Meet Edward DeMarco. As director of the Federal Housing Finance Agency, his job is to do everything in his power to help Americans avoid foreclosure. But DeMarco seems to think his job is just the opposite. In fact, in our fight to get justice for homeowners across the country, Edward DeMarco might just be enemy number one.
DeMarco is a holdover from the Bush administration. He has a very powerful position: he oversees Freddie Mac and Fannie Mae, which hold half the mortgages in the country. DeMarco has used his position to repeatedly side with Wall Street, and he's blocked requests by Congress and the Obama administration to help struggling homeowners by reducing principals on loans. Principal reduction -- which means resetting underwater mortgages so they're closer to fair market value -- is an essential solution that millions of families need, but DeMarco is dead set against them.
Now here's the good news: Next week, during Congress's recess, President Obama has the opportunity to make a recess appointment and replace DeMarco immediately. Let's ask the President to do just that.
DeMarco has come under harsh criticism from members of Congress, and for good reason. He is absolutely opposed to principal reductions on loans, a measure that's been touted by economists and U.S. government officials as the best way to help homeowners who are underwater on their mortgages.
But it doesn't end there.
A recent news investigation revealed that, under DeMarco, Freddie Mac invested billions of dollars in Wall Street securities that bet against homeowners' ability to refinance their loans, while at the same time raising fees that made it harder for homeowners to refinance.
Let's be clear: DeMarco isn't just doing a bad job. He is actively working against the interests of American homeowners and the government's efforts to help them. That's an outrage, and it's time for President Obama to fire him.
The President made a strong recess appointment when he installed Richard Cordray recently as director of the Consumer Financial Protection Bureau, selecting someone we could rely on to serve the interests of people over Wall Street. We need a similar leader at the helm of the Federal Housing Finance Agency, and Edward DeMarco isn't it.
With enough signatures, we can send a message to President Obama and remove a major obstacle in our mission to get justice for homeowners.