Corker: There Is Finally Momentum To Move Beyond Fannie And Freddie

Tuesday, August 06, 2013

In reaction to President Obama's remarks in Arizona regarding housing finance reform Tuesday, U.S. Senator Bob Corker, a member of the Senate Banking, Housing and Urban Affairs Committee, told the Southern Middle Tennessee Association of Realtors at a meeting in Columbia he is finally seeing momentum to move a structural housing finance reform bill that ends the Fannie and Freddie model of private gains and public losses.

“There is real momentum growing to finally move a structural housing finance reform bill that ends the Fannie and Freddie model of private gains and public losses, and I look forward to working with my colleagues in the Senate, the House and the White House to see it through,” said Senator Corker.

In June, Senator Corker, Senator Mark Warner, D-Va., and a bipartisan group of senators introduced the “Housing Finance Reform and Taxpayer Protection Act” to strengthen America’s housing finance system by replacing government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac with a privately capitalized system that preserves the availability of desirable mortgage products to creditworthy borrowers and fully protects taxpayers from future economic downturns. 

The Corker-Warner bill, which has drawn broad support from stakeholders and industry experts, includes the following:
 
·       Mandates 10 percent capital, up front, for the system to protect taxpayers against future bailouts. 

·       Winds down Fannie Mae, Freddie Mac and the Federal Housing Finance Agency (FHFA) within five years of bill passage.

·       Transfers appropriate utility duties and functions to the modernized, streamlined and accountable Federal Mortgage Insurance Corporation (FMIC), modeled in part after the FDIC.

·       Replaces the failed “housing goals” of the past with a transparent and accountable market access fund that focuses on ensuring there is sufficient decent housing available. The fund is NOT paid for with tax dollars, but through a small FMIC user fee that only those who choose to use the system pay.

·       Ensures institutions of all sizes have direct access to the secondary market so local banks and credit unions aren’t gobbled up by the mega banks when Fannie and Freddie are dissolved.

Later Tuesday Senator Corker will discuss his bill with the Middle Tennessee Association of Home Builders at an event in Brentwood.  On Wednesday, he will meet with the Sumner County Association of Realtors in Hendersonville and community bankers in Lebanon. 

For more information on the Housing Finance Reform and Taxpayer Protection Act (S. 1217) click here.
 
Press Release: Banking Committee Senators Introduce Legislation to Modernize and Reform America's Broken Housing Finance System
 
Banking Committee Senators Garner Broad Support for Bipartisan Housing Finance Reform Bill
 
Bill Text: Housing Finance Reform and Taxpayer Protection Act
 
Summary of Legislation: Housing Finance Reform and Taxpayer Protection Act
 
Press Release: Corker Statement on House Financial Services Committee Plan to Reform Housing Finance System, Wind Down Fannie and Freddie

green|spaces Announces Winner In NextGen Homes

green|spaces hosted the NextGen Homes Design Competition Finale on Tuesday. With over 100 people in attendance, teams consisting of architects,engineers and contractors from a 200-mile radius gathered to hear the announcement of the winning design. The top six teams presented their designs to the crowd explaining the elements of the first Net Zero Energy homes to be built in Chattanooga. ... (click for more)

Blind Golf Champion And Cancer Survivor David Meador To Inspire Tennessee Realtors

When David Meador lost his eyesight in a horrific car accident at 18, the setback could have marked the end of a promising life. Instead, through faith and fortitude, Mr. Meador turned that devastating circumstance into the beginning of a remarkable journey of overcoming odds and inspiring others along the way. Mr. Meador—a four-time National Blind Golf champion, successful ... (click for more)

Woman Stabbed Multiple Times On Cleveland Avenue Early Thursday Morning

A woman was stabbed multiple times early Thursday morning. At approximately 3 a.m., Chattanooga Police responded to 2104 Cleveland Ave. for a stabbing. Officers located a black female in the roadway suffering from multiple stab wounds. The victim was transported to a local hospital by HCEMS for her injuries and is in stable condition. Investigators have not been able to ... (click for more)

City Council Taking Applications From Those Interested In Serving On City IDB

The City Council is taking applications from those interested in serving on the city industrial Development Board (IDB).   There are four vacancies on the board that has been in the news for its controversial approval and re-approval of $9 million in Tax Increment Financing (TIF) for developers of Aetna Mountain. Resumes are due by Sept. 29.   ... (click for more)

Walking Among Memories, The USS LST-325

I have walked among the head stones at Flanders Fields and have seen the entrenchment of soldiers with only bayonet tips sticking out of the earth. Later I traveled to Normandy where I stood on the sand and made scuff marks with my shoes on Omaha Beach and climbed the hill to the magnificent American Cemetery there. I again walked among the many, many tomb stones so neatly and ... (click for more)

Roy Exum: Troubling Jameis Winston

One of the greatest things about the American legal system is that each and every crime is judged on its own merits. Just because Arizona Cardinals running back Jonathan Dwyer and Carolina Panthers defensive end Greg Hardy were each arrested for domestic abuse earlier this week, each National Football League football hero will be given an independent hearing and trial, if need be, ... (click for more)