FHA Will Seek to Boost Market Share

HUD Secretary Alphonso Jackson says the new Federal Housing Administration commissioner will be charged with increasing the FHA's share of the mortgage market, which has declined over the years to 3.5% as of year-end 2004."I expect him to work with the mortgage bankers, homebuilders, homeowner associations" and others to develop a strategy to "get our share of the market back rather than abrogating it to subprime lenders," the secretary of the Department of Housing and Urban Development said in response to a question at an industry conference. President Bush has indicated that he intends to nominate Brian D. Montgomery, a White House political operative, to be the new FHA commissioner, replacing Commissioner John Weicher, who is expected to step down by the end of April. "I think you will be able to work with him," the secretary told the Mortgage Bankers Association Washington conference. "I think we can come up with very innovative ways to capture back the market."