April 18 (Bloomberg) -- President George W. Bush today named Steven C. Preston secretary of U.S. Housing and Urban Development, replacing Alphonso Jackson, who resigned amid a federal criminal probe into contracts awarded by the agency.

Preston, head of the Small Business Administration, would be the nation's 14th HUD secretary. Jackson announced his resignation March 31 amid calls by lawmakers for him to step down. His last day on the job was today.

``Steve Preston is an experienced manager,'' Bush said at the White House with Preston, 47, by his side. The housing department ``requires strong leadership at a time when our housing market is experiencing a period of challenge and uncertainty.''

HUD's Federal Housing Administration has been at the center of Bush administration and congressional effort to stem foreclosures amid the worst real estate slump in a quarter century. Foreclosure filings rose 57 percent in March from a year earlier, RealtyTrac Inc. reported this week.

The FHA insures mortgages made by private lenders to low- income, minority and first-time homebuyers. Congressional Democrats say the agency should play a major role in helping struggling borrowers refinance into affordable loans. The new HUD secretary would help oversee those efforts and serve as a key administration voice on mortgage issues.

Bush urged the Senate ``to quickly consider'' Preston's nomination and ratify it ``on a timely basis.'' He noted that the chamber confirmed Preston as SBA administrator ``without a single vote in opposition.''

SBA Role Qualifies

Bush said Preston's experience at SBA qualifies him to be housing secretary. ``During his tenure at SBA, Steve has managed loan-guaranty programs that are similar in structure to those run by the Federal Housing Administration, and he's made these programs run very effectively,'' Bush said.

Preston ``streamlined the agency's efforts to disburse loans to small businesses and homeowners devastated by Hurricane Katrina,'' Bush said. ``He matched every loan applicant with a case manager to provide the compassion and expertise that applicants needed to navigate the loan process. Within months of Steve's reforms, the backlog of loans fell 80 percent and response times improved by 90 percent.''

Preston became the SBA administrator in July 2006. Before that, he was executive vice president of ServiceMaster Co., which offers landscape maintenance, lawn care and pest-control as well as plumbing, heating and air conditioning services.

To contact the reporter on this story: Roger Runningen in Washington at rrunningen@bloomberg.net

Last Updated: April 18, 2008 16:00 EDT