Corker Says There Is Broad Support To Wind Down Fannie Mae And Freddie Mac

Tuesday, April 29, 2014

Over five years after taxpayers footed a $188 billion bailout to rescue mortgage giants Fannie Mae and Freddie Mac, the Senate Banking Committee on Tuesday announced it will continue discussions and in the near future vote on the Housing Finance Reform and Taxpayer Protect Act (S.

1217), a bill introduced last year by Senator Bob Corker and Senator Mark Warner (D-Va.) and cosponsored by a bipartisan group of 10 senators.


“The work we’ve done to craft a bipartisan bill to strengthen our housing finance system is a model for what can happen when legislators put politics aside and come to the table committed to solving the big problems facing our nation,” said Senator Corker. “After a dozen hearings on housing finance reform, there is broad bipartisan support to wind down Fannie Mae and Freddie Mac to protect the American taxpayer from future bailouts. I appreciate Chairman Johnson and Ranking Member Crapo’s leadership throughout this process, and I look forward to continuing constructive talks to finalize the bill.”


In June 2013, Senators Corker and Warner introduced S.1217 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 market liquidity and protects taxpayers from future economic downturns.

In 2008, Fannie Mae and Freddie Mac were taken into government conservatorship and given a $188 billion capital injection from taxpayers to stay afloat. As a result of this bailout, the private market has almost completely disappeared, and so nearly every loan made in America today comes with a full government guarantee. Despite this unsustainable situation, there still has been no real reform to our housing finance system since the financial crisis, officials said.

In addition to Senators Corker and Warner, S. 1217 is currently cosponsored by Senators Mike Johanns (R-Ne.), Jon Tester (D-Mt.), Dean Heller (R-Ne.), Heidi Heitkamp (D-N.D.), Jerry Moran (R-Ks.), Kay Hagan (D-N.C.), Mark Kirk (R-Il.), Joe Manchin (D-W.V.), Saxby Chambliss (R-Ga.), and Mark Begich (D-Ak.), which includes five Republicans and five Democrats from the Senate Banking Committee.

Home Prices Up During The Summer

Home prices were up during summer across the nation in year-over-year  comparisons according to the  Greater Chattanooga Association of Realtors . With the economy on full mend, Federal Reserve Chair Janet  Yellen has predicted a fine-tuning of monetary policy before the year ends. In  tandem with the improved economy, the unemployment rate for ... (click for more)

Chattanooga Neighborhood Enterprise Develops First Tiny Home

Chattanooga Neighborhood Enterprise has just completed their very first “tiny” home – a 532 square foot, energy efficient dwelling in the Ridgedale neighborhood. The development of the tiny home is driven by public interest in smaller homes and the need for affordable housing in Chattanooga. The home is a market-driven approach to meet the city's affordable housing need as no ... (click for more)

Legislative Hearing On Volkswagen Emissions Scandal To Be Held In Chattanooga Oct. 29; Haslam To Visit VW Plant Wednesday

The Senate Finance, Ways and Means Committee’s Appropriation Subcommittee will be conducting a hearing in Chattanooga to review the financial impact on the state from Volkswagen’s violation of U.S. emissions standards. The meeting will be held at the Hamilton County Department of Education, 3074 Hickory Valley Road, on Thursday, Oct. 29, from 1:30-3:30 p.m.  Members ... (click for more)

Bradley County Commission Decides Not To Provide Animal Pickup Service

Bradley County Commissioners on Monday finally put animal control to rest. It was not easy and it was not without confusion, but in the end, the county will not provide animal pickup service. Confusion began when commissioners were asked to approve the agenda, which included two options for animal control pick up. Item “D” provided for the SPCA of Bradley County to pick ... (click for more)

VW PILOT Crash Landing

The Volkswagen emission scandal proves the point citizen activist, Ms. Helen Burns Sharp, has repeatedly brought to the attention of local government officials. She urged them to "beef up" the PILOT contracts before approving PILOT tax abatements. Any logical person would agree, because it is the only way to recoup a tax loss when unthinkable situations arise. Volkswagen's willful ... (click for more)

Roy Exum: VW’s Primer In Disaster

Volkswagen America has gotten into a real bad “tight,” causing their red-faced leaders to huddle with spin doctors, crisis consultants and countless priests in confessional booths. Conversely, I suspect I have found a solution that would get them out of the mud and hasten their return as one of the top automotive providers in the world. You see, on Aug. 14, 1979, the playbook on ... (click for more)