The fallout from last week’s trigger of the “nuclear option” by Senate Democrats, which is expected to lead to the confirmation of President Obama’s choice to be the new director of the Federal Housing Finance Agency, has analysts worried about the possibility of expanded Home Affordable Refinance Program eligibility. The Senate voted to confirm most executive and judicial nominees by a simple majority vote, and it dramatically improves the prospects of Rep. Mel Watt, D-NC, to replace FHFA Acting Director Edward DeMarco. A career civil servant who has been the chief regulator of the government-sponsored enterprises for the past four years, DeMarco has resisted proposals to expand HARP and broaden the GSE loan-modification options to include principal write-downs. Expanding HARP has been...[Includes one data chart]