Fannie Mae-No Politics (FNMA)

[BigBenWallace]

The media tide could be shifting, maybe?

This article states that FnF are are going to be subject to "qualified mortgages", if "they are ongoing", and that Watt is pro FNF. This to me sounds like the reform that will be in place and will keep FnF going. It also goes on to say that he is pro FnF.

There is going to be a compromise to appease some in DC that want to get rid of FnF and this could be groundwork for the beginning of it. Qualified mortgages basically tighten underwriting guidelines a little more than they are right now. please see article and link to article below.

Comings and Goings
FHFA Nominee Faces Senate Skepticism of Skills to Oversee GSEs

U.S. Representative Mel Watt faced lawmakers skeptical of his knowledge of housing-finance issues yesterday when he appeared at a Senate Banking Committee hearing on his nomination to oversee Fannie Mae and Freddie Mac. (FMCC)

Watt, 67, a North Carolina Democrat, offered a bipartisan plan to eliminate the two U.S.-owned companies and replace them with a government reinsurer.

The Federal Housing Finance Agency has explicit authority to help low-income buyers, he told the Senate Banking Committee panel. The agency shouldn’t make or guarantee loans that can’t be paid, he said.

He added that Fannie and Freddie should be subject to the qualified residential mortgage rule, if they are ongoing, and the two should only back loans meeting the qualified mortgage rule.

The Watt nomination is President Barack Obama’s second attempt to fill the FHFA post held since 2009 by Acting Director Edward J. DeMarco, who has been criticized by Democratic lawmakers and consumer-advocacy groups for doing too little to help homeowners struggling in the wake of the financial crisis. The president’s first choice, former North Carolina banking commissioner Joseph Smith, withdrew in 2011 amid Republican opposition.

Watt’s chances of gaining confirmation remain unclear. He would need support from at least five Republicans to gain the 60 votes needed for Senate confirmation if he’s backed by all 55 lawmakers who caucus with the Democrats in the 100-member body. Only one Republican, Senator Richard Burr from North Carolina, has endorsed him.

Senate Banking Committee’s top Republican, Mike Crapo of Idaho, said his concerns about Obama’s choice of Watt, to lead the FHFA reflect the “political nature” of the nomination.

His concern isn’t a reflection on Watt, who has had a “long and successful” career in Congress and is “well liked,” Crapo said in opening comments at the hearing. His concerns “reflect the unique position of the FHFA director,” who has almost “unchecked power” over mortgage market, Crapo said.

Watt, 67, backed a measure that would let bankruptcy judges force lenders to cut principal owed on mortgages -- a tactic that he called a legal “sledgehammer” against banks. Republicans say they will attack that position, his past support for Fannie Mae (FNMA) and Freddie Mac, and his qualifications for the job. Watt has served in Congress since 1992.



http://www.bloomberg.com/news/2013-06-28/corzine-sued-shifting-bank-losses-imaging3-compliance.html?cmpid=yhoo