Corker Votes To Confirm Carol Galante To Head FHA

Sunday, December 30, 2012

Senator Bob Corker, R-Tn., a member of the Senate Banking, Housing and Urban Affairs Committee, on Sunday voted in favor of Carol Galante to be an assistant secretary of Housing and Urban Development and commissioner of the Federal Housing Administration.  

Prior to announcing his support for Ms. Galante, who was confirmed by the Senate on Sunday, Senator Corker secured a commitment from her to make substantial changes to FHA underwriting requirements in order to begin restoring financial stability at FHA after substantial losses, primarily from a flawed reverse mortgage program.

“I’m as frustrated as anyone with the losses taking place at FHA and our failure to implement fundamental housing reform, but given Carol Galante’s commitment to make important changes that will help return FHA to its original mission of making affordable loans accessible to qualified first-time home buyers, I voted to confirm her as an assistant secretary of housing and FHA commissioner.  I look forward to working with her as she puts in place the reforms she has promised as well as others that are needed to get FHA back on track,” said Corker.  “The steps that FHA has taken thus far are just a beginning, and going forward, I am fully committed to pushing both Congress and the administration to take up and address the critical issue of structural housing finance reform in this country.”

Ms. Galante sent Senator Corker a letter on Dec. 18, committing unequivocally to the following important reforms to be put in place by Jan. 31:

· Placing a moratorium on the full drawdown reverse mortgage program to assess its viability after $2.8 billion in losses.  This would put a hold on a program that insures reverse mortgages in which people could draw down all of the equity in their homes.

· Substantially increasing 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.

· Increasing 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.

· Increasing 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.  He also continues to work with his colleagues on reforming Fannie Mae and Freddie Mac in order to protect taxpayers from further losses and rebuild the private mortgage market.


Real Estate Transfers For Aug. 13-19

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)

Homeownership Is At 63.4 Percent In 2nd Quarter Of 2015

According to the U.S. Census, homeownership is at 63.4 percent for the second  quarter of 2015, down 1.3 percent from the second quarter of 2014. This is the  lowest rate of homeownership since 1967. To put that in greater context,  homeownership peaked at 69.2 percent in 2004, and the 50-year average is  65.3 percent. Although the data may be indicating otherwise ... (click for more)

Brent Pickard Was Man Shot And Killed By Deputies; 4 From Sheriff's Office On Administrative Leave During City Investigation

Brent Pickard, 46, was the man who was shot and killed by county deputies on Wednesday night after a chase ended on Highway 153.. Four Hamilton County deputies were placed on leave, pending the investigation. At Pine Mar, Pickard crashed and shots were fired resulting in his death.  District Attorney General Neal Pinkston has asked Chattanooga Police to investigate ... (click for more)

Thursday Afternoon Fire Displaces Family Of 3

Chattanooga firefighters rushed to a house fire shortly after  1 p.m. on Thursday  at 4214 3 rd  Ave. Lt. Chris Blazek with Quint 6 said smoke was showing from the eves of the house when the first firefighters arrived. The firefighters forced their way in through the back door and found the fire in the basement, but the flames had spread into two bedrooms. ... (click for more)

The Obvious In School Test Scores - And Response (3)

I have been watching what has become an annual event in Chattanooga, which is the hand wringing and blame game associated with low test scores in our schools.  I keep waiting for someone to bring up what should be obvious unless they either don't want to talk about it or think they shouldn't because it might not be politically correct.   1) The highest school test scores ... (click for more)

Roy Exum: Her Heart Will Go On

Tonight’s a big night in Las Vegas, one of the biggest in quite a while. Celine Dion, truly one of the most magnificent singers of our time, will return to the stage of the Colosseum at Caesar’s Palace after a year’s absence and, if you dare think you can get a seat, it has been sold out for months. Of course, they say in Vegas you can buy anything, but tonight is one of the toughest ... (click for more)