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2 s the newly sworn-in director of the Federal Housing Finance Agency, Mel Watt has a tricky road ahead of him. e future for Fannie Mae and Freddie Mac is becoming an increasingly divisive issue in Washington, with each political party claiming plans to reform the GSEs as either a redistribution of wealth or not enough of a helping hand for the struggling middle class. Navigating this murky political landscape is Watt, who previously served as the United States Representative for North Carolina's 12th district. His decisions regarding the oversight of Fannie and Freddie will have huge ramifications for the future of the housing market, which is why a close examination of his role is central to this issue of DS News. Watt, in office roughly five months when this issue went to press, has been a divisive figure since his nomination, drawing outrage from Republicans who believe the agency shouldn't be led by a politician. Only after some political back-and-forth did Watt officially get the confirmation in January, since then largely keeping quiet on his plans for the future of the FHFA. Only recently at the Brookings Institute did Watt emerge, offering a different direction for the agency than previous director Ed DeMarco. e cornerstone of Watt's plan is to reduce taxpayer risk for the GSEs, without necessarily shrinking the two companies' market footprint. Notably absent from the speech was any mention of reform, but Watt addressed the omission. "I am well aware, and regularly express my belief, that conservatorship should never be viewed as permanent or as a desirable end state and that housing finance reform is necessary," Watt said. "However, Congress and the administration have the important job of deciding on housing finance reform legislation, not FHFA." Now that the GSEs have paid back the bailout from taxpayers, it remains to be seen what the future holds for the two entities. Whether Watt's first speech as director was a bit of political misdirection or a true assessment of his agency's future, the only certainty is that the current political interest in Fannie and Freddie's future should be a hot topic in the coming months—and one that we will continue to diligently cover here at DS News. True to form, DS News is dedicated to offering the most relevant information for those in the default space, which is why REO agents will find this month's issue—packed with pertinent stories like "Today's REO Agents: Why Diversified Skills Are a Must"—a timely addition to their business arsenal. We want to hear from you. Let us know how we're doing at editor@dsnews.com or find us on our social media platforms: Twitter, Facebook, and LinkedIn. As always, we value your input and feedback . Happy reading. Your DS News Editorial Team The Man Behind the Mask default servicing | in print and online VOL. 12 NO. 6 No part of this publication may be reproduced without written permission from the publisher. ©2014 REO Publishing LLC All Rights Reserved This publication is intended to provide accurate, authoritative, and detailed information in regard to the subject matter covered. All written materials are disseminated with the understanding that the publisher is not engaged in rendering legal advice or other professional services. Under no circumstance should the information contained herein be relied upon as legal advice as it is designed to be a source of information only. strongly encourages the use of qualified attorneys or other qualified experts with regard to the subject matter covered. does not guarantee the accuracy of the information and is not liable for any damages, losses, or other detriment that may result from the use of these materials. PUBLISHER ACTING EDITOR-IN-CHIEF DESIGN DSNEWS.COM VIDEO EDITOR STAFF WRITERS CONTRIBUTING WRITERS COPY EDITORS EDITORIAL ADVISORY BOARD ADVERTISING DS NEWS BLACK BOOK AND LEGAL LEAGUE 100 SOCIAL MEDIA CIRCULATION Mark Hulme Ashley R. Harris Jonathon Won Jordan Funderburk Tory Barringer, Colin Robins Kerri Panchuk, Brent Taggart, Carrie Bay, Chris McClain Alison Rich Jerry Alt, LOGS Network Amy Crews Cutts, PhD, Equifax Vic Draper, ProVest Steven Horne, Wingspan Portfolio Advisors Jeffrey Jaffee, CitiMortgage Rick Sharga, Auction.com Jason Myers: 214.525.6760 Thomas Griffin: 214.525.6754 Robyn Clayton: 214.525.6716 David Hoierman: 214.525.6728 Kevin McCrea: 214.525.6756 David Vandecar: 214.525.6745 Dina Duncan: 214.525.6728 Courtney Coffey: 214.525.6781 Kelli Snowgren: 214.525.6786 Blake Stepan Rebecca McDowell f o r m e rl y m a g a z i n e Follow DSNewsDaily on CHAIRMAN AND CHIEF CREATIVE OFFICER PRESIDENT AND CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER DIRECTOR OF ACCOUNTING MARKETING DESIGN PRODUCTION Mark Hulme Ed Delgado John Harrison Ernest Gillespie Matt Hulme Sean Walker Jason Stone Jonathon Won Denis Kashoid Luke Rose FROM OUR DESK

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