President Obama: Fire FHFA Director Ed DeMarco
Ed DeMarco is a career beauraucrat and a holdover from the Bush Adminstration. As the acting-Director of the Federal Housing Finance Agency, DeMarco oversees Fannie Mae and Freddie Mac which control or own over half the nation’s mortgages.
Without Fannie and Freddie taking action, millions of homeowners will remain underwater, paying more to their mortgage than their home is worth and contributing to the viscious cycle of the housing crisis. But DeMarco has refused to play a part in any sort of meaningful relief for homeowners.
Mr. DeMarco has admitted that reducing principal on underwater homes will save taxpayer money. But on July 31st, 2012, DeMarco announced that Fannie and Freddie would not be undertaking principal reduction at all.For millions of families on the financial brink, such a decision means the difference between keeping or losing their home. The decision flies in the face of the Obama Administration, Congress and dozens of economists from across the political spectrum who all agree principal reduction would be a significant boost for the economy. Representative Elijah Cummings responded:
“It is incomprehensible that Mr. DeMarco would reject the chance to save up to a billion dollars in taxpayer funds while helping nearly half a million homeowners stay in their homes,” said Cummings. “He should immediately withdraw this reckless and misguided letter and start following the law Congress passed.”
It’s disgraceful that Ed DeMarco would play politics on an issue that affects 15 million homeowner. The American people deserve an FHFA director who is willing to do their job, not just posture for Wall Street.
If the Obama Administration is serious about restoring the housing market and fixing the economy, the President needs to fire Ed DeMarco.
We demand that President Obama fire Ed DeMarco and appoint a director of the FHFA that will make principal reduction for underwater homeowners a top priority.