FHFA’s Mel Watt Puts Rate Hikes On Hold; Fannie Mae’s Fate Uncertain

New Federal Housing Finance Agency (FHFA) director Mel Watt didn’t waste any time signaling that he intends to take the organization in a different direction than his predecessor Edward DeMarco. Mel Watt recently sent an email to reporters telling them that he has put a hold on plans to increase rates for insuring mortgage securities, report Jody Shenn and Clea Benson for Bloomberg Businessweek. Rate hikes were intended to make Fannie, Freddie less competitive While both parties eventually want to either get rid of or replace Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage…