Fannie Mae-No Politics (FNMA)

[obiterdictum]

Watt can be replaced at Trump's discretion should he prove to be adversarial to the admin. wishes.

The President of the US cannot remove the Director of the FHFA at his discretion. The President can remove the FHFA Director before the end of his term for cause. Removal is not done by the Congress.

HERA 2008, Section 1312 (b)(2):

‘‘(b) APPOINTMENT; TERM.—
‘‘(1) APPOINTMENT.—The Director shall be appointed by
the President, by and with the advice and consent of the Senate,
from among individuals who are citizens of the United States,
have a demonstrated understanding of financial management
or oversight, and have a demonstrated understanding of capital
markets, including the mortgage securities markets and
housing finance.

‘‘(2) TERM.—The Director shall be appointed for a term
of 5 years, unless removed before the end of such term for
cause by the President.
https://www.gpo.gov/fdsys/pkg/PLAW-110publ289/pdf/PLAW-110publ289.pdf

Generally speaking, "removed.........for cause by the President" means that an independent agency or quasi-agency's Director/Officer/Commissioner can be removed from office by the President for "inefficiency, neglect of duty, or malfeasance in office."

See this Supreme Court case, which has been the standard for such removals by the President:

Humphrey's Executor v. United States
https://www.oyez.org/cases/1900-1940/295us602 and
http://www.casebriefsummary.com/humphreys-executor-v-united-states/
https://www.law.cornell.edu/supremecourt/text/295/602

FTC Act
https://www.ftc.gov/sites/default/files/documents/statutes/federal-trade-commission-act/ftc_act_incorporatingus_safe_web_act.pdf

If "inefficiency, neglect of duty, or malfeasance in office" can be substantially and demonstrably proved, then removal for cause by the President of the US is possible. On the other hand, if "inefficiency, neglect of duty, or malfeasance in office" cannot be proved and convincingly demonstrated, there cannot not be a removal for cause by the President of the US.