After Securing Commitment To Make Substantial FHA Reforms, Corker Says He Will Support Galante For FHA Commissioner

Tuesday, December 18, 2012

Senator Bob Corker, R-Tn., a member of the Senate Banking, Housing and Urban Affairs Committee, on Tuesday announced that after securing a commitment from Federal Housing Administration Acting Commissioner Carol Galante to make substantial changes to FHA underwriting requirements, he feels comfortable supporting her bid to become FHA commissioner.

Ms. Galante sent Senator Corker a letter Tuesday committing unequivocally to important reforms to be put in place by Jan. 31, 2013. A copy of the letter can be found here.

Senator Corker said, “I’ve been working closely with Secretary Donovan and Acting Commissioner Galante over the past few weeks on ways we can put FHA on sound financial footing. While this is only a first step, I am encouraged that Acting Commissioner Galante has committed to structural reforms that we both believe put FHA in a much stronger position. Given the reforms she is committed to, I believe that having an accountable commissioner with her resolve and expertise will be in the best interest of the taxpayer."  

Ms. Galante has committed to:

· Place a moratorium on the full drawdown reverse mortgage program to assess its viability after $2.8 billion in losses.

· Substantially increase underwriting criteria for borrowers with FICO scores between 580 and 620 by establishing a meaningful maximum debt-to-income ratio. This will dramatically decrease borrower default rates.

· Increase the down payment requirement and the insurance pricing for loans between $625,000 and $729,000 to protect FHA against loss on high balance loans that are outside Fannie and Freddie conforming loan limits. This will also help to scale back the government’s footprint in the housing market.

· Increase underwriting requirements for borrowers who have been foreclosed upon within the last seven years.

Senator Corker has continually expressed concerns over the pace of reforms at FHA, most recently raising several issues with Housing and Urban Development (HUD) Secretary Shaun Donovan at a December 6 banking committee hearing on the state of FHA’s financial condition. A transcript of the hearing can be found here.


Herman Walldorf And Company Realtors To Serve As Salvation Army Drop-Off Location

The Salvation Army’s Christmas presence is back downtown after a lapse of more than 30 years of always being at the corner of 8th Street and Broad Street, the old American National Bank plaza.  It has moved 1.5 blocks to 109 E 8th St., Herman Walldorf & Company Realtors for an easy ground floor drop off.   Walldorf, the oldest family name in Chattanooga real estate, ... (click for more)

Planning Commission Agenda For Monday

Here is the Planning Commission agenda for Monday: I. Opening Comments & Announcements (Chairman) II. Subdivision Plats & Variances Variances SD 2016-066 North Chattanooga Land Company Lots 67A and 67B-Lot Frontage, Lot Size, and Existing Structure Setback-626 Spears Avenue (City of Chattanooga District 1, Hamilton County District 6) STAFF: Approve ... (click for more)

City Administrator Lurone Jennings Suspended For Misallocation Of Funds

Rev. Lurone Jennings, administrator of City Youth and Family Development, has been suspended for one week for misallocation of funds. He also is to be issued a letter of reprimand and will undergo ethics training. The action came after a critical audit report from City Auditor Stan Sewell. It says Mr. Jennings transferred $18,500 of funds to a program, Journey Educational ... (click for more)

New Walker County Commissioner Whitfield To Move Public Meetings To Evenings And To Larger Venue; Will Also Be Listening Sessions

Walker County Sole Commissioner-Elect Shannon Whitfield said there will be a new arrangement for holding of public commissioner sessions when he takes place at the start of January. Current Commissioner Bebe Heiskell has held Thursday meetings at 3:30 p.m. from time to time in a conference room at her office near the Walker County Courthouse in LaFayette. Mr. Whitfield said those ... (click for more)

Roy Couldn't Possibly Be More Wrong - And Response (5)

Spreading false information isn't only harmful, as we've been made aware recently. The spread of false information can be outright dangerous.   Calling himself a Christian and all, Roy truly disappoints on so many levels with his recently opinion piece about black students attending predominately white schools being the cause of so much problems and grief at those schools. ... (click for more)

Roy Exum: The Facebook Starlet

The Pants Store, a toney women’s boutique in Birmingham’s Mountain Book community, held its annual Holiday Open House about a week or so and, as usual, the popular store was full of customers and holiday cheer. It was a festive gathering, fun for all, but as store employees cleaned up for the next day, they happened across an empty designer-shoe box and a brassiere somebody had ... (click for more)