WASHINGTON — Twenty-eight House Democrats from California are pushing President Obama to make a recess appointment to head the Federal Housing Finance Agency.
"The current housing crisis began in the housing market, and our economic recovery is dependent on the important work pending before the FHFA," the Democrats wrote Tuesday in a letter to the president. "It is time to move forward and appoint a new FHFA director."
The letter is a sign that in an election year, the White House is likely to face increased pressure from congressional Democrats to take strong steps to mend the housing market. The California Democrats assert that one in every 211 homes in the Golden State received a foreclosure filing in November 2011.
The FHFA, as the steward of Fannie Mae and Freddie Mac, sits in a powerful position over the U.S. housing market.
The agency is currently being led by an acting director, Edward DeMarco, whose work has earned praise from congressional Republicans, but sparked complaints from Democrats, who argue that he should be taking a more aggressive approach.
In 2010 the White House nominated Joseph Smith, North Carolina's banking commissioner to head the FHFA. But his nomination hit resistance from Senate Republicans who feared that he would not be sufficiently independent of the Obama administration, and he eventually withdrew from consideration.
The House Democrats who are urging Obama to make a recess appointment at FHFA may be hoping that the recent recess appointments at the Consumer Financial Protection Bureau and the National Labor Relations Board are indications that the White House is now more willing to stand up to congressional Republicans.
"FHFA has consistently and erroneously interpreted its mandate far too narrowly," the California Democrats wrote. "Installing a permanent director will of the FHFA will allow the FHFA to move forward to make key decision that will help keep families in their homes and improve our economy."
The letter was signed by Rep. Zoe Lofgren, Rep. Maxine Waters, and Rep. George Miller, among others, but not by House Minority Leader Nancy Pelosi, also of California.
