Dems Question Otting’s Legitimacy to Head FHFA

Jan 28, 2019

The two most powerful congressional Democrats overseeing federal housing policy–House Financial Services Committee Chairwoman Rep. Maxine Waters (D-CA) and Senate Banking Committee Ranking Member Sen. Sherrod Brown (D-OH)–are openly questioning whether Comptroller of the Currency Joseph Otting has the right to run the Federal Housing Finance Agency (FHFA) on an interim basis, including his ability to announce potential policy changes.

Otting was appointed by President Trump to head the FHFA until a replacement for the agency’s outgoing director, Mel Watt, is confirmed by the Senate. In a letter to Otting, Waters and Brown claimed that his appointment ran afoul of the Housing and Economic Recovery Act of 2018 (FHFA), which stated an interim agency director must be chosen from the ranks of deputy directors within the FHFA.

“We are concerned that President Trump has not chosen to select an Acting Director using the process Congress outlined in HERA,” Waters and Brown wrote in a letter to Otting. “However, since you have assumed this role, we are writing to seek information about your planned tenure there.”

Waters and Brown requested that Otting provide more information on his recent announcement that the White House will be presenting its plan to end the conservatorship of the government-sponsored enterprises (GSEs). They also questioned his recent decision not to have the FHFA defend the constitutionality of its leadership structure court–last July, the Fifth Circuit ruled that the FHFA’s structure was unconstitutional.

Waters and Brown demanded that Otting provide an update by Feb. 1 that will “ensure that any direct action taken by the agency will continue to meet Congress’ direction.”

About the author

Phil Hall

Link copied

Published

Jan 28, 2019

Sales and Marketing

How Originators Are Getting First-Time Buyers To The Closing Table

Three originators shared their first-time buyer strategies during the latest installment of NMP Ignite

The Loan Originators helping first-time buyers in 2026 are not relying on a better mortgage rate to solve every affordability problem.During the latest NMP Ignite webinar, three originators shared distinct approaches to getting buyers to the closing table, from structuring s...

Regulation and Compliance

ROAD Act’s Housing Incentive May Be Too Small To Move Supply

Realtor.com finds the median city risks losing only about $84,000, although the policy could carry more weight in supply-starved Northeast and Midwest markets

A key housing-supply provision in the 21st Century ROAD to Housing Act may be too small to unlock meaningful purchase inventory in most markets, according to a Realtor.com analysis.The provision ties a portion of municipalities’ Community Development Block Grant funding to h...

Nov

California Mortgage Expo – Pasadena

Pasadena, CA

More from

Regulation and Compliance

ROAD Act’s Housing Incentive May Be Too Small To Move Supply

Realtor.com finds the median city risks losing only about $84,000, although the policy could carry more weight in supply-starved Northeast and Midwest markets

Regulation and Compliance

Aug 05, 2026

CRA Proposal Could Reshape Bank Lending And Affordable Housing Investment

The OCC and FDIC would put more weight on lending while easing community development requirements for hundreds of banks

Regulation and Compliance

Aug 05, 2026

Fannie Mae AI Governance Deadline Arrives Aug. 6

Seller/servicers using artificial intelligence in origination or servicing must have formal policies, oversight, and vendor controls in place

Regulation and Compliance

Jul 31, 2026

Condo Review Deadline Puts Lenders On The Clock

Fannie Mae and Freddie Mac will eliminate abbreviated project reviews for condo applications dated on or after Aug. 3

Regulation and Compliance

Jul 24, 2026

TRUE Releases AI Governance Guide Ahead Of Fannie Mae Deadline

Guide focuses on tracing mortgage data from borrower documents through AI validation, human review, and final LOS entry

Regulation and Compliance

Jul 22, 2026

AD Mortgage Warns Condo Eligibility Changes Could Restrict Conventional Financing

Wholesale lender cites internal loan data to urge regulators to monitor whether new condominium eligibility standards reduce access to conventional financing

Regulation and Compliance

Jul 20, 2026

Popular