President Obama Nominates Mel Watt for FHFA Post

by Marlene from Colchester, CT

Update! Mel Watt's official nomination confirmed December 11, 2013! Ask Kate about President Obama's nomination of Congressman Mel Watt for the FHFA post: The latest in national mortgage news, President Obama announced on May 1, 2013 that he is nominating Mel Watt for the position of director of the Federal Housing Finance Agency.

After being confirmed by the Senate, Watt will replace the unpopular Ed DeMarco, commonly regarded by struggling borrowers as the Ebenezer Scrooge of homeownership.

Marlene asks Kate About Mel Watt Nomination for FHFA Post

Hi Kate,

What is your take on President Obama's nomination of Congressman Mel Watt? Do you think he will be confirmed? If so do you think the new FHFA director may eliminate the securitization cut-off date to allow more responsible homeowners access to HARP?

If so, will the confirmation process be completed timely enough before interest rate starts to climb? Thanks, Marlene

Kate Answers: Presidential Nomination of Mel Watt for FHFA Post

Dear Marlene,

Before I begin, I'd like to mention that my opinions are not politically based.

Politicians come and go. Parties changes their stance. But homeownership remains the backbone of our country.

The future of homeownership and the individual homeowner is my concern. Enough said!

Federal Housing Finance Agency (FHFA), Fannie Mae, and Freddie Mac

Why are the FHFA, Fannie Mae, and Freddie Mac important to homeowners?

Fannie Mae was established in 1938 and Freddie Mac in 1970 to provide a steady stream of residential housing funds.

The Federal Housing Finance Agency was created in 2008 to supervise and regulate government sponsored entities (GSEs), including Fannie Mae and Freddie Mac.

This was sparked by the turbulence in the housing market, still affecting our economy and the future of homeownership.

If you've attempted a HARP refinance or HAMP loan modification, it's likely that you are familiar with taxpayer-owned Fannie Mae and Freddie Mac, whether or not the entities (also know as the Enterprises) back your mortgage.

Okay, now on to newly nominated Mel Watt.

Mel Watt Politician vs Ed DeMarco Economist

Mel Watt from South Carolina has served in the House of Representatives since 1992. His emphasis has been to stamp out predatory lending and provide mortgage opportunities for low-income and credit-challenged borrowers.

If he becomes director of the FHFA, he will replace economist Ed DeMarco, acting director since 2009.

DeMarco prefers to eliminate Fannie and Freddie, thereby creating a greater separation between our government and the business of lending money. If he has his way, private capital vs the Enterprises would provide funds for the housing market.

DeMarco's cold indifference toward the plight of those on the verge of foreclosure has done little to endear himself to struggling homeowners.

Ask Kate's Wish List for HARP Refinance and HAMP Modification

Now what do I want?

Homeownership has been a stabilizing force in our nation as long as most of us can remember. I want to see support from the government, no matter if a Republican or Democrat is in the White House, no matter which party controls Congress.

Top on my wishlist is...

• The removal of an arbitrary securitization cut-off date for HARP refinancing.


• A HARP 3 refinance program that does not exclude homeowners with non-Fannie Mae and non-Freddie Mac mortgages.


• A HAMP loan modification program that does not exclude homeowners with Fannie Mae and Freddie Mac mortgages from principal balance reductions. More on this at No Principal Reduction Alternative for Fannie Mae or Freddie Mac (GSE) Mortgage.

Homeowner Wish List for HARP Refinancing and Modifying a Mortgage

As a homeowner, what changes do you want to see? What's top on your wish list? Please comment! (See link near the bottom of the page.)

But one more thing! Have you written the President to add your wishes to the HARP 3 proposal and ask for changes to HAMP loan modification policies? Keep it simple by writing one letter and sending a copy to President Obama, your Washington DC representatives, and your local government.

If you are like me, writing the letter to ask for change and to tell your story is not as time consuming as digging up the various ways to contact your politicians (and sometimes even trying to figure out their names).

I've fixed that! Go to my 4 easy ways to contact Washington DC and your state government. Help restore the strength of homeownership!

Good luck and best wishes,

Ask Kate about Your Mortgage

Anyone can ask Kate a question or add a comment. (To comment, look for the link at the bottom of this page.)

Have You Seen Recent Ask Kate Answers

• Repercussions in Hardship Loan Modification Process
• HARP Mortgage Refinance - Your Hopes and Frustrations
• Qualifying for a Home Mortgage without Losing Sleep
• Mortgage Modification Snags and Insults
• Short Sale vs Mortgage Foreclosure - The Agony of 21st Century Homeownership

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