The U.S. Senate today confirmed San Antonio Mayor Julian Castro as the new secretary of the Department of Housing and Urban Development, a move the Mortgage Bankers Association says will help the administration address housing policy issues.
Castro replaces former HUD Secretary Shaun Donovan, who held the position for more than five years before being nominated to lead the Office of Management and Budget.
“We look forward to working with both men to help ease access to credit for qualified borrowers and accelerate the housing recovery,” says MBA President and CEO David H. Stevens in a written statement.
Castro’s new role is part of a reshuffling of Democratic cabinet personnel that started with the resignation of Kathleen Sebelius, former secretary of the Department of Health and Human Services (HHS). Following her resignation, Sylvia Mathews Burwell stepped into the role, leaving her position as OMB director open for Donovan.
“With Castro becoming the next HUD Secretary, and Shaun Donovan soon to become the new Director of OMB, the Administration will be well positioned to address the important housing policy issues,” Stevens writes.
Earlier this year, Stevens said real estate finance was stuck in the same “sick system” as it was during the throes of the housing crisis. He cited the government’s increased role in housing — as it backs 90% of mortgages in today’s market — as the principal concern for his comments.
Written by Emily Study