MBA Urges Senate to Confirm DeMarco Replacement

The Mortgage Bankers Association (MBA) issued a statement today urging the Senate to confirm a new director of the Federal Housing Finance Agency (FHFA).  Senator Majority Leader Harry Reid is said to be planning to bring the name of President Obama's choice for the position, Congressman Mel Watt, to the floor next week but Reid may not have the votes necessary for cloture, a step necessary to cut off debate and permit an up or down confirmation vote.  

Watt's name was submitted in May to replace Acting Director Edward J. DeMarco, a holdover from the Bush Administration who has frequently been in conflict with the Administration on housing policies.  Republicans in the Senate voiced immediate opposition to Watt, most notably Bob Corker (R-TN) who sits on the Senate Banking Committee who said he "could not be more disappointed in the President's pick," because of Watt's supposed lack of experience in the housing area and because he is a politician.  Republicans had also refused to allow the President's first pick, North Carolina Banking Commissioner Joseph Smith, an up or down Senate vote in 2009.

Today's statement from the MBA's was issued by E.J. Burke, its chairman.  It said in part that more than five years after being placed in conservatorship, Freddie Mac and Fannie Mae remain in limbo.  Watt, Burke said, has been nominated to "a critical leadership position that needs to be filled on a permanent basis in order to advance the debate over the future of the government's role in the mortgage market.'

"Congressman Watt would bring considerable experience to the post of Director. His two decades of work on the House Financial Services Committee gives him a strong base of understanding on a wide variety of public policy issues related to housing finance. This familiarity and understanding would serve him well in this new position.   

Burke said his organization has had a longstanding relationship with the Congressman and has had the chance to engage him directly on a number of occasions since his nomination was announced. "MBA would be ready and willing to work with him in his new capacity to provide technical support and expertise as he oversees the restructuring of the secondary mortgage market.   Based on these factors, we would urge the Senate to approve his nomination."

Politico said today that Reid appears to be two votes short of the 60 necessary to call a vote although only a simple majority of 51 is needed to confirm the nomination.   Only one Republican, Richard Burr of North Carolina, has publicly voiced support for Watt's nomination while seven have indicated their vote is as yet undecided.  The seven include Johnny Isakson of Georgia whose election was heavily backed by the National Association of Realtors, Susan Collins of Maine, Jeff Flake (Arizona), Jerry Moran (Kansas), Rob Portman (Ohio), Tim Scott of South Carolina, and Lisa Murkowski of Alaska.

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