Corker Says FHFA Should Not Hinder Congressional Housing Finance Reform Efforts

Thursday, May 11, 2017
During a hearing today on the status of our nation’s housing finance system after nine years of conservatorship, Senator Bob Corker pressed Federal Housing Finance Agency (FHFA) Director Mel Watt to explain how a draw on government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac’s line of credit at the Department of Treasury could disrupt the mortgage market, calling it a “baseless” argument. Corker also warned Watt against any unilateral action that would hinder or slow congressional efforts to reform the entities.

“[Fannie Mae and Freddie Mac] have $258 billion worth of capital available to them,” said Senator Corker. “This whole notion of them running out of resources is just a baseless issue, and I don’t know why that, even at this time, is being discussed because what it does, [Mr. Watt], is it changes the dynamic of what’s been happening. It makes it appear as if there’s a different approach that’s being taken by the [Trump] administration. The administration is working with us. We’re working with others to move ahead with reform, but all of a sudden, a unilateral step by you when they’ve got $258 billion in capital available… If you draw upon it – that’s what it’s for, by the way – it in no way effects the credit or anybody’s perception of the securities that are being put out.”
In response to a claim by Mr. Watt that a draw from the $258 billion credit line could interrupt the market, Corker said that the risk is “nonexistent” and that a draw would have no effect on the market.
“It’s one of the most baseless arguments I’ve ever heard,” said Senator Corker.
Senator Corker also pressed Mr. Watt to acknowledge that it is the role of Congress, not FHFA, to determine the future of the GSEs.
“It’s your belief, as we’ve discussed in multiple conversations, that the future of housing finance reform is totally Congress’ job to do, and you’re relying upon us to make that happen,” said Senator Corker. “It’s my sense that the [Senate Banking Committee] Chairman [Mike Crapo] and Ranking Member [Sherrod Brown] wish to take that up in the near future. And from your perspective that’s our job to do, and that’s how we determine the future of these entities?”
“I absolutely agree,” said Mr. Watt.

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)

Chattanooga's Compass Auction Featured In Magazine For Handling 2 Big Auctions

Chattanooga-based Compass Auctions & Real Estate was featured in Auctioneer magazine for handling two big auctions successfully in 2017. The article says, "Despite two very different sellers with extremely different assets, NAA Pro Paige Holt and her team at Compass Auctions & Real Estate, a Chattanooga, Tn.-based auction and real estate company, accomplished two massive ... (click for more)

Ivy Johnson, 23, And Cordarrius Johnson, 26, Shot Early Sunday Morning On Lillian Lane

Ivy Johnson, 23, And Cordarrius Johnson, 26, were shot early Sunday morning.   Chattanooga Police were notified at 4:39 a.m. of two people arriving at a local hospital with gunshot wounds. Upon arrival, police spoke with the two victims who were suffering from non-life threatening gunshot wounds. The victims arrived at the hospital via personal vehicle.   ... (click for more)

2 Top Officials Leave Administration Of Sheriff Eric Watson

Bradley County Sheriff Eric Watson on Sunday announced the resignations of Chief Deputy Brian Smith and Director of Administrations Arnold Botts. He said they "served with distinction for the past four years." The Sheriff's Office said, "Smith notified Sheriff Watson that he is exploring business opportunities in the private sector, while Botts mentioned the timing was right ... (click for more)

DACA Or Amnesty To Become The Majority?

As we have the political drama that we see in D.C. let’s be honest about what DACA is all about. We understand as the liberal policies of abortion, dependency on the government and an anti-American globalist / progressive agenda that many have come to realize these policies no longer represent their core beliefs and have left a certain party. Without an influx of new dependency ... (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)