President Obama will nominate Mel Watt to lead the FHFA

[ProSense]

Last edited Wed May 1, 2013, 10:47 AM - Edit history (1)

The Morning Plum: A good move on the housing crisis

Posted by Greg Sargent

The failure to adequately deal with the ongoing housing and mortgage crisis is one of the more disappointing aspects of Obama’s record, so it’s good to see that he’s nominating a strong pick to oversee Fannie Mae and Freddie Mac. From the Huffington Post:

President Barack Obama will nominate Mel Watt, a longtime Democratic congressman from North Carolina, to oversee government-controlled mortgage giants Fannie Mae and Freddie Mac in a move that may give the White House greater control over housing policy.

Obama will announce his nomination of Watt to lead the Federal Housing Finance Agency on Wednesday, people familiar with the matter said. The nomination, subject to Senate approval, would thrust the Yale-educated lawyer into the center of U.S. economic policy as the government weighs how best to maintain the housing recovery while reducing the government’s role in propping up home prices and providing loans.

Watt would replace the Bush-appointed Ed DeMarco, who has been widely pilloried by liberals for refusing Obama administration requests to allow Fannie Mae and Freddie Mac to offer relief to distressed home borrowers. Dems are pointing out this morning that Watt has a record of supporting legislation to fight predatory mortgage lending practices.

Watt is all but certain to face opposition from Republicans. HuffPo again:

Many Democrats have argued that Fannie Mae and Freddie Mac should be used to advance policies that would aid the broader housing market, and by extension the economy. Republicans are opposed to using the mortgage financiers as tools for economic or social policy.

Industry executives and Washington lobbyists view Watt as a potential FHFA chief who would go along with Obama administration requests. For that reason alone, Watt may face an uphill climb to confirmation due to potential Republican opposition. Since its creation in 2008 the FHFA has never had a Senate-confirmed director.

It will be interesting to see if Republicans filibuster Watt. As one Dem remarked to me this morning, the optics will not be all that great if they block a well-qualified black Member of Congress who is devoted to bringing relief to middle class homeowners amid the continuing housing and mortgage crisis.

http://www.washingtonpost.com/blogs/plum-line/wp/2013/05/01/the-morning-plum-a-good-move-on-the-housing-crisis/

Original updated.

[ProSense]

1. Kick! n/t

[blm]

2. Article error: Watt is NOT a 'former' member of Congress, he's a SITTING congressman.

And he's smart as a whip.

[ProSense]

3. Corrected. Elizabeth Warren’s statement on Watt:

UPDATE: Elizabeth Warren’s statement on Watt:

The President has made an excellent choice in nominating Mel Watt to be Director of the Federal Housing Finance Agency (FHFA). Congressman Watt is a thoughtful policymaker with a deep background in finance and a long record as a champion for working families. The Senate should confirm Congressman Watt soon so he can get to work stabilizing shaky housing markets and helping struggling homeowners.

That's from the OP link.

[blm]

4. Watt is REALLY smart, but, left the TV appearances to other Dems.

I am pleased to hear of Warren's confidence in his abilities.

[dreamnightwind]

5. Great news!

DeMarco was a huge part of the problem. Hopefully this new pick can be confirmed and is actually someone who will care about the underwater homeowners. Kudos to Obama, a rarity from me, but happy to be able to say it.

[Cha]

6. Hope Mel Watt sails through Congress.

thanks ProSense

[geek tragedy]

7. Finally, we're rid of Ed DeMarco. nt

[pampango]

8. Progressive Caucus Applauds the Nomination of Rep. Mel Watt to Head Federal Housing Finance Agency

Congressional Progressive Caucus Co-Chairs Reps. Raúl M. Grijalva (D-AZ) and Keith Ellison (D-MN) released the following statement today after President Obama nominated Rep. Mel Watt (D-NC) to head the Federal Housing Finance Agency (FHFA):

“The president’s nomination of Rep. Mel Watt to head the FHFA should provide hope to millions of Americans struggling to stay in their homes. Rep. Watt has advocated common-sense policies to help homeowners and stop the foreclosure crisis hurting our recovery. He’s a consistent and passionate defender of homeowners and working families, and he’s the right person for the job.

“The housing market lost half its value during the recession. Ten million Americans still owe more on their mortgage than their home is worth. On Edward DeMarco’s watch, the FHFA has refused to provide relief by either cost-effectively reducing the principal on underwater homes or funding the National Housing Trust Fund. He has chosen to leave homeowners behind.

“We encourage our colleagues in the Senate to confirm Rep. Watt as head of the FHFA as soon as possible. If Senate Republicans choose to filibuster his nomination, as they have with several recent qualified nominees, the president should appoint him during a congressional recess. We need a true champion of working Americans on the job immediately.”

http://cpc.grijalva.house.gov/index.cfm?sectionid=61&itemid=708