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

Center For Sports Medicine And Orthopaedics Is First Tenant For New 20-Acre Ringgold Development

Armour Commercial Real Estate and the Catoosa County Development Authority announced the first tenant for a 20-acre site being jointly developed as part of a public/private partnership and located just off of Georgia Highway 2-A in Ringgold, Ga. The Center for Sports Medicine and Orthopaedics will open a satellite location at the site located on Hwy 2-A across from Battlefield Imaging. ... (click for more)

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)

2 Shot On Rawlings Street Friday Night; 1 In Critical Condition

Two people were shot, Friday night, and one is in critical condition. At approximately  9:56 p.m.  Chattanooga Police officers responded to the 2000 block of Rawlings Street on a report of a person shot. Officers arrived on scene and located one victim lying next to a vehicle suffering from a gunshot wound. A second victim arrived at a local hospital suffering from ... (click for more)

Car Crashes Into Motel 6 In Dalton; Driver, 17, Admits To Texting While Driving

The Dalton Police Department and Dalton Fire Department responded Saturday morning to a crash at the Motel 6 at Highway 41 and Tibbs Road. The driver of the 2005 Pontiac Grand Prix involved left the roadway and crashed into the Motel 6 building causing severe damage to one of the rooms. There were no major injuries. Investigators believe texting while driving was a contributing ... (click for more)

Slaxxon Regret - And Response

Back in the seventies my three oldest brothers had a buddy named Steve Slack. “Slack” was a star soccer player at Baylor and he grew up on Lookout Mountain, which is where I grew up. He and Jimmy, Henry and Bill went to the University of Virginia where they were roommates in an old, beat up house that was painted pink. Naturally, the place became known as the “Pink Palace” but lest ... (click for more)

Roy Exum: ‘Ballooniac’ Fined $25K

The Calgary Stampede is one of the biggest events in Canada and every year it draws well over 1.5 million people to one of the most beautiful places in the world. It started in 1912 as a big rodeo event and today it lasts 10 straight days. A highlight is the chuck-wagon races, where $4 million of advertisements are sold on the wagon’s canvas covers and there are pancake breakfasts ... (click for more)