Tariffs are/were a big enough hit to the US economy but the was just the first step. The second step is coming later this year. HUD has announced the end of housing subsidies in its 2025-12 letter. Covid housing relief policies are being sunsetted in the fall of 2025.
-Permanently sunsetting the COVID-19 Loss Mitigation Options on September 30, 2025;
-Moving up the effective date of the new permanent loss mitigation options to October 1, 2025 from February 2, 2026;
-Continuing the suspension of FHA-HAMP and sunsetting the program effective September 30, 2025;
-Extending the time on the eligibility of a borrower for a subsequent permanent loss mitigation option to once every 24 months, from once every 18 months; and
-Canceling the scheduled increases in borrower compensation under FHA’s Pre-foreclosure Sale Program, Deed-in-Lieu of Foreclosure disposition options, and Cash for Keys incentives, maintaining the current amounts.
250 page document: https://www.hud.gov/sites/default/files/OCHCO/documents/2025-12hsgml.pdf