President Joe Biden will move immediately to replace the director of the Federal Housing Finance Agency, Mark Calabria, an appointee of former President Donald Trump with broad powers over mortgage giants Fannie Mae and Freddie Mac, Bloomberg News reported. The U.S. Supreme Court opened the door for Calabria’s removal with a Wednesday ruling that made clear the president had the authority to oust the regulator. A White House official responded by saying Biden would start the process of inserting an FHFA director who supports the administration’s priorities on housing policy. The official asked not to be identified discussing Biden’s intentions. In addition to paving the way for Calabria’s removal, the Supreme Court also dealt a crushing blow to Fannie and Freddie shareholders who are challenging the government’s collection of more than $100 billion of the companies’ profits. The justices rejected claims that the FHFA exceeded its authority under federal law, leaving investors few options to get their hands on funds they’ve been seeking for years. Read more.
In related news, President Biden yesterday designated Sandra L. Thompson as the acting director of the Federal Housing Finance Agency (FHFA) after ousting the agency’s previous chief earlier in the day, The Hill reported. Thompson will lead FHFA, the conservator and overseer of Fannie Mae and Freddie Mac, until a full-time nominee is confirmed by the Senate. Biden has not yet chosen a permanent replacement for Mark Calabria, a Trump appointee who led FHFA since 2019 until he was dismissed by the president Wednesday. Thompson has served as deputy director of FHFA’s Division of Housing Mission and Goals (DHMG) since 2013. She joined FHFA after more than 23 years at the Federal Deposit Insurance Corp. (FDIC). Read more.
