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The Biden administration will replace the head of a huge U.S. housing finance agency, following the Supreme Court ruling that its current structure is unconstitutional.
The White House is moving forward to find a successor to Mark Calabria as director of the Federal Housing Finance Agency (FHFA), which oversees the mortgage giants Fannie Mae and Freddie Mac, told CNBC an administration official .
The official said that, in light of the Supreme Court’s decision, President Joe Biden will seek a new FHFA chief that better reflects the values of the administration.
The decision to expel Calabria became clear after It is that the Supreme Court ruled 7-2 on Wednesday that the housing agency should be more accountable to The Oval Office.
Until ruling of the Supreme Court of this Wednesday, the president could only dismiss the director of the FHFA “for just cause.”
As in a similar decision of the Court Supreme released last year, regarding the Consumer Financial Protection Bureau, the court’s decision on Wednesday will give Biden and future presidents the authority to remove the agency director at any time.
Calabria later that day acknowledged the higher court’s decision and wished his successor luck.
Like a holdover from the Trump era, Calabri a spent much of his time at the head of the FHFA trying to put an end to the 12 years of Fannie and Freddie under government control .
Despite his efforts, the libertarian economist failed to come up with a plan that former Treasury Secretary Steven Mnuchin would find attractive, on how best to orchestrate such a complex and risky extraction.
Meanwhile, the Biden administration is not so keen on ceding the housing authority to private parties, .
“The FHFA has an important oversight mission for Fannie Mae and Freddie Mac, as well as the Federal Home Loan Bank System,” said the official. He laughed from the White House to CNBC. “It is essential that the agency implement the Administration’s housing policies.”
