Business Buzz: White House Urged To Fire Housing Regulator

Federal mortgage overseer is standing between struggling homeowners and banks, leading lawyers say

Want a federally backed mortgage principal write-down and can’t get one? Prominent state attorneys general say the acting director of the Federal Housing Finance Agency, Edward J. DeMarco, is to blame. The attorneys are asking President Barack Obama to fire him because he is upholding policies that are impeding the economic recovery. DeMarco oversees the bailed-out mortgage financiers Fannie Mae and Freddie Mac and refuses to put in place a White House proposal to reduce the principal amount on underwater mortgages. Doing so would prevent foreclosures, save mortgage giants money and spur some economic growth in communities hardest hit by the housing crisis. Write-downs were a central part of a multibillion-dollar mortgage settlement that 49 state attorneys general negotiated wit five major banks a year ago. But DeMarco has done almost nothing to deliver the settlement to applicable homeowners. E has rejected the idea on the grounds that it would expose taxpayers to more losses. But wouldn’t the settlement help pay for some of that, Mr. DeMarco? Well, now you struggling homeowners know who to write your letters to. (New York Times)

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