HUD Chief Is Optimistic on Housing Accord

Wall Street Journal (06/26/08) P. A3; Paletta, Damian
HUD Secretary Steve Preston is confident that the Bush administration and Congress could forge an agreement with regard to legislation intended to bolster the mortgage and housing markets. While the Bush administration supports efforts to revamp oversight of Fannie Mae and Freddie Mac, it has expressed concern about a provision that would earmark $4 billion for the purchase of foreclosed properties by local governments. Additionally, Preston says the White House remains concerned about Congress failing to allow HUD to impose risk-based premiums for the FHA loan program. Some Democrats worry that risk-based pricing would prevent lower-income borrowers from obtaining FHA mortgages, but Preston insists all homeowners would pay higher fees if risk-based pricing is not permitted.