(Bloomberg) — The Trump administration is planning to lay off at least 40% of the workers at the federal agency that provides mortgage insurance on loans for people who otherwise wouldn’t qualify for one, according to two sources familiar with the agency’s plans.

Federal officials are preparing to cut employees at the Federal Housing Administration, the office that helps certain homebuyers secure a loan if they can’t afford a down payment or have below-average credit scores, the sources said. It also protects lenders against losses on those loans.

The FHA is one of the largest mortgage insurers in the world and has insured more than 40 million home loans since 1934, according to the agency’s website. The insurance is a key resource for many first-time buyers and low-income Americans, and can help protect lenders as well. That’s opened up more credit to buyers who might not normally be able to snag a home-purchase loan.

The Trump administration cut thousands of employees in recent days, after President Donald Trump directed agency heads to do so. He told officials to focus on firing workers who “perform functions not mandated by statute,” including “diversity, equity and inclusion programs.”

The FHA returns billions of dollars each year to the US Treasury through what is known as the negative credit subsidy. Congress does not appropriate funding to the FHA’s Mutual Mortgage Insurance Fund; instead, loans guaranteed by the agency generate a positive return for the fund. The MMI Fund grew from $145 billion to $173 billion in capital over the last fiscal year, with a capital ratio of 11.47%. One staffer described the agency as the goose that laid the golden egg.

“None of the functions that support FHA would work,” says Ethan Handelman, former HUD deputant assistant secretary for multifamily housing programs, referring to cuts planned across the department.

The US Department of Housing and Urban Development, the parent agency for the FHA, plans to discharge 50% of its workforce, Bloomberg Law previously reported.

Antonio Gaines, president of AFGE National Council 222, said Tuesday those cuts will also hit the FHA. AFGE National Council 222 is the union that represents more than 5,000 employees at HUD. The agency employs 9,600 people, according to its website. It’s unclear how many are detailed to FHA work.