No Leadership Change at FHFA; Watt/Democrats will Try Again

Despite statements of support fromrnhousing advocates, industry trade groups, and the White House the Senaternyesterday refused to allow a vote on the President’s nominee for Director ofrnthe Federal Housing Finance Agency (FHFA). rnThe Senate voted 56-42 to end debate on the confirmation of MelrnWatt.  Under current Senate practice arnvote of 60 is needed to bring cloture or end what is called the “silentrnfilibuster.” </p

Watt’s nomination was one of two thernSenate refused to entertain within a one hour period on Thursday.  The nomination of Patricia Millett to fillrnone of three vacant seats on U.S. Circuit Court of Appeals for the District ofrnColumbia was also denied an up or down vote.</p

Republicans had objected to the nominationrnof Watt on the grounds he lacked experience. rnHe has also expressed support for principal reduction as a tool forrnmodifying loans held by Freddie Mac and Fannie Mae, something opposed by therncurrent acting director of FHFA Edward J. DeMarco and some Republican membersrnof Congress. </p

Senate Banking Committee member Bob Corker made the following statement after voting against the Watt confirmation.  “I have said from day one that a technocrat, not a politician, should lead the FHFA, the regulator charged with overseeing the $5 trillion portfolios of Fannie Mae and Freddie Mac,” said Corker. “I hope the president will nominate a qualified technocrat with the expertise to play a constructive role in winding down Fannie and Freddie and modernizing our housing finance system.”
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Watt, a Charlotte, North Carolina attorneyrnand since 1993 a member of the House of Representatives, has served on thernHouse Financial Services Committee for 20 years.  His nomination was endorsed by the NationalrnAssociation of Realtors®, the National Association of Home Builders, and thernMortgage Bankers Association.  </p

The cloture vote for Watt was along straightrnparty lines except for Richard Burr, Watt’s fellow member on the North CarolinarnCongressional Delegation, and Rob Portman of Ohio.  </p

It a statement issued after the voternWatt says he plans on keeping his name in contention for the position.  Senate Majority Leader Harry Reid says he willrnbring the nomination back to the floor for another vote. </p

The Center for Responsible Lending, a consumer group which supported Watt’srnnomination, issued the following statement yesterday afternoon.  “CRL remains a strong supporter ofrnCongressman Watt to head the Federal Housing Finance Agency. Rep. Watt isrneminently qualified to run the agency and help put the housing market on thernright path. We are deeply disappointed with today’s outcome and urge the Senaternto reconsider this important nomination.”

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