news-record.com

RALEIGH — Joseph Smith Jr., the state's banking commissioner since 2002, has submitted his resignation so that he can monitor the $25 billion settlement that calls for five of the nation's largest banks to provide relief to struggling homeowners.

Smith's resignation, which takes effect Thursday, has been a foregone conclusion since he was named national monitor for the massive settlement last week.

Mr. Smith won't be going to Washington, however. He plans to remain in Raleigh throughout his three-year appointment.

Gov. Bev Perdue is expected to nominate someone to serve the remainder of Smith's four-year term. Ray Grace, chief deputy commissioner, will serve as acting commissioner in the wake of Smith's departure.

Smith, 62, has enjoyed the support of both consumer advocacy groups and the banking industry -- which no doubt appealed to the Obama administration.

In late 2010, President Barack Obama appointed Smith to oversee Fannie Mae and Freddie Mac. He withdrew his name from consideration when his nomination met resistance with Senate Republicans.

His new job doesn't require Senate approval.