Whose Risk is HUD, FHA Managing?

As noted in a long article in Sunday's Washington Post, critics are accusing Housing and Urban Development Secretary Alphonso Jackson, who is resigning in less than glorious circumstances, of being grossly inattentive to the looming housing crisis.

They contend, "Jackson ignored warnings from within his agency, … whose inspector general told Congress that some of the secretary's efforts were 'ill-advised policy' and likely to put more families at risk of losing their homes."

Of course, HUD denies this.

However, during Jackson's era, the story said, "... foreclosures for loans insured by HUD's Federal Housing Administration have risen and default rates have hit a record high."

As also noted in the Post article, FHA Commissioner Brian Montgomery, a former White House political aide with no previous housing experience, said, "It is beyond outrageous for anyone to suggest we would do anything to put FHA at unnecessary risk."

This must mean, I guess, that the increased risk of families losing their homes was a necessary HUD & FHA risk.

That's OK then.

In fact, it must be OK since Montgomery recently won the "annual Lenders One Hero for Housing Award for his efforts on behalf of American homeowners at a challenging time in the housing market."

Of course, one might ask if the award was really on behalf of American homeowners or the 100 plus mortgage bankers that make up Lenders One?