January 28, 2011

Conflicting visions makes FHFA director a hard role to fill

Part of the difficulty in filling the position of FHFA director stems from the conflicting visions that both political parties and the Obama Administration have for the role.

The Democrats want to merge Fannie and Freddie into HUD, while the Republicans want to privatize them. The Obama Administration wants the status quo because they are currently invested in affordable housing programs and they want to keep these programs in place.

The Administration needs someone that will speak up, rattle the cage, and be able to stand up in front of Congress and say no when necessary. The country does not need a passive regulator, we’ve had too many of those.