Posted on 11/23/2013 3:28:32 AM PST by whitedog57
There is already fallout from Harry Reid (D-NV) and The Democrats use of the “nuclear option” to change confirmation hearings to a simple majority vote. Of course, this means that the Democrats can force horrible choices on America without the possibility of a filibuster. While most people have focused on the judicial appointments, one person in the housing finance arena stands to benefits: Mel Watt (D-NC).
Watt would be a disastrous choice as Federal Housing Finance Agency (FHFA) Director. He has NO regulatory experience, did not know what Tier 1 capital was (the lack of which sank Fannie Mae and Freddie Mac in 2008) and is a member of the House Congressional Black Caucus which supports the same policies that almost bankrupted the banking sector and helped created millions of home foreclosures.
Of course, Watt has the unanimous support of Senate Democrats who seemingly never met a government give-away program they didn’t like.
Although I have made the same comments, it is nice to see some analysts in agreement.
“We believe he is less inclined to lower the conforming loan limit, raise guarantee fees, or take other steps that could make housing finance more expensive,” Jaret Seiberg, an analyst at Guggenheim Securities LLC’s Washington Research Group, said in a note to clients. “Yet he is also a threat to engage in broad principal forgiveness and to expand the HARP refinancing program.”
Yes, undo the solid work of Ed DeMarco who tightened the credit box at Fannie Mae and Freddie Mac and raised the guarantee fees to help pay for the mess. Watt is likely to undo DeMarco’s excellent work and return to the bad old days of easy standards and sticking the taxpayer with the loss.
“Senate Republicans simply don’t like the consumer protections Congressman Watt was nominated to develop and implement,” Reid said during a speech on the Senate floor. Really, Senator Reid? I think Republicans are more likely scared of a return with a vengeance of the National Homeownership Strategy from the Clinton era where lenders and the GSEs were encouraged by HUD to streamline underwriting and target low income households for loans, many of whom couldn’t afford homeownership. nhsdream2
It is pretty clear that Watt will push for MORE principal forgiveness for borrowers, MORE HARP, keeping conforming loan limits high and likely lower guarantee fees (again) in an effort repeat the mistakes of the housing bubble.
Reid’s Nuclear Option for Watt’s appointment should be renamed “Government Gone Wild” where checks and balances are being shredded for political gain.
AND as long as Watt can treat Fannie Mae and Freddie Mac as honey pots for the Democrats, it is unlikely that President Obama will ever approve legislation shutting them down. Unless, of course, if the alternative gives Democrats even MORE power to direct housing loans to their constituents.
After all, Fannie Mae was jokingly referred to the lending arm of the Democrat Party. And with Mel Watt confirmed at FHFA Director, we can safely say, to quote the film Poltergeist, “They’re back!”
nuclearcity
On the positive side, it’s like the Titanic accidentally finding a second iceberg, and whacking it, and thus sinking twice as fast down. We can skip the evening dinner on the Titanic, and just dawn the life-vests right now.
I don’t see much of a reason to visit the Senate chamber....if I were a Republican Senator. You might as well start your 2014 campaign season, and hustle back to perform speeches now, and help the new candidates running their campaigns against the 2014-losers.
All republican house members should leave as well.
Let the government shut down.
They should now be focused 100% on winning back the
Senate.
When you look up Gerrymander in the encyclopedia Mel Watt’s 12th District should be the graphic.
The NC dims really worked overtime to put this one together.
http://upload.wikimedia.org/wikipedia/commons/e/e8/North_Carolina_12th_Congressional_District_%28National_Atlas%29.gif
He’s dumb as as...Sheila Jackson Lee. Should fit right in to the rest of this admin.
Perhaps you are right. If Republicans jut walked out Democrats would own all of the bad that is coming.
They cannot stop it anyway, and walking out sends a clear message. Of course some republicans will not walk an we know who they are.
If they owned one backbone amongst them, the Republicans should announce no one approved by a 51 vote majority will receive pay or benefits. Then, make it stick.
It is su funny hearing Democrats complain about gerrymandering as If they don’t have areas that are democratic gerimandering. Sure Republicans are luckiest because we have most of the governorships, but places like Maryland took Republican areas and put them in heavily democratic district making it impossible to have a Republican win a house seat.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.