Amid growing calls by lawmakers and policy advocates to divert some of Fannie Mae’s and Freddie Mac’s increasing profitability to an affordable housing commitment, industry observers speculate that new Federal Housing Finance Agency Director Mel Watt is seriously inclined to act that way. The Housing and Economic Recovery Act of 2008 requires the government-sponsored enterprises to make annual contributions to the National Housing Trust Fund and Capital Magnet Fund. Fannie and Freddie were put in government conservatorship before they ever made any contribution. Late last week, more than 30 Senate Democrats told...