Lawmakers ask Obama to replace FHFA’s DeMarco

February 07, 2013 02:00PM

Rep. Elijah Cummings and Edward DeMarco

A group of 45 members of the U.S. House of Representatives came together today to sign a letter urging president Obama to appoint a permanent leader of the Federal Housing Finance Agency who will make aiding distressed homeowners a priority, according to the Huffington Post.

Led by Maryland’s Elijah Cummings (D) and Massachusetts’ John Tierney (D),  the lawmakers asked the president to replace current acting director Edward DeMarco with someone who will consider a loan principal reduction program that would help underwater homeowners. The signatories emphasized that there are “approximately 10.9 million residential borrowers” who are currently underwater on their homes.

“It is imperative that we have a strong leader at FHFA to take on these challenges, strengthen the housing market, and promote our nation’s continued economic recovery,” the lawmakers wrote.

DeMarco’s perceived unwillingness to take the regulatory steps necessary to aid homeowners has made him extremely unpopular with many members of the House.

“In the three and a half years since Edward DeMarco was designated Acting Director of FHFA,” the letter said, “questions have persisted about his repeated failure to utilize the authorities available to FHFA to promote a healthy housing finance market.” [HuffPo] –Christopher Cameron