Senators Corker, Warner, Vitter, And Warren Reintroduce “Jumpstart GSE Reform Act”

Wednesday, September 16, 2015

In an effort to spur substantive and structural housing finance reform, Senators Bob Corker, Mark Warner, David Vitter, and Elizabeth Warren, all members of the Senate Banking, Housing and Urban Affairs Committee, on Wednesday reintroduced the “Jumpstart GSE Reform Act.”

 

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

 

“There is an overwhelming bipartisan, bicameral consensus that congressional action is needed to reform our housing finance system and it is hard to imagine that anyone truly wants to return the GSEs to the failed model of private gains and public losses,”said Senator Corker. “While comprehensive reform is my preference, we must not allow a small minority to prevent us from making any progress at all. I will continue to look for ways to move us closer to a long-term solution for our housing finance system and am pleased to have Senators Warner, Vitter, and Warren join me in this effort.”

 

“Given Fannie and Freddie’s significance to our housing market, any decision about their future should be based on bipartisan policy goals that have been reviewed and approved by Congress,” said Senator Warner. “It’s been seven years of limbo and volatility since the GSEs were taken into conservatorship. It’s time for Congress to act on a long-term solution for our housing finance system.”

 

“As my colleagues and I reintroduce this broadly bipartisan legislation, momentum is certainly building to ensure that Fannie Mae and Freddie Mac are not turned loose to wreak havoc on the economy and taxpayers in their current form,” said Senator Vitter. “I’m confident that when it reaches the floor, there will be an overwhelming show of bipartisan support for this common sense, reform legislation.”

 

“It has been nearly seven years since the financial crisis, and it is past time to reform Fannie and Freddie. That means removing the obstacles and starting a bipartisan effort to take on housing finance reform this Congress. I am pleased to have the opportunity to work with Senators Corker, Warner, and Vitter, and I look forward to collaborating with them and other Senators in the months ahead on this important issue,” said Senator Warren.

 

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 the Treasury purchased senior preferred stock in the GSEs and was given sole discretion to sell or otherwise dispose of those shares. There is broad agreement that the status of the GSEs prior to conservatorship was a failure and the best way to prevent a repeat and protect taxpayers is through comprehensive housing finance reform. Officials said, "This legislation 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." 



Martha Alexander Joins RE/MAX Properties As New Affiliate Broker

Martha Alexander has joined RE/MAX Properties as the newest member of its sales team. Ms. Alexander has been in the real estate business since 2004.  She has been a RE/MAX affiliate broker since 2007.  Originally from Houston, she moved to Chattanooga in 1992.  She describes Chattanooga as a “permanent  staycation” because of all of its offerings and ... (click for more)

Moxy Hotels Set to Debut Its Spirited Hotel Experience In Chattanooga's Southside This Fall

Moxy  Hotels , a hotel brand of Marriott, on Wednesday announced the upcoming debut of Moxy Chattanooga in Fall 2018, promising to shake up the traditional hospitality experience for the city’s millennial-minded traveler. Developed by  3H Group Hotels  and centrally located in Chattanooga’s exciting Southside, Marriott International's playful, experiential Moxy ... (click for more)

Red Bank Approves Short Term Vacation Rental Ordinance On Final Reading

The Red Bank Commission passed an ordinance Tuesday night on second and final reading that regulates short term rentals within the city. "Our hands have been tied because of state law," said Mayor John Roberts. Many residents, both for and against allowing these rentals, have come to recent commission meetings appealing to the commissioners for their side of the issue, ... (click for more)

Firefighters Battle 2-Alarm Fire On Workman Road Tuesday Morning

Chattanooga firefighters were dispatched at 6:03 a.m. on Tuesday, to a commercial fire at 400 Workman Road. When the first firefighters arrived on the scene, flames were shooting through the roof and the request was immediately made for a second alarm response. The flames could be seen for miles as a total of 13 fire companies rushed to the scene. The large, two-story ... (click for more)

Bill Lee Is Great For Tennessee

I had the opportunity to meet Bill and Maria Lee at the grand opening of his Chattanooga Campaign HQ. He delivered, what was by most accounts, a showstopper speech at the Statesman’s dinner in Nashville the night before. He and Maria should have been worn out, but if they were, they really showed very little sign of it. His energy level, for a guy that couldn’t have gotten more ... (click for more)

A Successful East Ridge Bake Sale

Saturday's event at the Camp Jordan Pavilion was nothing more than extraordinary, if not history making.  Alongside the threatening eminent domain letters the citizens of East Ridge received, a Union was formed amongst the East Ridge Police Department.  Coming to City Council the night of April 26, I had only one thing I was focused on: eminent domain.  ... (click for more)