What is HUD and What Does It Do?
HUD is the term used to describe the United States Department of Housing and Urban Development, a federal department tasked with creating decent housing for citizens. The government agency was founded in 1965 to support community development and home ownership. To accomplish this goal, HUD enforces the fair housing act and improves affordable housing opportunities for all through various means including calculating Area Median Incomes to determine areas that qualify for federal housing programs.
Under HUD is the Federal Housing Administration (FHA), which sets standards for construction and underwriting. The FHA also insures loans made by banks and other private lenders for home building.