News coverage of the Senate's confirmation of Congressman Mel Watt on Tuesday to head the Federal Housing Finance Agency (FHFA) was all about politics, not the housing or banking issues he now has to address.
Wall Street doesn't want a new director of FHFA. They like things the way they are, and don't want a new sheriff in town. That is why Republicans are so willing to buck history and tradition, are so willing to stop the first African-American appointee to run FHFA to be confirmed.
The FHFA's decision preserves unfair practices in the mortgage servicing and insurance industries. It means the new approach and lower rates will not be implemented and therefore the status quo will continue.
A plan to increase fees for states that provide judicial recourse for delinquent homeowners fails to take into account the complexities of the foreclosure crisis. If implemented, it will affect the 21 states that are judicial, meaning that a substantial number of future homeowners...
The failure to prevent the millions of troubled mortgages from becoming delinquent and being foreclosed causes damage not only to individual borrowers who lose their homes, but also to their communities and to the economy as a whole.
The Federal Housing Finance Agency declined the federal government's proposal for principal reduction on underwater mortgages chronically behind on payment -- it said principal reduction does not prevent foreclosures while saving taxpayers money.