The unrelenting campaign by liberal Democrats and progressive activists to depose the Federal Housing Finance Agency’s acting director could backfire by making him politically untouchable, while the badgering directed at the Obama administration threatens to alienate the very man they seek to convince to act in their favor, according to industry observers. According to a memo released late this week that was prepared by New York Attorney General Eric Schneiderman’s legal team, President Obama has the power to replace FHFA Acting Director Edward DeMarco without congressional approval. “We conclude that the president has the authority to remove the acting director at will, and there is a strong argument that he has the authority to designate a new acting director, although the answer to that question is less certain,” noted Schneiderman’s memo.