U.S. Housing and Urban Development nominee promises to work hard

By Jesse Holland, The Associated Press

WASHINGTON - The man U.S. President George W. Bush chose to head the Department of Housing and Urban Development assured senators Thursday that he'll use his limited time there to help solve the housing crisis.

"I'm a firm believer that we can get a lot done in eight months," Steven Preston told the Senate Banking, Housing and Urban Affairs Committee.

Preston, currently head of the Small Business Administration, was nominated to replace former HUD Secretary Alphonso Jackson, who resigned in March amid a criminal investigation and allegations of political favouritism.

Bush's term ends in January, and his Cabinet secretaries likely will leave with him.

"If confirmed, you will only be in office a short time," committee chairman Christopher Dodd noted. "But I urge that your first order of business be to begin to clean up and restore confidence in HUD among employees and the American public."

Preston also will be at the centre of effects to help Americans fight record high foreclosures. Rising interest rates and the collapse of the once high-flying housing market have made it impossible for some to afford their monthly mortgage payments or sell their homes.

The committee just approved legislation that would give cheaper, government-backed mortgages to as many as 500,000 strapped borrowers. The bill also tightens regulation of government-sponsored mortgage giants Fannie Mae and Freddie Mac, which would finance a new affordable housing fund that would temporarily be used to pay for the homeowner rescue.

"I believe you could be the linchpin in dealing with a lot of this mortgage mess," said Sen. Richard Shelby of Alabama, ranking Republican on the committee.

"If I'm confirmed, I'm going to be at the table working collaboratively with you all," Preston said.

Preston has a background of 25 years in financial and operational leadership positions. Before joining SBA, he was executive vice president of The ServiceMaster Co., where he also served as chief financial officer. Before that, he was a senior vice president and treasurer of First Data Corp. and an investment banker at Lehman Brothers.

Preston was sworn in as head of SBA in July 2006, after his nomination was unanimously confirmed by the Senate.

Dodd said they would try to move Preston's nomination forward "as quickly as we can."