The Department of Housing and Urban Development (HUD) was created to:

• A. to stabilize the nation's mortgage markets and expand opportunities for home ownership and affordable rental housing.
• B. to regulate mortgage rates for banks.
• C. to insure all private loans.
• D. to fund only first-time buyer programs.

Answer: (A)

The main idea this question tests is HUD’s purpose in promoting housing and urban development by supporting stable access to mortgages and expanding opportunities for homeownership and affordable rental housing. HUD was created to bring together federal housing programs under one roof and to focus on reducing barriers to safe, decent housing, including mortgage insurance through the FHA to help stabilize lending and make homeownership and affordable rentals more accessible. The other options don’t fit because HUD doesn’t regulate mortgage rates for banks—that’s monetary policy—nor does it insure all private loans, since FHA insurance covers specific eligible loans. And HUD’s mission goes beyond first-time buyers to include public housing, rental assistance, and broader community development initiatives.