President Obama's nominee to take the role of ""Federal Housing Finance Agency"":http://www.fhfa.gov (FHFA) director and lead the government's efforts to reform the housing finance system has pulled his name out of the running.
Joseph A. Smith, Jr. has served as North Carolina's banking commissioner for the past eight years, and he was the White House's top pick to head the agency charged with overseeing ""Fannie Mae"":http://www.fanniemae.com and ""Freddie Mac"":http://www.freddiemac.com.
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Smith's nomination got the green light from the Senate Banking Committee ""back in mid-December"":http://dsnews.comarticles/fhfa-nominee-pledges-commitment-to-public-service-and-housing-finance-2010-12-13 but the selection process died when it progressed to the full Senate floor as lawmakers let time run out without making a decision before the 111th Congress came to an end at the close of 2010.
The ""_Wall Street Journal_"":http://online.wsj.com/article/SB10001424052748703893104576108642587984316.html reported that Obama had planned to resubmit Smith as his nominee for the post after the new Congress convened, but Smith himself asked that his name be removed from the pool of candidates after running into stiff opposition from Republican lawmakers.
Smith hit a wall with Sen. Richard Shelby (R-Alabama), in particular. After hearing from Smith at the Senate Banking Committee hearing in November, Shelby said he felt the North Carolina banking commissioner would serve as nothing more than ""a tool of the administration.""
According to the _Journal_, Shelby and other Republicans feared Smith would step up the pressure on Fannie and Freddie to slash mortgage balances for distressed homeowners.