Definition of Department of Housing and Urban Development (HUD):
HUD/FHA in Orange County, California:
Established in 1965, the Department of Housing and Urban Development (HUD) is a government agency that enforces fair housing laws and controls the Federal Housing Administration. The FHA is also one of the main insurer’s of non-conventional mortgage loans along with Fannie Mae and Freddie Mac. HUD issues documents that must be included in every real estate transaction in the US. For example, the HUD-1 settlement form is a vital document in the mortgage closing process – it must be sent out within 3-days of the borrower’s application with a lender along with the Good Faith Application (GFE), and application to sign and other pertinent disclosures. As part of the real estate transaction, it is prepared by the escrow company and the HUD-1 provides a detailed list of all the costs of the transaction for both the buyers and sellers.