Brian D. Montgomery - Federal Housing Commissioner

Federal Housing Commissioner

One of Brian Montgomery's primary initiatives since becoming Federal Housing Commissioner has been the creation and promotion of a bill designed to modernize the Federal Housing Administration. The Modernization Bill, which passed the House of Representatives in July 2006, is primarily focused on increasing borrower flexibility through both policy and programmatic changes. Included among them are increased loan limits, updated down payment assistance options, and a risk-based premium structure. The goal of the Modernization Bill was to provide low and moderate-income borrowers a safe homeownership option at a fair price.

Another one of Assistant Secretary Montgomery's priorities while at the Department of Housing and Urban Development was the preservation of affordable multifamily rental housing, achieved primarily through mortgage insurance as well as flexible refinancing options. During Assistant Secretary Montgomery's tenure, HUD went to great lengths to get legislation passed in the House of Representatives that would preserve more than 900 apartment complexes, allowing for 87,000 additional units of affordable housing.

Brian Montgomery's time at the Department of Housing and Urban Development has also been marked by extensive work with Hurricane Katrina disaster victims. He chaired the Department of Housing and Urban Development's Hurricane Recovery and Response Center at Headquarters and helped coordinate and secure temporary and long-term housing for displaced persons.

During Brian Montgomery's tenure as Federal Housing Commissioner, the Department of Housing and Urban Development also launched a campaign meant to educate African-Americans looking to buy their first homes. He was interviewed by National Public Radio on the subject.

Secretary Montgomery is the 2008 recipient of the Robert J. Corletta Award for Achievement in Affordable Housing. The Corletta Award, presented annually by the National Association of Home Builders (NAHB) and the Neighborhood Development Collaborative (NDC), pays tribute to individuals who have shown extraordinary creativity and dedication to the cause of affordable housing.

In bestowing the award to the Commissioner, the housing groups cited in particular his efforts to keep FHA programs viable for the production and rehabilitation of rental apartments that low and moderate income households can afford.

"Given the current difficulties in the mortgage markets, FHA programs are more important than ever, and Brian has played a critical role in ensuring that these programs support the creation of affordable housing for America's working families," said Bob Nielsen, NAHB vice president/secretary and a home builder from Reno, Nev. Nielsen presented the award to the commissioner during NAHB's Spring Board of Directors' Meeting held here last week.

Nielsen noted that the Commissioner listened to the concerns of NAHB and other industry groups when the Administration last year proposed increasing the mortgage insurance premiums on certain FHA programs—Sec. 221(d)(4) and others—by as much as 16 basis points. After reviewing NAHB's economic data and analysis showing the tremendous effects such a dramatic increase would have on the renters in those programs—overwhelmingly those with incomes at 60 to 80 percent of an area's median—the Commissioner supported holding the line on those premiums. In January, HUD announced that it would not implement the increase.

"Brian Montgomery's support on this critical issue is right in line with the legacy of Bob Corletta, who believed that all citizens, whatever their financial circumstances, deserve a home that is affordable, safe, and desirable," said David P. Cole, Chief Operating Officer of NDC.

Given jointly by NAHB and NDC, the award is named in honor of Robert J. Corletta, long-time executive director of multifamily operations at NAHB before his death in 1998. Corletta was recognized by his peers as a visionary in the affordable housing industry, particularly for his efforts supporting congressional passage of the Community Reinvestment Act.