FHA's Revolving Door in Full Swing
August 1, 2011 11:00 PM
David Stevens
Stevens left the $150,000 per-year job for a $1.3 million one running the Mortgage Bankers Association. Stevens, 54, was regarded as an effective FHA commissioner, but his move raises questions about his coziness with the industry, despite the billions of dollars in losses MBA members' underwriting practices cost the FHA's insurance fund.
John Courson
At the time of Stevens departure, American Banker filed a Freedom of Information Act request seeking his calendar and e-mails exchanges between the FHA boss and top MBA officials, including its former president, John Courson. The records indicate that Stevens, himself a former mortgage industry executive, maintained close ties with the industry.
Email 1
MBA boss Courson lobbied Stevens on many issues. Courson regularly sought face time with Stevens at MBA events (see email) held at resorts in Puerto Rico, San Diego and elsewhere. For its annual convention in San Diego, the MBA hired the Beach Boys for a private performance, inviting members and guests to "Join us for 'Fun, Fun, Fun' and 'Good Vibrations.' "
Email 2
Sometimes Stevens actively sought out invitations to MBA events, including a conference at the Barton Springs Resort & Spa in Austin, Texas. "Given that MBA's events bring together senior executives from across the real estate finance world, many of them FHA partners, it only makes sense that I should attend," Stevens told American Banker.
Email 3
At the FHA, Stevens relied on the MBA for policy guidance, too. When a Treasury official asked him why the FHA opposed a proposal that aimed to bar lenders from paying brokers extra fees on high-interest mortgages, Stevens forwarded the query to the MBA's Courson seeking input.
Stevens' Calendar
After he met MBA Chairman Michael Berman for dinner on March 2, at a time when he was negotiating for the MBA's top job, Stevens formally recused himself from matters involving the MBA. Yet Stevens' calendar indicates he later held meetings with the MBA on housing finance reform and was involved in discussions on two other matters of keen interest to the MBA — loan officer pay and foreclosures.
New Digs
Stevens announced his FHA resignation on March 10, and the MBA announced his hiring five days later. During his final weeks at the FHA, Stevens housing-related activities included touring a five-bedroom colonial in Northwest Washington D.C., which he later bought for $1.9 million.
