I’m taking a look at the nifty little property flipping scheme involving members of the Housing Authority of Winston-Salem, which in turn prompted me to do some research on HUD, which in turn led me to speculation that John McCain would name former HUD Secretary Andrew Cuomo as SEC chairman.
Cuomo’s record as HUD chairman during the Clinton administration is —to say the least— mixed:
In a 2001 report by the GAO about potential problems facing HUD, the watchdog took note of the fact that several agency programs that it had labeled in 1994 as “high risk” for federal funding were no longer considered as such.
However, a subsequent GAO report said two of HUD’s major program areas – single-family mortgage insurance and rental housing assistance – retained “significant weaknesses” and therefore remained at “high risk” for federal funding. Additionally, two other areas faced “management challenges.”
….The inspector general found that HUD overpayments for low-income rent subsidies totaled “in the hundreds of millions.” Changes made to the planning of the improvement of core financial systems delayed results – and brought millions of dollars in cost overruns.
One failed HUD program in particular stands out as a large blotch on Cuomo’s legacy in Washington. The 203(k) loan program, which was created to help revamp broken-down buildings and turn them into “affordable housing,” became the victim of fraudulent “flipping” schemes, according to a New York Times story in 2006. The turnaround renovation and resale schemes led to hundreds of foreclosures.
I’m being realistic here — it’s now in serious doubt if McCain will have the opportunity to appoint anyone as SEC chairman.
