HUD Secretary Alphonso Jackson Asleep At The Wheel

From the Washington Post, a report on incompetence and cronyism at the government agency:

HUD Secretary Alphonso Jackson, left, with President Bush and Treasury Secretary Henry M. Paulson. Zealous about Bush's goal of increasing homeownership, Jackson encouraged policies that threatened to worsen the mortgage crisis, housing experts said. He is also under investigation for alleged cronyism.

HUD Secretary Alphonso Jackson, left, with President Bush and Treasury Secretary Henry M. Paulson. Zealous about Bush’s goal of increasing homeownership, Jackson encouraged policies that threatened to worsen the mortgage crisis, housing experts said. He is also under investigation for alleged cronyism. (By Ron Edmonds — Associated Press)

In late 2006, as economists warned of an imminent housing market collapse, housing Secretary Alphonso Jackson repeatedly insisted that the mounting wave of mortgage failures was a short-term "correction."

He pushed for legislation that would make it easier for federally backed lenders to make mortgage loans to risky borrowers who put less money down. He issued a rule that was criticized by law enforcement authorities because it could increase the difficulty of detecting and proving mortgage fraud.

As Jackson leaves office this week, much of the attention on his tenure has been focused on investigations into whether his agency directed housing contracts to his friends and political allies. But critics say an equally significant legacy of his four years as the nation’s top housing officer was gross inattention to the looming housing crisis.

They contend that Jackson ignored warnings from within his agency, the Department of Housing and Urban Development, whose inspector general told Congress that some of the secretary’s efforts were "ill-advised policy" and likely to put more families at risk of losing their homes.

During Jackson’s years on the job, foreclosures for loans insured by HUD’s Federal Housing Administration (FHA) have risen and default rates have hit a record high.

All the while, Jackson enjoyed a chef and a full-time security detail that trailed him to Washington social events. His office launched a new $7 million auditorium and cafeteria at HUD’s headquarters, money that some within the agency believed should have been directed toward housing for the poor. His office solicited an emergency bid to obtain oil portraits of Jackson and four other HUD secretaries at a cost to taxpayers of $100,000.

Jackson, who declined to be interviewed, will be remembered as a Cabinet secretary so committed to carrying out President Bush‘s goal of increasing homeownership that he encouraged policies that threatened to exacerbate the mortgage crisis, according to interviews with more than 30 current and former HUD officials and housing experts, and a review of numerous HUD documents and audits.

In speeches, he urged loosening some rules to spur more home buying and borrowing. "I’m convinced this spring we will see the market again begin to soar," Jackson said in a June 2007 speech at the National Press Club to kick off what HUD dubbed "National Homeownership Month." He also told the audience that he had no specific laws to recommend to prevent a repeat of the lending abuses that caused the mortgage crisis.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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