EXCLUSIVE: Outgoing FHA Director Says Slashing Red Tape Is Key To Solving Housing Crisis, Not More Subsidies

Frank Cassidy, the outgoing Federal Housing Administration (FHA) commissioner, stated this week that reducing regulatory "red tape" is more crucial for resolving the housing crisis than increasing subsidies. Cassidy, who resigned from his position within the U.S. Department of Housing and Urban Development (HUD), emphasized in a videoconference interview with Realtor.com® that the nation must prioritize building homes at scale to overcome its housing shortage. He supports President Donald Trump's initiatives aimed at improving housing affordability, provided they are coupled with a strong mandate for construction. Cassidy previously led HUD's Office of Housing, managing the FHA's mortgage insurance programs for single-family, multifamily, and healthcare properties, which collectively support a $1.9 trillion active insurance portfolio. A White House report earlier this year projected a need for 10 million new homes in the United States. While the Trump administration has targeted environmental regulations, Cassidy highlighted the need to also address local restrictions that impede homebuilding, asserting, "You can't regulate your way out of a housing crisis. You need to build your way out of it." Cassidy, who had a career in real estate finance with firms like Walker & Dunlop and Newmark, served as FHA director on an interim basis starting in April 2025 before his Senate confirmation late last year. He plans to return to the private sector after his tenure in Washington, during which he focused on enhancing the lending environment and bolstering the FHA's financial standing, including strengthening the capital ratio of the Mutual Mortgage Insurance Fund.