The Senate voted 57-41 on Dec. 10, to confirm Rep. Mel Watt, D-N.C., to head the federal agency overseeing Fannie Mae and Freddie Mac, ending a year-long battle by the White House to install a regulator
Mel Watt, a liberal Democratic congressman from North Carolina, favors mortgage write downs. Watt will replace Edward J. DeMarco as director of the Federal Housing Finance Agency who has opposed allowing Fannie and Freddie to reduce the principal on mortgages they own or guarantee and has thereby made it tougher for you to get a principal reduction while modifying your mortgage.
This is good news but I’m not sure how long it will take Mel Watt to have his views make any effect on the current situation of mortgage lenders reluctance to reduce principal in home loan modifications. Only time will tell.