The Washington Post reports that David H. Stevens will be taking over as head of the Mortgage Bankers Association. Stevens currently serves as Assistant Secretary for Housing in the Department of Housing and Urban Development, and as the Commissioner of the Federal Housing Administration. He has a conflict of interest so deep that he should be fired at once.
Here is how HUD describes his duties:
Commissioner Stevens has direct responsibility for oversight and administration of the FHA insurance portfolio, which includes multifamily housing, insured health care facilities and well over 20 percent of mortgages in the domestic single family market. Stevens also has responsibility for other programs within HUD, such the regulatory areas of the Real Estate Settlement Procedures Act (RESPA) and the Secure and Fair Enforcement Mortgage Licensing (SAFE) Act.
Before joining HUD, he worked for Wells Fargo and Freddie Mac, and was CEO of the nation’s largest private real estate firm. He announced his departure last week, saying that he had not accepted any job offers. The reporter, Dina Elboghdady, tells us that he is consulting with HUD lawyers to make sure he follows ethics rules.
His current duties include working on a settlement with the mortgage servicing companies to absolve them of their fraudulent conduct in dealing with American homeowners. The Mortgage Bankers Association represents mortgage originators, like Bank of America and Wells Fargo. These companies own most of the largest mortgage servicers. This is from the Mortgage Bankers Association website:
Make no mistake about it; we are an organization dedicated to helping our members do their business. We actively advocate for our members, and have done so for nearly a century. We have seen the real estate finance industry evolve into one of the strongest and most sophisticated of global markets.
Allowing Stevens to stay on the job, and saying that it comports with ethics rules, is proof that the term “ethics” has lost all meaning. He is working on a settlement that in some news stories calls for a penalty of $20 billion, which only banksters think bears any relationship to the horrifying damage caused by these sharks, through jacked-up fees, fraudulent court filings, dual-track loan modifications and other sleazy tricks played on suffering homeowners. He comes from the industry, and is heading to the group that put out slimy reports condemning any steps that might aid homeowners, including judicial modification of mortgages in bankruptcy.
Why is he not immediately fired for cause? President Obama can’t even use his standard excuse, that we should look forward, not at the past. I’m looking forward, and I see a totally compromised person negotiating the future of millions of Americans.
And when he gets fired, terminate his health insurance immediately.
Update: This post was communicated directly to Mr. Stevens by a reader. He doesn’t seem to see how other people might worry about actual conflicts of interest. And I failed to note the sterling reputation he has with the bank-friendly Wall Street Journal.




42 Comments

I’m sure Obama rubber-stamped an ethics waiver for this douchenozzle so that he can be sure his new employers’ membership is in no way compromised by anything that happens on his remaining watch. I mean, you wouldn’t want people who know nothing about Mortgage Bankers’ needs deciding which of those needs get met by our government, would you?
Punk ass beeyotches, every single one.
Adding: this is exactly the type of conflict the housing-concerned Democrats would have excoriated a Bushie for during the previous Administration. I’m sure Barney Frank and other mortgage-involved Democratic leaders will be all over Obama for allowing this compromised individual to stay on the public payroll until his office Bigelow carpeting has been installed and his Maybach all polished up.
Come, come, what’s the problem here? Can’t you see, this man is a ‘savvy businessman’ and we need his expertise. Why do you want to punish success?
IOKIYAMOTU
srsly!
I can’t believe it keeps getting worser and worser with this administration — disgusting
Yep. It’s gone from almost Bush, to Bush II to Bush on steroids.
I don’t know why we keep supporting the Dems. Do you?
Shrub’s presidential epitaph reads: Worst. President. Ever.
Obama’s will say: Worse. Than. Bush.
just a quick note: Stevens is stepping down from his duties at the FHA and HUD. that was reported a week ago. ultimately, i suppose, i understand your wrath but you ought to check the news first before going ballistic.
Whistling in the wind. He’s not going to turn into a person we like. He’s not going to change his ways.
That’s the way I see it. And, I’m not pulling any punches on my comments anymore. Just to warn you.
It seems you all think that Stevens will wear both hats at the same time? I would have thought he would leave the FHA for the MBA gig, or is that not a time-consuming job and he can do both?
There is absolutely no way the conflict of interest isn’t massive.
Because very often the choice is between a Democratic shit sandwich and a Republican shit casserole. Shit with bread or pure shit; you get to choose. Worse yet if you don’t vote it makes the Koch’s really happy and that’s the truly disgusting choice.
“Why is he not immediately fired for cause?”
