Reuters: Regulatory News: UPDATE 1-Obama to tap congressman Watt as U.S. housing regulator -sources

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UPDATE 1-Obama to tap congressman Watt as U.S. housing regulator -sources May 1st 2013, 12:44 Wed May 1, 2013 8:44am EDT By Margaret Chadbourn WASHINGTON May 1 (Reuters) - U.S. President Barack Obama plans to nominate Democratic congressman Mel Watt to oversee mortgage financiers Fannie Mae and Freddie Mac , a White House official said on Wednesday. If confirmed by the Senate, Watt will replace Edward DeMarco, a career civil servant who has led the Federal Housing Finance Agency in an acting capacity since 2009. The official said the announcement was expected to come from the White House on Wednesday. Watt's nomination must first win confirmation, and Republicans could try to block the North Carolina lawmaker. A spokesman for Watt declined to comment. The White House said there would be a "personnel announcement" at 2:15 p.m. Watt has served two decades as a Democratic lawmaker in the House of Representatives and is a member of the Financial Services Committee. He has a "proven track record of fighting to rein in deceptive mortgage lenders, protect consumers from abusive financial practices, and expand affordable housing as well as working across the aisle to find common ground on critical issues," a White House official said. In 2011, Obama nominated North Carolina banking commissioner Joseph Smith to run the housing agency but eventually withdrew his name from consideration after Republicans refused to approve him. More recently, Obama had considered economist Mark Zandi, a registered Democrat who some analysts said would have had bright prospects for confirmation given his work as an adviser for Republican Senator John McCain during his 2008 presidential campaign. Still, some conservatives made clear that was not enough while continuing to vocally praise DeMarco for his role as warden of Fannie Mae and Freddie Mac, protecting their assets. The FHFA, as overseer of the two companies, has played a major role in steering programs carried out by Fannie Mae and Freddie Mac, which own or guarantee about half of U.S. home mortgages. DeMarco has often clashed with the administration's goals for the companies, as he has refused to carry out some housing relief programs that the White House has favored. The next FHFA director would be expected to guide Fannie Mae and Freddie Mac through an overhaul process that would reduce their role in the housing finance system, though Democrats and Republicans have yet to agree on what should replace them. Fannie Mae and Freddie Mac were seized by the government in 2008 as mortgage losses mounted and currently back about half of existing home loans. The two government-sponsored enterprises have received $187.5 billion of taxpayer funds to stay afloat. Link this Share this Digg this Email Reprints

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