FHFA head Mel Watt has said he has plans to alter federal housing finance policy. The largest trade organizations in the industry think that is a job better left to Congress, according to Housingwire.com:
The growing chorus surrounding housing finance reform just got several new large voices, as a group of the largest trade organizations are now weighing in by asking Federal Housing Finance Agency Director Mel Watt to leave housing finance reform to Congress.
In a letter Wednesday to Watt, the Mortgage Bankers Association, National Association of Realtors, American Bankers Association, National Association of Home Builders, and the National Housing Conference state that their collective view is that “comprehensive reform to the secondary housing finance system must come through Congress.”
In the letter, the trade groups state that they believe that the current state of the housing finance system, with Fannie Mae and Freddie Mac under the conservatorship of the FHFA, has “provided stability,” but argue that more needs to be done by legislators to fully fix the system, rather than through actions Watt is authorized to take.