Can the White House get around FHFA head?

The "most powerful man in housing policy" poses a problem for the administration

New York /
Mar.March 28, 2012 04:00 PM

Democrats’ efforts to reduce mortgage principals for hundreds of thousands of borrowers are stymied by one man, ProPublica claimed: Edward DeMarco, head of the Federal Housing Finance Agency.

DeMarco, who the Washington Post has called “the most powerful man in housing policy,” has maintainted that principal reductions are too expensive for FHFA Fannie Mae and Freddie Mac, which were bailed out by the government, and as such are closely monitored. And as DeMarco heads the administration that regulates Fannie and Freddie, he has effectively blocked any moves toward broad principal reduction, ProPublica said.

Congressional Democrats and some state attorneys general have spoken out against DeMarco. Maryland Rep. Elijah Cummings even said “he and he alone stands in the way of hundreds of thousands of people, if not millions, being able to [literally] get a new lease on life.”

But, as ProPublica pointed out, there are ways the Obama administration could get around DeMarco, such as name a replacement or push him to step down. And there is the fact that the FHFA, created in 2008 at the height of the financial crisis, does not anywhere clearly define for which “causes” he could be fired, the public interest news organization noted. [ProPublica]

 
 

Related Articles

arrow_forward_ios
Fannie, Freddie to buy mortgages up to nearly $1M
Fannie, Freddie to buy mortgages up to nearly $1M
Fannie, Freddie to buy mortgages up to nearly $1M
(Getty)
Freddie Mac study of 12 million appraisals shows racial disparity
Freddie Mac study of 12 million appraisals shows racial disparity
FHFA director Sandra Thompson (FHFA, iStock)
Treasury suspends investment property restrictions to boost housing supply
Treasury suspends investment property restrictions to boost housing supply
From left: JPMorganChase CEO Jamie Dimon, Goldman Sachs CEO David Solomon and Morgan Stanley CEO James Gorman (Getty)
Demand for private-label mortgages on the rise
Demand for private-label mortgages on the rise
Fannie Mae CEO Hugh Frater (Fannie Mae, iStock)
Fannie Mae to count rent payments toward mortgage approval process
Fannie Mae to count rent payments toward mortgage approval process
Shares of Rocket Cos and LoanDepot rose while shares Fannie Mae and Freddie Mac plunged after Supreme Court ruling (Unsplash)
For mortgage sector stocks, Fannie and Freddie ruling was positive
For mortgage sector stocks, Fannie and Freddie ruling was positive
Mark Calabria and Sandra Thompson (Getty, FHFA)
Biden ousts Fannie, Freddie overseer, leaving them in government’s hands
Biden ousts Fannie, Freddie overseer, leaving them in government’s hands
JPMorgan Chase CEO Jamie Dimon (Getty)
JPMorgan invests in private-label mortgage platform
JPMorgan invests in private-label mortgage platform
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...