Should FHA, Ginnie Be Spun Off From HUD?

Assistant Housing Secretary Brian Montgomery said Tuesday that the Federal Housing Administration and Ginnie Mae should be spun off as independent federal agencies and run like a business. Speaking at a Federal Deposit Insurance Corp. summit on mortgages, Mr. Montgomery -- who noted that he has six months left in office -- said he is very concerned about the ability of the FHA and Ginnie Mae to retain high-quality employees, especially now that the FHA's insurance applications are booming. "We need to operate as a business," he said. "We're concerned about maintaining staff. Our volume has picked up significantly." Currently, the FHA and Ginnie Mae are part of the Department of Housing and Urban Development, a cabinet-level agency whose chief is handpicked by the president.