David H. Stevens, president of Long & Foster, the Washington real estate firm, is expected to be selected tomorrow to run the Federal Housing Administration.James Hagerty & Ruth Simon:Though the Obama administration declined to confirm the appointment today, sources said Stevens has been undergoing the required background checks. These sources spoke on condition of anonymity because they did not have the administration's permission to speak publicly.
If confirmed by Congress, Stevens would be the only FHA commissioner in recent years with a strong background in single-family home mortgages. After more than two decades in the financial services industry, Stevens has overseen every aspect of home financing, from originating mortgages to selling them on the secondary market. That experience appealed to the administration, the sources said.
The Obama administration is expected to appoint David Stevens, a veteran mortgage executive, as head of the Federal Housing Administration at a time when that agency is taking a critical role in the ailing U.S. home mortgage market, according to people familiar with the plan.Melanie Roussell, a spokeswoman for the Department of Housing and Urban Development, which includes the FHA, declined to comment. The planned appointment was first reported Sunday evening by the Washington Post.
The FHA insures mortgage lenders against the risk of defaults on home mortgages and specializes in loans for people who can't afford sizable down payments. FHA-insured loans are available on loans with down payments as small as 3.5% of the home's value.
Because private mortgage insurers have raised their prices and shied away from riskier types of coverage amid huge losses, the FHA is taking on a huge share of the risk in the mortgage market. Its share of the U.S. mortgage market soared to nearly a third of loans originated in last year's fourth quarter from about 2% in 2006 as a whole, according to Inside Mortgage Finance, a trade publication.
Good for Dave. I hope he's paid all of his taxes!