Preston picked to fix nation’s housing woes

If confirmed by the Senate, Preston would replace Housing and Urban Development Secretary Alphonso Jackson, who announced his resignation last month amid a criminal investigation and allegations of political favoritism.

Preston is widely credited with correcting major problems at the Small Business Administration.

Preston inherits the wreckage of a national housing crisis and a trail of unanswered questions about whether he tilted the Housing and Urban Development Department toward Republican contractors and cronies.

Preston steps in at a chaotic time when foreclosures have surged to record highs. 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 administration has taken some steps to provide relief to millions of people at risk of losing their homes. However, Democrats on Capitol Hill insist more needs to be done and have been moving ahead on additional rescue plans.

A poll released Monday said one in seven mortgage holders worry they may soon fail to make their monthly payments, and even more fret that their home’s value is shrinking.