MBA Urges Senate to Confirm DeMarco Replacement

The Mortgage Bankers Association (MBA)rnissued a statement today urging the Senate to confirm a new director of thernFederal Housing Finance Agency (FHFA). rnSenator Majority Leader Harry Reid is said to be planning to bring thernname of President Obama’s choice for the position, Congressman Mel Watt, to thernfloor next week but Reid may not have the votes necessary for cloture, a steprnnecessary to cut off debate and permit an up or down confirmation vote.  </p

Watt’s name was submitted in May to replace Acting Director Edward J.rnDeMarco, a holdover from the Bush Administration who has frequently been inrnconflict with the Administration on housing policies.  Republicans in the Senate voiced immediaternopposition to Watt, most notably Bob Corker (R-TN) who sits on the SenaternBanking Committee who said he “could not be more disappointed in thernPresident’s pick,” because of Watt’s supposed lack of experience in the housingrnarea and because he is a politician. rnRepublicans had also refused to allow the President’s first pick, NorthrnCarolina Banking Commissioner Joseph Smith, an up or down Senate vote in 2009.</p

Today’s statement from the MBA’s was issued by E.J. Burke, itsrnchairman.  It said in part that more thanrnfive years after being placed in conservatorship, Freddie Mac and Fannie Maernremain in limbo.  Watt, Burke said, hasrnbeen nominated to “a critical leadership positionrnthat needs to be filled on a permanent basis in order to advance the debaternover the future of the government’s role in the mortgage market.'</p

“Congressman Watt would bring considerablernexperience to the post of Director. His two decades of work on the HousernFinancial Services Committee gives him a strong base of understanding on a widernvariety of public policy issues related to housing finance. This familiarityrnand understanding would serve him well in this new position.    </p

Burke said his organization has had a longstandingrnrelationship with the Congressman and has had the chance to engage him directlyrnon a number of occasions since his nomination was announced. “MBA would bernready and willing to work with him in his new capacity to provide technicalrnsupport and expertise as he oversees the restructuring of the secondaryrnmortgage market.   Based on these factors, we would urge the Senaternto approve his nomination.”</p

Politico said today that Reid appears to be two votes short of thern60 necessary to call a vote although only a simple majority of 51 is needed tornconfirm the nomination.   Only onernRepublican, Richard Burr of North Carolina, has publicly voiced support forrnWatt’s nomination while seven have indicated their vote is as yetrnundecided.  The seven include JohnnyrnIsakson of Georgia whose election was heavily backed by the NationalrnAssociation of Realtors, Susan Collins of Maine, Jeff Flake (Arizona), JerryrnMoran (Kansas), Rob Portman (Ohio), Tim Scott of South Carolina, and LisarnMurkowski of Alaska.</p

Secretary of Housing and Urban DevelopmentrnSecretary Shaun Donovan and National Economic Council Director GenernSperling have scheduled a press conference for this afternoon to emphasize thatrnthe confirmation of Watt is a top priority of the Obama Administration.

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