Replies to post #371353 on Fannie Mae-No Politics (FNMA)

[rekcusdo]

It does need to be approved by Congress.

And "for cause" must be something tangible...such as a crime or fraud.

[big-yank]

Great question. Forget the crap you have heard about how he can't be let go without justification. Trump can fire him as soon as he is inaugurated with cause. Watt knows it. That us why I really think he will release and then resign before January 20th.

HERA, when enacted in 2008, imposed a mandate called Duty To Serve on FHFA that required both GSEs to fulfill the mission of supporting three key areas in the housing market:

1. Manufactured housing.

2. Affordable housing for low and low-to-middle income borrowers.

3. Rural, under-served housing markets.

Since 2008, NOTHING concrete has happened to meet this objective as specified by HERA. Under Watt's regime which commenced in 2014, FHFA is still doinking around with "rules" hearings and public meetings scheduled for 2017 to consider options and public views. Or, in other words, 8 years later NOTHING has been done by FHFA to fulfill its proscribed mission as dictated by Congress when it passed the Housing and Economic Recovery Act.

Here is just one link from yesterday's news wire on Watt's failure to adhere to the legal parameters established under HERA and as passed by Congress and signed into law by President George W. Bush regarding Duty to Serve:

http://www.nationalmortgagenews.com/news/compliance-regulation/cheat-sheet-how-fnma-will-require-gses-to-serve-poorer-communities-1092828-1.html

Trump is an experienced businessman who knows how to dispose of employment problems. He will give Watt a package and Watt will accept it and retire comfortably. Then Trump will do what he wants. Release the GSEs and let Treasury handle the clean-up op after confirmation.

This is going to go quickly.

JMHO.

[Ripcord01]

"The statute that created the FHFA states that DeMarco can only be removed when a new director is either confirmed or installed using a recess appointment"


The Obama administration was prodded to fire Edward DeMarco in 2014. However, at that time the Republicans had retaken control of the Senate. Also, it was speculation the Obama Administration kept DeMarco in office because he was taking the blame for not engaging in principal reductions for underwater homeowners..a move that would have made tax payers pay for peoples home loans.

Basically, the Democrats labeled DeMarco as someone against helping lower income homeowners. However, this kind of program was probably not necessary since the delinquent loan rate has dropped substantially since 2014 and home prices have rebounded. This information was probably something the insiders already knew and cited as "executive privilege" in the attempt to cover up what was really happening at the FHFA/Treasury and FnF.