After Securing Commitment To Make Substantial FHA Reforms, Corker Says He Will Support Galante For FHA Commissioner

Tuesday, December 18, 2012

Senator Bob Corker, R-Tn., a member of the Senate Banking, Housing and Urban Affairs Committee, on Tuesday announced that after securing a commitment from Federal Housing Administration Acting Commissioner Carol Galante to make substantial changes to FHA underwriting requirements, he feels comfortable supporting her bid to become FHA commissioner.

Ms. Galante sent Senator Corker a letter Tuesday committing unequivocally to important reforms to be put in place by Jan. 31, 2013. A copy of the letter can be found here.

Senator Corker said, “I’ve been working closely with Secretary Donovan and Acting Commissioner Galante over the past few weeks on ways we can put FHA on sound financial footing. While this is only a first step, I am encouraged that Acting Commissioner Galante has committed to structural reforms that we both believe put FHA in a much stronger position. Given the reforms she is committed to, I believe that having an accountable commissioner with her resolve and expertise will be in the best interest of the taxpayer."  

Ms. Galante has committed to:

· Place a moratorium on the full drawdown reverse mortgage program to assess its viability after $2.8 billion in losses.

· Substantially increase underwriting criteria for borrowers with FICO scores between 580 and 620 by establishing a meaningful maximum debt-to-income ratio. This will dramatically decrease borrower default rates.

· Increase the down payment requirement and the insurance pricing for loans between $625,000 and $729,000 to protect FHA against loss on high balance loans that are outside Fannie and Freddie conforming loan limits. This will also help to scale back the government’s footprint in the housing market.

· Increase underwriting requirements for borrowers who have been foreclosed upon within the last seven years.

Senator Corker has continually expressed concerns over the pace of reforms at FHA, most recently raising several issues with Housing and Urban Development (HUD) Secretary Shaun Donovan at a December 6 banking committee hearing on the state of FHA’s financial condition. A transcript of the hearing can be found here.


Andy Hodes Receives RCS-D Designation

Andy Hodes, with Keller Williams Realty East Brainerd has completed course work to earn the RCS-D  designation as a Real Estate Collaboration Specialist – Divorce. An RCS-D realtor is professionally trained to neutralize divorce real estate as a business transaction in the best interest of the house – and each divorcing spouse. Mr. Hodes can be reached at 423 595-7355 ... (click for more)

Real Estate Transfers For Sept. 15-21

NOTICE: The Hamilton County Register’s Office did not publish this data. All information in the Register’s Office is public information as set out in T.C.A. 10-7-503. For questions regarding this report, please call Chattanoogan.com at 423 266-2325. GI numbers, listed when street addresses are not available, refer to the location of transactions (book number and page number) ... (click for more)

Boy In Critical Condition; Another Person Stabbed And Man Shot In Dispute At Apartments On Citico Avenue

A boy is in critical condition after being stabbed on Sunday afternoon in what police described as a dispute between neighbors. One other person was stabbed and a man was shot in the stomach in the melee in the 2700 block of Citico Avenue. The injuries to the second person stabbed in the neck and the shooting victim were said to be not life-threatening. The 12:45 p.m. incident ... (click for more)

Woman, 25, Shot On Dodson Avenue Early Sunday Afternoon

A 25-year-old woman was shot on Dodson Avenue just after noon on Sunday. Officers with the Chattanooga Police Department were notified at 12:13 p.m. by a local hospital that a victim arrived with a gunshot wound. The shooting reportedly occurred in the 1300 block of Dodson Avenue. Shaday Millener arrived at the hospital in a personal vehicle with a non-life threatening ... (click for more)

Patrol Cars Donation To Kevin Muhammad's Nation Of Islam Sets A Dangerous Precedent

Re: City Police donating two patrol cars to Kevin Muhammad's Nation of Islam: While I know it's unpopular to mention the wisdom of separation of church and state, this sets a dangerous precedent and should meet with concern from everyone who values religious and secular freedom. What's next? Southern Baptists getting old city parking scooters to patrol church parking lots ... (click for more)

Roy Exum: A Pitch Called ‘The Defector’

When Jose Fernandez was killed early Sunday morning in a boating accident, he was 24 years old yet had already lived a life much larger than almost all old men. He had spent part of a year in an unimaginably cruel Cuban prison, this when he only 14 years old and sandwiched in an inhumane cell among grown criminals. There were murders daily – in his very cell -- and nobody cared. ... (click for more)