Congressional Democrats Unhappy over Federal Housing Finance Agency Lack of Effectiveness

Another Ineffective Government Program No One Knows About

As part of the program to repair the nation’s economy, we have the Federal Housing Finance Agency (FHFA).  The agency oversees Fannie Mae and Freddie Mac, which have been under federal control for three years. The FHFA was also charged with implementing a program to help homeowners whose mortgages were higher than the value of their homes.  The objective was not only to assist those people, but to stabilize the housing industry by reducing the number of foreclosures and bad loans.

How’s that going, not so good. 

The program, known as the Home Affordable Refinance Program, has assisted about 865,000 homeowners, short of initial projections that it would help 4 million to 5 million borrowers.

Democrats in the House seem to be upset at that, reasonably so it appears.

House Democrats called on President Barack Obama to replace a key housing regulator, saying the official isn't taking bold enough steps to turn around the real-estate crisis.

The regulator, Edward DeMarco, acting director of the Federal Housing Finance Agency, met with 17 House lawmakers Thursday, in what was described as a tense meeting about a coming expansion of the mortgage-refinancing program. . . .

The FHFA is considering changes that Democrats said could help between 600,000 and 1 million homeowners. But Democrats say this won't do enough for millions of Americans facing foreclosure or owing more on their properties than their homes are worth.

since this is just one of many government programs that are not working.

Republicans in the House are kinda ambivalent about the program, with some support but

Rep. Scott Garrett (R., N.J.), a toplawmaker on the House Financial Services Committee, is concerned about expanding the refinancing program. The plans "appear to be nothing more than back-door stimulus programs," Mr. Garrett said.

And like all Republicans Mr. Garrett knows we can’t have that awful stimulating of the economy which may help Democrats even as it helps the nation. And when did "stimulus" get to be a bad word?   And the Director of FHFA is a temporary appointee. Why?

The Democrats also called on Mr. Obama to appoint a permanent director of the agency, which has been operating without permanent leadership since August 2009. Senate Republicans opposed an Obama administration nominee last year.

Gosh, what a surprise.