HUD chief named, to mixed reviews

WASHINGTON – President Bush on Friday named Steven Preston as his new secretary of Housing and Urban Development, installing a well-regarded corporate and government administrator – yet one with little experience in housing issues – as his point person in dealing with the consequences of the subprime mortgage meltdown.

For the past 18 months, Preston has headed the Small Business Administration, where he upgraded an agency that had been criticized for its response to Hurricane Katrina. He came to government from a career in the private sector, most recently as executive vice president of ServiceMaster, the large home-cleaning and pest-control company.

Preston, 47, will replace Alphonso Jackson, who resigned last month amid allegations of favoritism in his dealings with a Philadelphia developer.

If confirmed by the Senate, Preston would take over a $38 billion agency that has been a key player in the administration’s response to the mortgage crisis. A debate has raged in Washington in recent months over how aggressive the government should be in helping borrowers saddled with high-rate loans refinance their mortgages and prevent foreclosures.

The selection of Preston drew a mixed response. Those who have worked with him on small-business issues appeared impressed, with Sen. John Kerry, D-Mass., who chairs the Small Business Committee, declaring himself “sorry to see him go” from the Small Business Administration. “Mr. Preston inherited an agency in disarray, and he’s worked hard to right its course,” Kerry said.

But consumer advocates and some other housing experts appeared surprised by the selection. Howard Glaser, a consultant and former HUD official in the Clinton administration, predicted Preston would be a “caretaker” until the next administration arrives.

“Installing someone at HUD who continues to have no expertise in housing is a major flaw,” he said.