The AFL-CIO welcomes President Obama's nomination of Congressman Mel Watt to lead the Federal Housing Finance Agency (FHFA).  This agency oversees Fannie Mae and Freddie Mac, which own and insure millions of working families' home mortgages.  FHFA is responsible for determining what actions Fannie Mae and Freddie Mac can take to help struggling borrowers avoid foreclosure, rebuild our housing markets and repair our economy.

Under Acting Director Ed DeMarco, a Bush Administration holdover, FHFA has prevented Fannie Mae and Freddie Mac from reducing principal amounts on home mortgages.  The resulting mass foreclosures have hurt families, weakened the economy and caused losses across Fannie and Freddie’s entire portfolio. 

We need a Federal Housing Finance Agency director who will take actions to heal the housing market and who is a reliable advocate for homeowners.  Throughout his time in Congress, Congressman Watt has shown a strong commitment to helping homeowners.  We urge the Senate to confirm his nomination without delay.

Already, there are press reports that Republican senators intend to delay or block Congressman Watt’s nomination.  President Obama should move immediately to replace Acting Director DeMarco with another Acting Director to ensure FHFA is managed in the public interest.  

Contact: Josh Goldstein 202-637-5018