The National Democratic Alliance government's move assumes significance as there is a shortage of 14.67 million rural houses and 8.23 million urban houses. The National Housing Bank (NHB) Act has been amended for strengthening the control of NHB on the housing finance companies with a view to "safeguarding the interest of depositors and promote healthy growth of housing finance sector."

The list of 29 housing finance companies which received the government approval include Andhra Bank Housing Finance, BOB Housing Finance, Can Fin Homes, Cent Bank Homes Finance, Corpbank Homes, Dewan Housing Finance Corp, GIC Housing Finance, GRUH Finance, GLFL Housing Finance, Global Housing Finance Corp, Happy Home Profin, Housing Development and Finance Corporation, Housing and Urban Development Corporation (Hudco), Hometrust Housing Finance, IndBank Housing, LIC Housing Finance, Livewell Home Finance, Maharashi Housing Development Finance Corp, National Trust Housing Finance, Orissa Rural Housing and Development Corpo, Parashwanath Housing Finance Corp, PNB Housing Finance, Peerless Abasan Finance, SBI Home Finance, Saya Housing Finance, Vyasa Bank Housing Finance, Vijaya Home Loans, VI Bank Housing Finance and Weizmann Homes.

In a related development, the Centre has asked the state governments to review repayment of various dues to the state-run HUDCO to avoid the latter's loaning operations. The centre has made it clear that the states will lose the opportunity to avail of more loans from HUDCO unless the dues are paid on schedule. Top sources told The Financial Express that though the recovery rate of HUDCO loans has been good, there are defaults by borrowing agencies.