Brian Montgomery, the Federal Housing Administration Commissioner, is against the Congressional Legislation proposal to have the FHA back up to $300 billion in shaky mortgages. Montgomery told the National Press Club that it would weaken the agency, the "FHA is designed to help stabilize the economy, operating within manageable, low-risk loans. It's not designed to become the federal lender of last resort, a mega-agency to subsidize bad loans."

According to Montgomery the real problem was that the agency was trapped by low loan limits and high down payment requirement, which virtually left the FHA out of some housing markets due to the price levels there. In March, higher loan limits were imposed, from $271K to $729 K, which allowed the FHA to enter new markets and help almost 100,000 homeowners. The FHA is also now pricing loans in correspondence to the borrowers´ risk levels.

Montgomery believes that these new procedures will soon help correct some of the housing market´s problems as it will allow the FHA to better serve its mission to give home financing for low income and minority home buyers, instead of funding risky procedures that could backfire and further detriment the market.