HUD Secretary Backs FHA Nominee

Housing Secretary Shaun Donavan is urging quick confirmation of David Stevens, whose nomination to be the new Federal Housing Administration commissioner is being held up in the Senate. "There is no one better qualified to lead FHA at this time than Dave Stevens. He is someone who has broad experience ranging from mortgage origination to secondary markets to managing a national real estate firm," the secretary told a Mortgage Bankers Association conference in Washington. "We will work closely together — should he be confirmed — to diagnose and address the challenges now facing FHA," the secretary said. Mr. Stevens is a former Freddie Mac and Wells Fargo Home Mortgage executive who most recently served as president and chief executive of Long & Foster's mortgage, insurance and title affiliates. The Senate Banking Committee is looking into allegations raised in a Real Estate Settlement Procedures Act-related lawsuit that cites a memo Mr. Stevens authored urging Long & Foster's Realty agents to refer their clients to the company's mortgage affiliate. HUD reviewed the memo 18 months ago, according to HUD spokeswoman Melanie Roussell. "At that time, HUD determined the memo did not violate RESPA and there was no basis for legal action," she said.