NC Banking Official to Oversee Mortgage Settlement

Feb 13, 2012

Economists and politicians say the North Carolina Commissioner of Banks is perfect for the job of overseeing the new national mortgage settlement, but they say it won’t be easy.

Leoneda Inge:  Joseph Smith has served as the North Carolina Commissioner of Banks since 2002.  About a year ago, The Obama Administration recognized his work with foreclosure prevention counseling and nominated him to run the agency that regulates mortgage giants Fannie Mae and Freddie Mac.   Smith withdrew his name after resistance from Senate Republicans.  Now he’s stepping forward again.  John Connaughton is a professor of Financial Economics at UNC Charlotte.  Connaughton says he wouldn’t want Smith’s new job.

John Connaughton:  Whenever we have a settlement like this, okay, nobody ever gets what they want.   It is always a series of compromises.  And as a result of that, he is going to be dealing with parties on both sides of the issue that feel they have been unfairly treated.

 Smith will serve as independent monitor of the 25-billion dollar mortgage settlement from an office in Raleigh.