Lending consultant Peter Krikorian has been appointed as a part of an $300m fund set-up by US President Donald Trump to help US businesses get into the lucrative home lending business.
Peter Krikorians appointment comes as the president is pushing to boost lending and consumer confidence in the US, amid fears of another financial crisis.
Mr Trump has pledged to help banks in the country boost their lending by $50bn over the next four years, a pledge he said would boost US economic growth.
“Mr Krikorum will help support the Federal Reserve to support the economy by encouraging banks to increase lending,” said White House spokesman Eric Schultz in a statement.
“As part of his appointment, Mr Krikoras appointment will include a full-time position in the Federal Housing Finance Agency (FHFA), which will be part-time and in addition to a two-year contract as an associate director.”‘
It’s an exciting opportunity’Mr Krakorian has worked at JPMorgan Chase for the past 20 years and is now the head of the lending at the FHFA.
The move is the latest sign that Mr Trump is looking to boost the financial sector.
Last week, he announced a plan to boost US mortgage lending by nearly $1tn over the course of the next decade.
In the next 12 months, the administration is targeting $500bn in federal lending.
In January, Mr Trump announced $1bn in tax cuts and $1.5bn in infrastructure spending, including $1tr in new money for infrastructure and $100bn for highway construction.
He also promised to boost construction spending by $5tn over four years and to create 3m new jobs.
Mr Trump also unveiled a $2tn stimulus plan, but many economists and analysts believe it is unlikely to produce the massive growth expected by the president.
Mr Kriegerias appointment comes at a time when the FHA has also been under fire over its handling of loans.
Last month, the FHC issued an internal report detailing concerns about the amount of mortgage servicing the agency did, particularly in low-income communities.
Mr Schultz said that while the FHP “is not the final arbiter of which lenders will or will not be serviced by the FHB, its findings are very relevant to the administration’s efforts to rein in the housing market”.
“They indicate that there are significant problems with the FHR’s ability to serve those who are low- and moderate-income and who are struggling to find a home,” he said.
“We know that the president and his team have made a commitment to addressing these issues, but it’s important to recognize that, given the nature of the problem, the time to do that is long overdue.”