Association of Mortgage Brokers additionally “strongly helps” the nomination, an announcement from the group stated.
“With his longstanding and distinguished profession in actual property finance Mr. Cassidy gives deep trade insights and confirmed management,” NAMB stated. His experience positions him to boost the FHA’s single-family and multifamily packages, making them extra environment friendly, modern, and aggressive in at this time’s dynamic housing marketplace for homebuyers.”
The group representing the MI trade, the U.S. Mortgage Insurers, additionally famous Cassidy’s {qualifications} for the job.
“Cassidy’s in depth background in actual property and housing finance will place him to make a right away and constructive impression at FHA and for the debtors the company serves, USMI President Seth Appleton stated in an announcement. “Upon affirmation by the U.S. Senate, we look ahead to working with Frank Cassidy on a coordinated housing finance coverage to facilitate entry to reasonably priced and sustainable mortgage financing for working class households throughout the nation whereas selling security and soundness within the U.S. housing finance system.”
