DeMarcornshould have been a critical figure in setting policy to end the foreclosurerncrisis according to the AG, “Instead, DeMarco’s most notable achievement has beenrnblocking programs to help struggling homeowners.”</p

Over 21 percent of all homes with arnmortgage had negative equity in the fourth quarter of 2012 and banks move tornforeclose on 2,700 homes each day, Schneiderman said.  In many cases, however foreclosures can bernavoided by simply reducing the amount that homeowners owe. “Principal write-downsrnare a necessary and common-sense tool in the massive repair job that is neededrnto mend our broken housing market.”</p

But when the White House proposedrnexpanding these write-downs for GSE-owned mortgages, DeMarco killed therninitiative at great cost to millions of homeowners and to the housing market,rngenerally: According to the Congressional Budget Office, approximately 1.2rnmillion homeowners with Fannie and Freddie mortgages are in need of principalrnreduction. That’s roughly 40% of all underwater homeowners in the UnitedrnStates, according to the op-ed.</p

So why is this man, a Bushrnappointee, “still wielding so much power as head of this important agency?  Because two years ago, Senate Republicansrnmade it clear they would block the confirmation of a new, permanent head of thernagency in order to preserve DeMarco’s power and policies.”</p

Schneiderman said Watt, a member ofrnthe House Financial Services Committee, is prepared to battle for hisrnconfirmation but the outcome is far from certain.  Even if the nomination succeeds, how longrnwill it take and how many more homeowners will lose their homes before he canrntake office?  “There is a quicker way tornget rid of DeMarco now, and pave the way for a new policy direction for thernFederal Housing Finance Agency. He can be replaced as acting director by one ofrnthe agency’s three deputy directors – today”.</p

With a newrnacting director, the agency can quickly move to stanch the bleeding and bring reliefrnto struggling homeowners, Schneiderman said, pointing to a Congressional BudgetrnOffice estimate that an additional 600,000 GSE borrowers could go into defaultrnover the next two years.  An interimrnappointment would also remove any reason for Senate Republicans to hold uprnWatt’s nomination. “The President will have taken their leverage away andrnensured responsible leadership for the agency.”

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