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» VISIT US ONLINE @ DSNEWS.COM COVER STORY How did Edward DeMarco, a self-effacing economist, become such a lightning rod for controversy? H e's been called "the most powerful man in housing policy," but labels like that don't seem to mean much to Edward DeMarco. His current role as acting director of the Federal Housing Finance Agency (FHFA) is just the latest stop in a long government career that uniquely equipped him to address today's troubled mortgage market. He approaches it with calm determination, drawing on his prior experience at the Treasury Department, the Social Security Administration, and the Office of Federal Housing Enterprise Oversight (OFHEO). In a rare exclusive interview, DeMarco reflected on the responsibilities of overseeing the nation's mortgage giants, Fannie Mae and Freddie Mac. "Well, it's certainly been challenging," he says, using a word that crops up often in his conversations. He then quickly deflects the focus from himself to the broader picture: "But you know, I think that everyone involved with housing finance issues, whether they're policymakers or frankly, homeowners, they've found the environment of the last four to six years very—challenging." While Edward DeMarco chooses his words carefully, his critics are often less restrained. Katrina vanden Heuvel, writing in The Nation, declared, "Edward DeMarco has slowed the economic recovery with the stroke of a pen. His actions are costing taxpayers tens of billions of dollars, forcing millions of homeowners to lose their homes, and contributing to the falling housing prices that are a brake on the recovery." Figures as diverse as Sen. John McCain and California Attorney General Kamala Harris have called for his head. Earlier this year New York Rep. Jerrold Nadler led a group of legislators and activists that arrived on Capitol Hill with a petition demanding his removal. "He is standing in the way," Nadler later told the Huffington Post. "If he doesn't do what he ought to do, then he ought to be fired." That's not so easy, as it turns out. The Housing and Economic Recovery Act of 2008, which established the FHFA, allows the president to replace the director "for cause"—but not simply for implementing unpopular policies. When his predecessor James Lockhart resigned in 2009, DeMarco, then COO, was designated acting director. Obama tried to replace him in 2010 with North Carolina Banking Commissioner Joseph Smith Jr., but the nomination stalled in the Senate. And with the controversy over Richard Cordray's appointment to head the Consumer Financial Protection Bureau, another recess appointment was 47

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