Corker, Warner Offer Jumpstart GSE Reform Amendment

Wednesday, November 18, 2015

In an effort to spur substantive and structural housing finance reform, Senators Bob Corker and Mark Warner (D-Va.), members of the Senate Banking Committee, on Wednesday offered the Jumpstart GSE Reform Act as an amendment to H.R. 2577, the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act.

The amendment would prohibit the sale of Treasury-owned senior preferred shares in government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac without congressional approval and also prohibit any increase in the guarantee fee – which is required to be charged by the GSEs – from offsetting other government spending.

“Although the FHFA is taking important steps to de-risk Fannie Mae and Freddie Mac, taxpayers will continue to be on the hook for a future bailout if Congress does not produce legislation to transform our housing finance system,” said Senator Corker. “There is overwhelming consensus that congressional action is needed, and it is hard to imagine that anyone would ever want to harm taxpayers and return to the failed model of private gains and public losses. While comprehensive reform is my preference, this amendment will ensure the future of Fannie and Freddie will be determined by Congress.”

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 the bailout, the U.S. Department of Treasury purchased senior preferred stock in the GSEs and was given sole discretion to sell or otherwise dispose of those shares.

Officials said, "There is broad bipartisan, bicameral consensus that the status of the GSEs prior to conservatorship was a failure and that the best way to prevent another bailout and protect taxpayers is through comprehensive housing finance reform. Furthermore, the Obama administration has made clear that they continue to believe comprehensive housing finance reform is the only effective way forward and have publicly rebuked calls by some activist groups to recapitalize Fannie Mae and Freddie Mac and release them from conservatorship."

This amendment will help ensure the ultimate resolution of Fannie Mae and Freddie Mac is determined by Congress, and it does not indicate which housing finance reform proposal should be adopted. Senators CorkerWarner, David Vitter (R-La.), and Elizabeth Warren (D-Mass.), introduced S.2038, the Jumpstart GSE Reform Act, in September.



Developers Sought For Former Coats American Property In Walker County

The Walker County Development Authority (WCDA) moved forward with plans this week to put the former Coats American property in Rossville on the market. The WCDA issued a Request for Proposals (RFP) from area business leaders and others to purchase the eight acre site. In addition to submitting a monetary offer, potential buyers should describe their plans for the property, ... (click for more)

Nathan Walldorf Of Herman Walldorf & Co., Inc. Earns The Seller’s Representative Specialist Designation

Nathan Walldorf of Herman Walldorf & Co., Inc. earned the Seller’s Representative Specialist (SRS) designation on Saturday, after completing the 12-hour SRS course work.  The SRS designation, recognized by the National Association of Realtors, is the premier credential in seller representation. It is designed to elevate professional standards and enhance personal performance. ... (click for more)

Prosecutor Says Brewer Was Driving 80 And Was High On Meth At Time Of Horrific Wreck At Ooltewah Exit; Defense Says There Is No Evidence Of Intoxication

A prosecutor on Monday told a Criminal Court jury from Nashville that Benjamin Scott Brewer Brewer was driving 80 mph, was high on meth and never hit his brakes when he caused an horrific wreck on June 25, 2015, at the Ooltewah exit of I-75. Crystle Carrior asked the jury to find Brewer guilty of six counts of vehicular homicide by intoxication, four counts of reckless aggravated ... (click for more)

Haslam Announces "Agressive, Comprehensive Plan" To End Tennessee's Opioid Epidemic

Joined by leadership from the House and Senate and Chief Justice Jeff Bivins, Tennessee Governor Bill Haslam on Monday announced an aggressive and comprehensive plan to end the opioid epidemic in Tennessee by focusing on three major components: prevention, treatment and law enforcement. TN Together is a multi-faceted initiative that addresses the issue of opioid addiction through ... (click for more)

General Bell: This Government Shutdown Is Outrageous - And Response

The day before yesterday two Army Apache Attack Helicopter pilots were killed in a crash during training at Fort Irwin, Ca.  The pilots and their unit were preparing for a future deployment to combat operations.    As a result of the government shutdown, none of the spouses or families of these pilots will receive a dime from the United States Government in immediate ... (click for more)

Roy Exum: Rebranding & ‘Culture’

My grandfather, who ran several very successful businesses, was a very astute fellow. I can’t tell you how many times he said, “The worst thing any salesman who calls on a business can say is, ‘I am here to save you some money.’ That’s not true -- In every instance they are in front of you hoping to make some money for themselves, else they would have never come by.” Another ... (click for more)