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

Habitat For Humanity Of Greater Chattanooga Area Recognized By Legal Aid Of East Tennessee

Legal Aid of East Tennessee presented Habitat for Humanity of Greater Chattanooga Area with the 2016 Alexander Hamilton Award on July 21 at their annual Legal Aid of East Tennessee's Pro Bono Awards Night.  The award recognizes non-legal entities who have worked to further the cause of access to justice for Chattanooga residents. Habitat was recognized for their collaboration ... (click for more)

Golden Gateway Apartments Sold For $2.6 Million

The Golden Gateway Apartments on the Westside have been sold for $2.6 million. The sale was to River Front Group Partners from Golden Gateway Group Inc . The units were built in 1964 on over nine acres. The site is 1201 Grove St. (click for more)

Customer Who Shot Robber At East Ridge Convenience Store Said He Threw Cigarette Rack At Him, Threatened To Kill Female Clerk

The customer who shot and killed a robber at an East Ridge convenience store on June 30 said the robber threw a cigarette rack at him and also threatened to kill a female clerk. Charles Russell also said that he fired when Anthony Edmonds reached for something. He said he thought he was going for a gun. East Ridge Police said Edmonds was armed with a meat cleaver that he wielded ... (click for more)

DA's Office Defends Suspended Sentence In School Bus Driver Rape Case

The District Attorney's Office defended a controversial suspended sentence in a rape case involving a substitute county school bus driver. Prosecutor Jason Demastus said the victim, who was 15 years old at the time of the March 2015 incident, was in agreement on the plea and refused to testify against Alexander Rodriquez. Rodriguez, 34, last Thursday pleaded guilty to ... (click for more)

Make America Good Again - And Response

“No people can be great, who have ceased to be virtuous.”   Samuel Johnson (1709 – 1784) Last week I witnessed first hand the 2016 Republican National Convention in Cleveland, Ohio. As I observed the happenings within the Quicken Arena, the one theme that continued to pop up again and again, was  Make America Great Again .  Of course, that being ... (click for more)

Roy Exum: Keep Mike Carter’s Genius

Mike Carter, who has just been chosen as the “Best Overall” member of the Tennessee Legislature by a group known as the Tennessee Forum and “Legislator of the Year” by Citizens for Home Rule, is truly both. A lawyer and then a Sessions Court judge for 8 ½ years, he is overwhelmingly favored to win a third term during next Thursday’s election and rightly so. While it is laudable ... (click for more)