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.

 


Widows Harvest Hosts Ribbon Cutting For Home Harvest

Two years ago, Wells Fargo donated a historic and condemnable St. Elmo home at 5316 St Elmo Ave. to local nonprofit, Widows Harvest. For the past 24 months, Widows Harvest has worked with a team of contractors and interior designers to restore, remodel, and resuscitate this historic 2800-square foot home named Home Harvest. This gem is now ready to be placed on the market ... (click for more)

Real Estate Transfers For March 9-15

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)

Pet Dog Dies In Trailer Fire Near Signal Mountain Road

A pet dog died in a trailer fire off Signal Mountain Road on Wednesday night.   Chattanooga firefighters responded to a structure fire around  9:30 p.m.  in a mobile home park at 174 Bledsoe Terrace. The woman who lived there told Battalion Chief Carlos Hampton that she had just left for work when the fire was discovered. The firefighters got the ... (click for more)

Fingerprint Evidence Leads To Arrest Of Antonio Patton Is Armed Robbery Of Store On Bonny Oaks Drive

Fingerprint evidence has led to the arrest of Antonio Preze Patton for the robbery of a store on Bonny Oaks Drive last Dec. 2. Patton, 27, of 2829 5th Ave., is charged with aggravated robbery. Police were notified of the late-night holdup at the Mystik Mart. The clerk said two black males entered the store with their heads covered with hoodies. They appeared to be looking ... (click for more)

Repeal Obamacare, Congressman Fleischmann - And Response

Chuck: I'm writing to express my strong opposition to the plan that is being rolled out by Paul Ryan to replace Obamacare. And as I'm writing this, I'm remembering all the times you and all of your Republican colleagues over the last six years campaigned on REPEALING  Obamacare and used that call to action as the basis for your reelection. And I'm also remembering the ... (click for more)

Roy Exum: You, The Bald-Headed Lady

You were wearing a pretty sweat shirt and blue jeans when I saw you outside the Infusion Center at Erlanger Hospital on Wednesday. You were the one who was nearly bald and I was the guy you greeted with a huge smile as we said hello in passing. You reminded me exactly of my brother Franklin. Years ago when chemotherapy began to rob him of his hair, Franklin was pretty devastated ... (click for more)