EdwardDeMarco's tenure at the Federal Housing FinanceAgency may be coming to a close.

The FHFA has been the regulator and effective owner of the twogiant secondary mortgage market institutions, Fannie Mae andFreddie Mac.

Media sources reported over the weekend that Mark Zandi, chiefeconomist at Moody's Analytics, is a lead contender to replaceDeMarco.

DeMarco has been criticized for not endorsing principalreduction as a means of moving the housing market past the financecrisis and helping more homeowners remain in homes they purchasedat very high prices during the housing bubble.

Credit unions have been generally supportive of DeMarco'sleadership but some were also concerned about whether they would retain access to secondaryhousing finance markets as secondary mortgage market reform wentforward under DeMarco.

Zandi joined Moody's in 2005 when the ratings agency purchasedan economic forecasting firm him he helped found, according to thereports.

Media outlets reported that the decision has not been finalizedand that other names under consideration included Rep. Mel Watt(D-N.C.).

Neither the White House nor Zandi have commented on thereport. Zandi was known as an economic pessimist during therun-up to the financial crash but has since been seen as more of aneconomic optimist about the recovery, published reports said.

If Zandi was named to the position, media outlets reported hemight find some friends among Republican senators which could helphis confirmation effort.

Credit unions also may support a Zandi nomination.

Before he became chief economist at Moody's Analytics, Zandiaddressed the 2004 annual meeting of the American Credit UnionMortgage Association, the only credit union trade associationdedicated solely to housing finance and the group said he hasmaintained contact since.

“Since that time Zandi has been a good friend to ACUMA,providing his annual Housing Forecast for our Pipeline magazine andmaintaining contact with us on key issues,” the group's president,Robert Dorsa, wrote in a blog entry about the possible appointment.“Zandi has appeared numerous times on CNBC, CNN and other newsnetworks and is one of the nation's most trusted economists,” ACUMAsaid.

“His timely reports on housing issues on the future of thehousing markets have been accepted by leaders of both politicalparties. ACUMA wishes Mark well as he prepares for a new chapter inhis life and career. We sincerely hope he is appointed andconfirmed by the Senate to lead the FHFA,” the associationadded.