Frank Cassidy, the acting Federal Housing Association commissioner, has apparently been nominated for the job on a full-time basis.
The Mortgage Bankers Association put out a statement on Aug. 2 in support of Cassidy's appointment. His
National Mortgage News reached out to HUD for a comment. The permanent post has been vacant since
The post is distinct from the title Bill Pulte has chosen for himself
Much of Cassidy's prior experience is on the multifamily side of the business, including working for
From 2016 to 2019, Cassidy was a vice president at Newmark Knight Frank and its forerunner Berkeley Point Capital. He joined that company after it acquired the multifamily housing and healthcare finance origination platform of Oppenheimer & Co.
"MBA enthusiastically supports the Trump administration's nomination of Frank Cassidy to serve as Assistant Secretary of Housing and FHA Commissioner," Bob Broeksmit, president and CEO, said in the statement. "His extensive experience in real estate finance at Walker & Dunlop, Newmark, and Oppenheimer & Co. Inc. provides him with compelling insights on how to make FHA's single-family and multifamily programs less costly and more innovative and competitive."
Market share of FHA versus private mortgage insurance
Cassidy's appointment comes at a time when year-over-year insurance-in-force growth at the FHA has outpaced that of the private mortgage insurers for eight consecutive quarters, through the first three months of this year, a July 15 report from Keefe, Bruyette & Woods noted. This trend is likely to continue. This report followed one from two weeks earlier where KBW
"Our PMI industry IIF forecast (reflected in our MI models) projects IIF growth of+2%/+3%/+3% in 2025E/2026E/2027E (compared to +8.1/+2.9%/+1.9% in 2022/2023/2024) as we expect FHA growth to outpace PMI growth in a higher for longer environment as FHA volume continues to benefit from affordability related factors such as more volume from some large builders and GSE-to-FHA cash-out refinance debt consolidation volume," wrote KBW analyst Bose George.
The balance between the government product and the private sector has been shifting back towards FHA in recent quarters. All of the MIs (including books of business at the two remaining companies in run-off) have a combined 51.2% market share at the end of the first quarter, which was down 390 basis points from its peak during the third quarter of 2022, KBW noted.
Industry reaction to Cassidy's appointment
"We will work with him, Department of Housing and Urban Development Secretary Scott Turner, and HUD staff on continuing the meaningful reforms that boost housing supply, make owning and renting a home more affordable, and address the challenges and opportunities within the agency, including modernizing FHA's IT systems and processes," the MBA statement said.
The Community Home Lenders of America also expressed support for Cassidy's nomination.
The organization, which represents small and midsized independent mortgage bankers "believes he is an ideal person to be FHA Commissioner.
"Mr. Cassidy brings a strong business background in mortgage banking to the job, and has already hit the ground running, making changes to streamline the FHA underwriting and appraisal processes," the CHLA statement said.
The Broker Action Coalition also congratulated Cassidy on his nomination
"While we haven't had the opportunity to meet him yet, those we trust speak highly of him and his team," the BAC statement said. "We look forward to working together to strengthen the FHA home loan program to address the housing crisis facing our country."
The National Association of Mortgage Brokers also "strongly supports" the nomination, a statement from the group said.
"With his longstanding and distinguished career in real estate finance Mr. Cassidy offers deep industry insights and proven leadership," NAMB said. His expertise positions him to enhance the FHA's single-family and multifamily programs, making them more efficient, innovative, and competitive in today's dynamic housing market for homebuyers."
The group representing the MI industry, the U.S. Mortgage Insurers, also noted Cassidy's qualifications for the job.
"Cassidy's extensive background in real estate and housing finance will position him to make an immediate and positive impact at FHA and for the borrowers the agency serves, USMI President Seth Appleton said in a statement. "Upon confirmation by the U.S. Senate, we look forward to working with Frank Cassidy on a coordinated housing finance policy to facilitate access to affordable and sustainable mortgage financing for working class families across the country while promoting safety and soundness in the U.S. housing finance system."
