Brian Montgomery
FHA cracks down on cash out refinancing


WASHINGTON — President Trump will nominate Federal Housing Administration Commissioner Brian Montgomery to serve as the deputy secretary of the Department of Housing and Urban Development, a position he has held on an acting basis since January.

Pam Patenaude, the former No. 2 at HUD, stepped down in January to return to private life in New Hampshire with her husband after a 35-year career in housing. As deputy secretary, Patenaude led the department’s disaster recovery response following a series of destructive hurricanes and wildfires.

Montgomery was confirmed by the Senate to the position of FHA commissioner in May 2018. It is his second stint leading the agency after having filled the same role in the George W. Bush administration. Since resuming the role, he has worked to stabilize the agency’s reverse mortgage program and imposed new restrictions on cash-out refinancing in order to mitigate risk to the FHA’s Mutual Mortgage Insurance Fund.

“Mr. Montgomery brings to HUD a deep knowledge of housing issues and vast experience spearheading large-scale policy initiatives,” the White House said in a statement Monday.

Brian Montgomery was confirmed by the Senate to the position of FHA commissioner in May 2018. It is his second stint leading the agency after having filled the same role in the George W. Bush administration.

Bloomberg News

The Mortgage Bankers Association applauded Montgomery’s nomination, saying that he has been “integral in developing policies that improve opportunities for homebuyers and renters.”

“With his expertise and knowledge of the housing industry, we are confident that Brian will do an excellent job serving alongside Secretary Carson and other members of the Administration,” Robert Broeksmit, the mortgage bankers group’s president and CEO, said in a statement.

Montgomery will have to be confirmed by the Senate as deputy secretary of HUD before he can officially take on the role.

Trump originally nominated Montgomery to serve as FHA commissioner in September 2017, but his nomination remained in limbo for five months until he was confirmed.



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