HUD Chief Nominated

President Bush today nominated Steve Preston for the Secretary of the U.S. Department of Housing and Urban Development, according to a White House statement. Preston has served as the Administrator of the Small Business Administration since being confirmed in July 2006.

Before his SBA stint, Preston reportedly held senior executive posts at two multi-billion dollar corporations and the financial service industries. He worked at the ServiceMaster Co. beginning in 1997 and worked at First Data Corp. and Lehman Brothers prior to that.Preston graduated from Northwestern University in 1982 with a bachelor’s degree. He obtained a masters of business administration at the University of Chicago in 1985. The administration touted Preston’s success in improving efficiency at SBA and managing loan guarantee programs similar to HUD programs. Since he took over at that agency, “lenders have products that are easier to use … and small businesses have broad access to the federal contracts and educational resources they need to grow and succeed.”

HUD photo of Steve Preston

Preston, who will likely be replaced following the inauguration of a new U.S. president in January, will help HUD strengthen partnerships with faith-based and community organizations, the White House statement said.“The Department requires strong leadership at a time when our housing market is experiencing a period of challenge and uncertainty,” Bush said according to a transcript of his press briefing today. “In seeking to fill this important Cabinet post I looked for a leader with an impressive background in finance; someone who understands the important role the housing market plays in the broader economy. I sought a reformer who would act aggressively to help Americans obtain affordable mortgages, and I sought a — and be able to keep their homes. I sought a consensus-builder who’s earned the respect of Republicans and Democrats, who can get things done.”

Bush noted Deputy Secretary Roy Bernardi is serving as acting HUD secretary following the resignation of Alphonso Jackson.

The White House cited several favorable quotes from 2006 and 2007 about the HUD nominee.

Sen. John Kerry, the Democrat who ran against Bush in the last presidential election, issued a statement complimenting the SBA chief and indicating he’ll be sorry to see Preston leave the SBA.

“Mr. Preston inherited an agency in disarray, and he’s worked hard to right its course and to improve relationships with Congress,” Kerry stated. “We may have some differences on policy, but he’s always been professional, responsive, and dedicated to the mission.”

“Preston is a reformer who will act aggressively to help struggling Americans obtain affordable mortgages and keep their homes,” the White House statement said. “Preston will work to address the Nation’s housing challenges and will work with Members of Congress to advance responsible legislation to help American homeowners.”

The Mortgage Bankers Association commended Bush on moving quickly to fill the vacant spot.

“Preston will have a number of important projects to complete at HUD,” MBA Chairman Kieran P. Quinn said in a statement. “We look forward to working with him on efforts to stabilize the housing market and help at-risk borrowers.”

Preston, speaking the president’s press briefing, noted he hopes to help restore stability and confidence in the housing market.

“We need to have a market to operate fairly and effectively,” Preston stated. “Our solutions must restore confidence in our markets, while not erecting barriers to future entrepreneurs, investors and home buyers.”