Didn’t say anything “bad” about the military or Obama, no tape to be edited beyond recognition, no DFH proclivities…
That as supposed to be a reply to ACD14
So now you can work for the USG & lobby at the same time.
Corruption so thick you can’t even slice it with a sharp knife.
Jesus Christ! I thought the Bush administration left office in January 2009.
When you say You All, whom are you referring to? This site has a lot of folks with varying opinions and stuff. ?
To be more precise, he should never have been appointed in the first place.
Who is? I stopped “supporting” Obama a looooong time ago.
Check the paragraph that begins: “Before joining HUD”.
Jesus Christ! I can’t even pick a comment to argue with. Too many. How very fabulous does one have to feel to post a hypothetical question? Sorry. Pose away. We’re all amazed. Dude!
It’ll be interesting to see if this guy is “asked to leave” like that Crowley guy.
He plans to leave HUD in late April. That’s the part that makes this so distasteful.
The post indicates that (albeit not super clearly), but Stevens is continuing to work on some projects at FHA/HUD *while* working in his new job at the Mortgage Bankers Assoc. The issue is with the overlap whilst Stevens serves two masters… well, let’s get real: Stevens will only serve ONE master, and that’s the private sector uber wealthy elites, whilst screwing over the “small people” who are allegedly represented by FHA/HUD.
It is a clear conflict of interest, and imo an ethics violation. Not that Obama’s “counting” or anything. Fine with the Great Pretender.
I’m kinda getting tired of the comments about obamabots and such. Do people actually read the comments here? I can’t tell, sometimes.
These nestled comments don’t work here. Many people have said this. And, why did we all friend each other at my fdl if there is no way to talk to each other through that function?
Chu sez U.S. will push ahead with U.S. nukes. Nothing to worry about since U.S. nukes will be safe.
http://www.msnbc.msn.com/id/42097170/ns/politics-more_politics/
Ooops, wrong thread.
I detest these nested comments. I see no good reason why MyFDL cannot have the exact same format and tools that the other sites have, that seem to work just fine.
Well, I have nothing against “nestled” comments; it’s the “nested” ones that get to me. Just teasing.
Right and really good looking in a classical sort of way….Just one more good ol’ boy. Gets a pass.
That’s exactly what I just heard on my radio…US nuke sites are safe…..Grace under pressure…Cool.
I meant ‘everyone who had commented until I did’. No varying opinions then, as far as I could see.
“Before joining HUD, he worked for Wells Fargo and Freddie Mac, and was CEO of the nation’s largest private real estate firm. He announced his departure last week, saying that he had not accepted any job offers. The reporter, Dina Elboghdady, tells us that he is consulting with HUD lawyers to make sure he follows ethics rules.”
It would be a real change if he were following ethics rules, but being appointed as mortgage bankers head and not accepting any job offers don’t seem to match up. If he says that he decided to step out of his job with HUD without any job in mind and then this just happened to reach out to him would be soooo believeabull.
BTW, my recommend button didn’t work. I tried it several times but got no response. Sorry.
It’s perfect. Just perfect. Rob a nation, then you get to run it.
Agreed. This is as egregious a conflict of interest as there could be. First, it’s startling that with his background, he was appointed to ANY position in HUD; their interests are dramatically opposed. It’s a bush move.
Second, in the midst of an attempted “fix” to systemic financial system failures over alleged massive fraud committed by the mortgage lending and servicing industries, continue to represent both sides is a startling conflict of interest that is both real and conveys the appearance of invidious conflicts.
This is really a no brainer for anyone remotely familiar with professional ethics. There are no professional or even pragmatic issues that justify his continuing to remain a public employee – it’s not as if he needs the money. On K Street, he can go back to wearing $10,000 suits and $2000 pairs of shoes.
This is one more reminder that regulatory capture includes the White House, not just executive agencies.
A date that might conveniently intersect with a financial settlement. It’s like leaving the fox in the hen house until there are no more chickens to guard.
Actually, as in Egypt and Libya, rob and run at the same time.
That’s a big, huge problem with hiring “experienced people”. “Experience” means having passed through the revolving door enough times to be trusted by the masters of the universe.
Didn’t say that the Marines’ torture of Bradley Manning was “stupid.”
Put another way,the Dems are driving us off the cliff very slowly whilst the GOP is full speed ahead.
It doesn’t matter if the Koch brothers or corporate Dems are wielding power either way we are screwed.We won’t get change unless we are willing to make sacrifices,you don’t have to vote for either party.
They do say that timing is everything. And Tom Miller, head of the State AGs is recommending a blanket fix for the fraudulent mortgages; apparently he wants to be the head of the CFPB.