Moody's Zandi Is Top Pick for Fannie Watchdog

by 14 Apr 2013

(CNBC) -- Mark Zandi, a well-known economist, is a front-runner to lead the U.S. housing regulator and oust Edward DeMarco, who critics say hasn't done enough to aid homeowners, the Wall Street Journal reported.

President Barack Obama tried to replace DeMarco in 2011 as head of the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, but Senate Republicans blocked his nominee to succeed DeMarco.

The two agencies help finance two-thirds of new U.S. home loans, but were seized by the government in the 2008 economic crisis when mortgage losses mounted. They have since drawn nearly $190 billion from the U.S. Treasury to stay afloat.

Zandi is rating agency Moody's often-quoted chief economist, and has testified many times as a witness in congressional hearings. He has also published a well-received study about the 2008 mortgage market implosion.

The White House had not made up its mind about the nomination, but there were signs that Zandi might draw some Republican support, the Wall Street Journal said on Saturday, quoting people familiar with the matter.

The White House declined to comment. Zandi declined to say whether he had been approached for the job, or whether he was interested in the position.

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