Senator Corker Introduces “Jumpstart GSE Reform Act”

Thursday, March 14, 2013

In an effort to spur substantive and structural housing finance reform, Senators Bob Corker, R-Tn., Mark Warner, D-Va., David Vitter, R-La., and Elizabeth Warren, D-Ma., all members of the Senate Banking, Housing and Urban Affairs committee, on Thursday introduced the “Jumpstart GSE Reform Act.” 

The legislation would prohibit any increase in the guarantee fee – which is required to be charged by government-sponsored enterprises Fannie Mae and Freddie Mac – from offsetting other government spending. Additionally, the bill would prohibit the sale of preferred shares without congressional approval and structural housing finance reform. The preferred shares were purchased by the U.S. Treasury Department during the 2008 financial crisis and are within Treasury’s discretion to sell or otherwise dispose of. Any premature actions outside of structural reform will only build obstacles to a new housing finance system.

“The reality is that if Congress were to spend ‘g’fee’ revenue from the GSEs on other programs, reforming these mortgage behemoths would become nearly impossible. At the same time, if Treasury were to decide to sell its preferred share investment without Congress having first reformed our housing sector, we would just be returning to a time where gains are for private shareholders and losses are for taxpayers. Neither of these is an acceptable outcome, so I’m very happy that Senators Warner, Vitter and Warren have joined me in this effort, and I hope Congress will take the necessary steps to ensure housing finance reform can happen as soon as possible,” said Senator Corker.

“We know our housing finance system is not sustainable in its current form, and this legislation will keep us on a path to accomplish real reforms. We believe that as we transition Fannie and Freddie out of their present roles, we need to think about the system in its entirety. The guarantee fee should not be mixed with other funding needs, and the preferred shares should be handled as one step within a multi-year process. I look forward to working with Senator Corker and Senators Vitter and Warren on these important reform issues,” said Senator Warner.

“Reforming a broken housing finance system and protecting taxpayers is a win win, and we can begin that effort with this bipartisan GSE reform proposal. This bill shows that Republicans and Democrats do agree on the urgency required to reform the mortgage finance system. Reform can’t happen if the U.S. Treasury pulls a fast one on taxpayers by selling their preferred share investment but our bill will ensure the taxpayers will get the reform they were promised in 2008,” said Senator Vitter.

“It has been nearly five years since the financial crisis, and it is past time to reform Fannie and Freddie. That means removing the obstacles and starting a bipartisan effort to take on housing finance reform this Congress.  I am pleased to have the opportunity to work with Senators Corker, Warner, and Vitter, and I look forward to collaborating with them and other Senators in the months ahead on this important issue,” said Senator Warren.

 


Robinson Team Of Keller Williams Realty Ranked Number 1 In Southeast Region

Jay Robinson and the local Robinson Team were ranked as the Top Group in the Southeastern Region of Keller Williams Realty for the month of June.  The local office outpaced groups from Atlanta, Nashville, Savannah that also made it to the Top Ten list.  Mr. Robinson noted that the ranking is one shared by his entire team.  “We have such an amazing group of professionals ... (click for more)

Nation's Largest Tiny House Event Coming To Chattanooga

The United Tiny House Association, organizer of the for-charity Tiny House Festivals and the Nation’s largest tiny house event held in Florida, is bringing its for-charity Tiny House Festival to Chattanooga. The 2017 Tennessee Tiny House Festival is coming to Audubon Acres Sept. 8-10. The United Tiny House Association will be bringing dozens of tiny houses and micro ... (click for more)

Cleveland City Council Votes 4-2 To Pass A 46-Cent Property Tax Increase

The Cleveland City Council, with scant public notice, voted 4-2 on first reading on Monday afternoon to approve one of the largest property tax increases in the city's history. Richard Banks, Bill Estes, Tom Cassada and Vice Mayor Avery Johnson voted for a 46-cent property tax boost. Opposed were Charlie McKenzie and David May. Dale Hughes and Mayor Tom Rowland were absent ... (click for more)

Police Find Large Cache Of Meth, $23,134 Cash On Hensley At Motel Near Hamilton Place; Police Say He Was Supplier To Rossville Man Who Died In June 29 Overdose

Chattanooga Police said they found Michael Wade Hensley with a large cache of meth, a loaded handgun and $23,134 cash after being summoned to a motel near Hamilton Place Mall last Wednesday. Police said they believe that Hensley, 41, was the supplier for a 36-year-old Rossville man who died of an overdose on June 29. Hensley is now facing federal charges of possession of meth ... (click for more)

Do Something To Protect Our Children

It is unconscionable in this day and age that these children had to exist in such deplorable conditions and that an innocent baby suffered and died alone in a locked car.  Yes, there is blame and accountability considering this family had child neglect charges filed a few years ago (that were apparently dropped and expunged) and a large part of the responsibility should ... (click for more)

Roy Exum: Chik-fil-A Commits To East Ridge And Camp Jordan Development

In less than three weeks after a plan that could enhance Camp Jordan in East Ridge was announced, it has been learned that a Chik-fil-A restaurant will break ground at Jordan Crossing this fall. While developers John Healy, Matt Woods and Ethan Woods cannot make a public comment, the news is every bit as profound as James Earl Jones saying, “If you build it, they will come,” in ... (click for more)