The Trump administration is considering nominating economist Mark Calabria to run Fannie Mae and Freddie Mac’s regulator, a potentially controversial pick because he has advocated for policies that would reduce the government’s role in the housing market, Bloomberg News reported. Calabria is a leading candidate to replace Federal Housing Finance Agency Director Mel Watt, a Barack Obama appointee who has led the regulator since President Donald Trump took office. Calabria is currently Vice President Mike Pence’s chief economist. Among the ideas Calabria has previously pushed for are putting Fannie and Freddie into receivership, a process similar to bankruptcy. The companies, which are crucial to the U.S.’s $10 trillion mortgage market, have been under federal control since the 2008 financial crisis. Calabria, a former scholar at the libertarian Cato Institute, has also called for abolishing the mortgage-interest deduction, something millions of homeowners benefit from. In addition, he has supported getting rid of government subsidizes for the 30-year fixed rate mortgage.
