Committee Approves Watt Nomination, Full Senate is Another Story

Reuters is reporting that the Senate Banking Committee has approved the nomination of Mel Watt to replace Edward J. DeMarco as director of the Federal Housing Finance Agency. Watt is currently a Democratic congressman from North Carolina.

Watt's final confirmation to run the agency that regulates Freddie Mac, Fannie Mae, and the Federal Home Loan Banks is however far from a foregone conclusion. The vote by the Banking Committee was on straight party lines and many Republicans in the senate made it clear when President Obama nominated Watt in May that they would not vote for his confirmation.

Under current Senate operating rules it takes 60 votes to confirm an appointee and the Democrats, while controlling the Senate, do not have a super majority. The recent compromise between Republicans and Democrats which allowed the confirmation of Richard Cordray as head of the Consumer Financial Protection Bureau and is supposed to permit the confirmation of six other appointees does not cover the nomination of Watts.

Republicans scuttled the nomination of Joseph Smith, North Carolina's Bank Commissioner to run the agency early in the President's first term. This led to the appointment of DeMarco as Acting Director.