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Posts Tagged ‘Sen Bob Corker (R-Tenn)’

Galante’s Nomination to Head FHA Sent to Full Senate

December 14th, 2011 Comments off

NationalMortgageNews reports Republican Senators want the Obama administration to more forcefully strengthen the Federal Housing Administration (FHA) before confirming Carol Galante to head the agency. They also seek a plan for dealing with GSEs (government -sponsored enterprises) Fannie Mae and Freddie Mac. Sen. Jim Demint, (R-SC), leveling charges at Ms. Galante of being short-sighted at a Senate Banking Committee hearing on her nomination, says, “We need people with a sense of urgency about the need to turn things around and reduce our debt and avoid future bailouts.” Sen. Bob Corker, (R-Tenn.), says Galante is open to increases on insurance premiums, but current losses are coming from seasoned loans. The FHA does not think hiking insurance premiums on new, profitable loans is a good way to prevent the possibility of a bailout of the agency. On a $1.1 trillion portfolio of insured single-family loans, the latest FHA audit shows it has a 0.24 percent capital ratio. Sen. Richard Shelby, (R-Ala.), the ranking Republican on the Banking Committee, noting the Federal Housing Finance Agency (FHFA) is short of examiners to properly oversee the GSEs, says, “The longer we wait to reform our housing finance system, the larger these problems will grow and the solutions will become more expensive for the taxpayer.” Galante has been acting head of FHA since July, 2011. The Committee voted on party lines to send her confirmation to the full Senate.

(Graphic credit: FHA)

Senate Committee Sidetracked by CFPB Head Nomination

December 8th, 2011 Comments off

NationalMortgageNews reports a Senate Banking Committee hearing to discuss the work regulators are doing at six different agencies to implement Dodd-Frank became embroiled in an exchange about a seventh agency not in the room. Legislators sparred over the impending vote of Richard Cordray to head the Consumer Financial Protection Bureau (CFPB). Republicans want structural changes made to the agency, while Democrats blame Republicans for refusing to allow a vote on his nomination. Sen. Richard Shelby, (R-Ala.), asked Deputy Treasury Secretary Neal Wolin if the administration is seriously interested in discussing the issue. Wolin replied, “Well, I think, Senator, what we’re very interested in is the Senate considering Richard Cordray.” Sen. Bob Corker, (R-Tenn.), leveled a charge of political game-playing at Wolin. President Obama said, during a campaign stop in Kansas, “Everyday we go without a consumer watchdog n place is another day what a student, or a senior citizen, or member of our Armed Forces could be tricked into a loan they can’t afford—something that happens all the time.”
(Graphic credit: CFPB)

Senate Bill Would Downsize Fannie and Freddie in Ten Years

November 10th, 2011 Comments off

NationalMortgageNews states Sen. Bob Corker (R-Tenn.) has introduced legislation to wind down Fannie Mae and Freddie Mac’s share of the mortgage market to ten percent in ten years. The bill would go into effect six months after its passage. It also calls for the credit guarantee the GSEs provide mortgage backed security (MBS) investors reduced to 90 percent. “We are no closer to transitioning Fannie Mae and Freddie Mac off government life support than the day the firms were taken under direct government control in 2008,” Sen. Corker said. In a bi-partisan move, Sen. Kay Hagan (D-N.C.) and Sen. Corker are co-sponsoring a bill to create a covered bond market in the U.S., much like the ones in Europe. “The U.S. lags behind its global peers in the development of a covered bond market because we lack a legislative framework for issuers and investors,” Sen. Hagan said. “With a legislative framework in place, U.S. financial institutions will have a powerful tool that can be used to fund loans to small businesses and households.” Senators Chuck Schumer, (D-N.Y.) and Mike Crapo, (R- Idaho), also are co-sponsoring the covered bond bill.

(Photo credit: Wikipedia/Fannie Mae HQ Washington, D.C.)