The talk out of Washington D.C. is that Ed DeMarco, the head of the Federal Housing Finance Agency, is disliked by Obama administration officials for refusing to allow principal reductions for GSE loans. And now, the president is allegedly considering options to oust the FHFA leader.
Analysts with Compass Point Research & Trading released a note citing the Financial Times, which claims top Obama officials are discussing potential replacements candidates for the top FHFA job.
The research note says, “Most importantly, the article states that the officials are prepared to use the president’s recess authority – a controversial move most recently used for elevating Richard Cordray to lead the CFPB.”
Compass Point says it’s doubtful the president, if re-elected, would be willing to take such a controversial stance in today’s environment by ousting DeMarco and using recess authority to replace him.
But, the research firm said, “We believe this issue will be important to watch following the election if President Obama wins, but we are extremely pessimistic regarding the possibility of a recess appointment replacing DeMarco in the medium-term.”
