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62 consent by the Senate is a check and balance required under the Constitution. If HUD and the White House are purposely circumventing the nominations process, that's unacceptable. A means of vetting those who will oversee a major part of the government is lost. "HUD hasn't stated a reason for proceeding this way, and I don't want to see a precedent set in which HUD or other agencies circumvent the nominations process. e advice and consent process is constitutionally established and works well. ere's no good reason to change it or avoid it." Grassley says he's concerned about what circumventing the nominations process could mean for the accountability of this and future administrations. "e erosion of advice and consent could have far-reaching implications for management and accountability," he said. "Advice and consent is a valuable tool to inform policy and help government agencies manage programs appropriately. e confirmation process builds accountability to Congress and the public from the senior-most individuals in the executive branch. e most senior government positions require Senate confirmation, so individuals who aren't confirmed in their positions but are operating in control of large segments of the government have lost a measure of accountability that they might otherwise have." HUD has defended the move. In fact, Golding, one of the subjects of Grassley's consternation, framed it as essential for business continuity in the department. "e appointment of a principal deputy assistant secretary is a necessary step so that HUD can continue to serve the American people," Golding told DS News. "Ultimately, the employees and the public deserve to have someone lead the program. It is important to have committed public servants in leadership roles as it supports the goal of effectively managing the organization. "Also, this is not new; the PDAS position is also utilized at other government agencies such as the Departments of State, Labor, and Defense." But despite the protestations of the senator, the housing industry itself does not seem concerned about the nominations process. Golding is a well-respected figure and, process aside, seems likely to have broad support, at least for now. Five Star Institute President and CEO Ed Delgado was cautiously optimistic. "I am pleased that Ed Golding was appointed to the position of principal deputy assistant secretary at FHA. Ed brings experience and knowledge to the post at a time of uncertainty, particularly around affordability and funding of MMI. FHA has to convince young America that homeownership is and remains the central component to building personal wealth and financial stability." GSE SECRECY But Senator Grassley was not done taking the Obama Administration to task. Later, he wrote separate letters to U.S. Attorney General Eric Holder and U.S. Department of Treasury Secretary Jack Lew seeking more transparency from the government regarding GSE profits. e Senator's letters were based on a report that originally appeared in the New York Times regarding an alleged lack of transparency and claims of the assertion of executive privilege by the President. He wrote that it is unclear whether the President had asserted executive privilege to withhold documents regarding the sweeping of GSE profits into Treasury and questioned whether the Justice Department was authorized to do so. "e taxpayer has a right to know what has transpired," Grassley wrote. "But, instead of transparency, there appears to be an invocation of executive privilege. If true, this is cause for concern." "Senator Grassley isn't taking a position on who's entitled to what shares or appropriate levels of return," a Grassley staffer told DS News. "He's simply asking why the Administration reportedly is citing executive privilege to withhold documents on major government decisions." For its part, Treasury responded with a letter of its own. In the response letter, Treasury's Acting Assistant Secretary for Legislative Affairs, Randall DeValk, said that he wanted to "clarify some misunderstandings" from some press reports regarding the agreement, and said that the government's $187.5 billion bailout of Fannie Mae and Freddie Mac with taxpayer funds in 2008 was not an "ordinary" loan. "[I]nstead, (Treasury) committed (and continues to make available) hundreds of billions of dollars of capital, an amount that far exceeds the $187.5 billion in funding drawn by the enterprises to date," DeValk wrote. "Treasury also took on an enormous risk when rescuing the enterprises in the middle of a financial crisis – a risk for which any private investor would have demanded substantial compensation." DeValk noted that when Fannie Mae and Freddie Mac were taken into conservatorship by the FHFA in September 2008, the GSEs "Ultimately, the employees and the public deserve to have someone lead the program. It is important to have committed public servants in leadership roles as it supports the goal of effectively managing the organization." –Ed Golding

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