A recent Senate Banking Committee hearing spotlighted growing concern over the Department of Housing and Urban Development’s (HUD) workforce reductions and their potential effect on housing access. The session, as reported by Scotsman Guide on October 31 2025, featured testimony from nominees Frank Cassidy and Joseph Gormley, who have been tapped to lead the Federal Housing Administration (FHA) and Ginnie Mae, respectively.
Scrutiny of HUD Workforce Reductions
During the hearing, Senator Tina Smith (D-Minn.) questioned Cassidy about HUD’s October reduction-in-force that cut more than 400 positions, including employees from the Office of Housing Counseling. Smith said the layoffs represented “a huge impact.” Cassidy responded that he could not discuss the matter due to ongoing litigation but emphasized that “housing is very much a local issue,” adding that HUD works with “local leaders on the ground, nonprofits [who] understand the issues that work in their jurisdiction,” according to Scotsman Guide.
Cassidy and Gormley Emphasize Leadership Continuity
Cassidy, currently serving as Principal Deputy Assistant Secretary overseeing the FHA’s approximately $1.75 trillion mortgage-insurance portfolio, outlined his background in multifamily, senior-housing, and health-care financing. Gormley, nominated to lead Ginnie Mae, pledged in his statement to “draw on all his experience … to ensure the organization fulfills its mission of providing low-cost financing and ultimately making the American Dream of homeownership more accessible and affordable for the American people.” Following his remarks, senators did not ask Gormley any direct questions (Scotsman Guide).
Industry Groups Call for Swift Confirmation
Industry leaders voiced public support for both nominees. Steve Irwin, president of the National Reverse Lenders Association, wrote that the two positions “form the backbone of the federal housing finance architecture that supports the financial well-being of millions of older Americans.” Buddy Hughes, chair of the National Association of Home Builders, described Cassidy’s real-estate-finance experience as “strong” and called Gormley “the ideal candidate to lead Ginnie Mae and maintain confidence and liquidity in the secondary mortgage market,” Scotsman Guide reported.
Policy Implications for Housing Access
The hearing underscored how HUD’s staffing changes intersect with the agency’s housing-access mission. While litigation prevents discussion of the layoffs’ details, senators made clear that the department’s reduced workforce has raised congressional concern about capacity. The confirmation of Cassidy and Gormley will likely determine near-term stability at two major federal housing-finance agencies and shape HUD’s ability to carry out its programs.
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