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

Tuesday, August 6, 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


Global Luxury Real Estate Brand Enters Chattanooga

Engel & Völkers announced the opening of a new shop in the historic city of Chattanooga, marking the first Tennessee location for the global real estate brand. The newly established Engel & Völkers Chattanooga comes as the result of a partnership with local real estate powerhouse Bridge City Realty, and will be led by license partners Tonjia and Jeremy Landreth, two experienced ... (click for more)

Mike Croxall: Bright Ideas For Home Interior Lighting

It’s hard to beat the great natural light of spring and summer, particularly in Chattanooga and throughout southeast Tennessee. But fall and winter do not have to be dark and gloomy. Take the opportunity to add interest, comfort and function to a room with lighting. A lot of rooms are really a blank canvas when it comes to lighting. You may have recessed lights already installed, ... (click for more)

Signal Mountain Committee Says Pulling Away From County Schools Is "Feasible"

After eight months of investigating the viability of Signal Mountain establishing a separate school district, a committee of six has determined that it is feasible and would meet the goal of improving the education provided to students. The committee was also tasked with identifying obstacles and if possible to find ways to overcome them.  Results of the report were presented ... (click for more)

County Commission Votes 7-2 For Rezoning For C&D Landfill At Harrison

The County Commission on Wednesday voted 7-2 to approve rezoning for a Construction and Debris landfill at Harrison.  Voting in favor were Greg Beck, Warren Mackey, Sabrena Smedley, Greg Martin, Tim Boyd, Randy Fairbanks and Jim Fields.   Opposed were Chester Bankston and Joe Graham.  Commissioner Boyd said it was just the first step in permitting for ... (click for more)

Trump - And Response

Hardly a day, even a moment, goes by when some news flash appears sharing what  Trump  said or did. Not catchy and cute as we might feel when we see the baby turn over for the first time or say Da, da. Instead, this grown man and our president defies child cooing and smiling and instead frowns amid growing anger that we voted for this man, a grown up not quite potty-trained.  ... (click for more)

Roy Exum: New Schools On Agenda

Hamilton County School Superintendent Bryan Johnson confirmed on Wednesday that a plan for several new public schools will be included on Thursday night’s School Board agenda. Hamilton County has fallen woefully behind other metro school districts in the state and, with an estimated $340 million in deferred repairs, upgrading facilities - that now average over 40 years old - was ... (click for more)