After the stock market crash of October 29, 1929 and the Great Depression that followed, many homeowners lost their homes to foreclosure, due to lack of income and the hardships that were being endured. The period of economic uncertainty gave rise to the United States Department of Housing and Urban Development (HUD). HUD was created in 1965 when President Lyndon Johnson signed the Department of Housing and Urban Development Act to help ensure quality housing was available to all, including low-income residents. The program developed out of the roots of the Federal Housing Administration, and is a cabinet department of the US Government.
Congress passed Emergency Relief and Construction Act of 1932, creating the Reconstruction Finance Corporation (RFC), the starting point for HUD. This particular act authorized the RFC to make loans to private corporations providing housing for low-income families, but this had little to do with individual families also in need.
To further help correct the dire financial straits the United States was experiencing, an overhaul of the current economic and mortgage structure where necessary. At that time, it was common for homeowners to have multiple mortgages, high interest rates and large down payments to purchase and maintain a property. The National Housing Act of 1934 was passed, which greatly improved the financial prospects of many families managed by the Federal Housing Administration. In 1965, HUD absorbed this entity and grew even larger.
According to HUD, their modern day mission is "To promote adequate and affordable housing, economic opportunity, and a suitable living environment free from discrimination."
