Shelby strongly opposes FHFA nominee as administration "lapdog"

Sen. Richard Shelby (R-Ala.) said Joseph Smith, Jr., could be a "lapdog" to the administration that nominated him to be director of the Federal Housing Finance Agency, in explaining his decision to oppose the selection.

Shelby, the ranking member of the Senate Banking Committee, was one of six "no" votes cast against Smith, who was ultimately approved by the panel by a vote of 16-6. Smith's nomination now heads to the full Senate for a vote, potentially before Congress ends its session sometime this month.

Shelby had several pointed questions for Smith at a recent hearing to discuss his nomination, and accused him of having "no experience" running an institution the size of the FHFA in a statement explaining his opposition.

"Fannie Mae and Freddie Mac have already cost taxpayers $150 billion," he said. "The first confirmed director of the FHFA must be a knowledgeable, effective, and independent regulator whose primary focus must be on protecting the American taxpayer.  In my judgment, Mr. Smith is not the best candidate for this job.

"The first confirmed director must hit the ground running equipped with the skills and experience needed to be a strong regulator free from influence by the current administration. In other words, we need a watchdog not a lapdog."

Shelby specifically asked Smith at the previous hearing if he would resist pressure from the administration to help homeowners write down mortgages if it would be to the detriment of Fannie Mae and Freddie Mac. Smith said he would serve first and foremost as conservator of the mortgage giants.

Smith is currently the North Carolina Commissioner of Banks. If confirmed, he would replace Edward DeMarco, who has served as acting FHFA director since August 2009.