Second FHA tour would be much different for Montgomery
By Brian Collins
For Brian Montgomery, his second tour of duty at the Federal Housing Administration is likely to be substantially different than his first. Nominated last week as FHA commissioner, Montgomery served in that role during the George W. Bush administration, when FHA’s single-family program was in dire straits and the financial crisis helped bankrupt its mortgage fund. …Basil Petrou, managing partner at Federal Financial Analytics, noted that it has been almost 10 years since the housing crisis. “After the long recovery, lenders and the secondary market agencies are loosening their lending standards again,” he said. The housing market moves in cycles and Montgomery should be “concerned about reducing mortgage insurance premiums at the wrong time,” Petrou said, “which could lead to losses down the road.”