Obama Eyeing New Leader for Federal Housing Finance Agency

    Facing increased scrutiny from housing advocates and community groups, President Barack Obama is being asked once again to sidestep political protocol to replace Ed DeMarco, the acting head of the Federal Housing Finance Agency (FHFA).

    Obama is being asked to make a “recess appointment” for a new head of the FHFA, the government agency that oversees home-loan giants Freddie Mac and Fannie Mae. Such an appointment, done by a president when the U.S. Senate is in recess, can be a risky move in such a tumultuous political climate.

    DeMarco Controversy

    In early 2012, Democrats urged Obama, to no avail, to replace DeMarco using a recess appointment. DeMarco has been long chastised for what some see as a harsh stance on changes to the way the government handles underwater home loans. DeMarco has refused to allow Fannie Mae and Freddie Mac, which hold most of the mortgages in the country, to participate in a key program that allows principal reduction. DeMarco has called principal reduction a moral hazard that would incentivize delinquency.

    While the president does have the power to make recess appointments, it can put future political favors in jeopardy and draw a deeper chasm in an already sharply divided Congress. And in the end, the new appointment may not stick because the Senate must eventually approve the new selection.

    This second call for a recess appointment puts the president in more political turmoil. In January, when he made four top recess appointments, GOP leaders cried foul. The U.S. Court of Appeals for D.C. is currently hearing arguments that Obama violated the Constitution and abused his power.

    Other Cabinet Vacancies

    At the same time, Obama is trying to garner favor as he shortlists nominees for secretaries of State and Defense and the new head of the Central Intelligence Agency (CIA).

    By Dec. 31, Obama is expected to name former Republican Sen. Chuck Hagel, of Nebraska, as the next Defense secretary. Other nominees include former senior Pentagon official Michele Flournoy and Democratic Sen. John Kerry, who currently sits as the chairman of the Senate Foreign Relations Committee.

    In replacing Hillary Clinton, who will step down from her secretary of State post, insiders had indicated that U.S. Ambassador to the United Nations Susan Rice was a top candidate. But it’s unlikely that she’ll make it past Senate Republicans, upset by her statements following the U.S. Consulate attack in Benghazi, Libya, in September. Kerry has also expressed interest in the job and is considered a favorite.

    Obama will also likely announce his pick to head up the CIA after Director David Patraeus, a retired four-star general, quit after admitting an extramarital affair. No names have emerged as a replacement, however insiders indicate that acting director Mike Morell is a front-runner.

    In debt? We can help!

    • Amount
    • Type
    • Contact

    How much do you owe?

    What can we help you with today?

    Related Articles

    Millennial Home Buyer Wanted

    Why Millennials Aren’t Buying Homes

    Data shows that homeownership among millennials is down, but that doesn’t mean they aren’t interested in buying a home. In the last two decades, homeownership in the U.S. has declined across the board and especially so for young Americans. The rate of ...

    Continue Reading
    JPMorgan Fined for Illegal Lending Practices

    JPMorgan Accepts $13 Billion Fine For Lending Practices

    JPMorgan Chase Bank agreed to pay a $13 billion fine to the U.S. government for its role in the disastrous mortgage lending practices that landed more than 15 million American homeowners underwater. The announcement was made by Eric Schneiderman, the ...

    Continue Reading
    FDA finances nursing home mortgages

    FHA Steps in to Help Nursing Homes by Backing Mortgages

    Attempts by nursing home operators to stay relevant and profitable in the constantly changing world of health care, received a boost from the Federal Housing Administration (FHA) last year. The FHA stepped up to insure 458 mortgage loans worth roughly $3 ...

    Continue Reading
    New mortgage rules protect consumers

    New Rules Protect Consumers from Overzealous Mortgage Lenders

    A new federal regulation puts the onus on lenders to take meaningful steps to ensure a person can afford a home loan, before they actually give them one. The “ability-to-repay” rule was issued by the Consumer Financial Protection Bureau (CFPB) to help ...

    Continue Reading
    Bank of America settlement

    Bank of America to Pay $10B to Fannie Mae to Settle Claims

    The first week of 2013 has not been a happy new year for some of the nation’s largest banks, particularly Bank of America. On Monday, Bank of America agreed to pay $10 billion to Fannie Mae to clear up claims made on troubled mortgages, mainly associated ...

    Continue Reading
    Fix-and-flip houses

    FHA Extends Program that Allows Quick ‘Flips’ of Properties

    As the nation continues to wrestle with high unemployment rates and a recuperating real estate market, the Federal Housing Administration (FHA) decided to continue one of its popular programs. The FHA extended its temporary waiver allowing loans on quick ...

    Continue Reading
    Housing market

    Housing Market Expected to Rebound in 2013

    With just a few weeks remaining until the end of the year, millions of Americans are seeking ways to make 2013 better, especially from a financial perspective. From making new real estate investments, refinancing mortgages, entering into reverse mortgages or ...

    Continue Reading
    Housing market rebounds

    Foreclosures on Hold for Holidays as Housing Market Slowly Recovers

    With an improving economy and programs aimed at helping homeowners stay current with their mortgages, housing-market analysts say that 2012 will prove to be a turnaround year for homeowners and the country. In addition, mortgage giants Freddie Mac and Fannie ...

    Continue Reading
    Get Help Now

    Overwhelmed with debt? You have options for lower monthly payments!

    x