Et Tu, Brute? Corker Fundraiser/Donor Savages Corker-Warner GSE Reform Bill

Confounded Interest ^ | 11/21/2013 | Anthony B. Sanders

[whitedog57]

Today, the US Senate held a hearing on “Housing Finance Reform: Powers and Structure of a Strong Regulator.” If I had been testifying, I would have thrown in a Medal of Freddom for Edward DeMarco, the acting Director of the Federal Housing Finance Agency (FHFA), the regulator for Fannie Mae and Freddie Mac.

But alas, the panel that spoke today were largely regulators and/or attorneys. But the most interesting aspect of the hearing was what happened AFTER the hearing.

Tim Pagliara, the CEO of CapWealth Advisors and longtime fundraiser/donor for US Sen. Bob Corker (of the infamous Corker-Warner housing reform bill) released the following on-the-record statement:

“Today’s US Senate hearing on housing finance reform continues to illustrate how the Corker-Warner legislation is the wrong plan at the wrong time. We don’t need that kind of residential ObamaCare. Fannie Mae and Freddie Mac are working and profitable again and full of institutional knowledge that would be destroyed if liquidated. They can be further rehabilitated with a capital cushion and strict underwriting, while still protecting shareholder rights. I hope Senators Corker and Warner will reconsider.” – Tim Pagliara, CEO of CapWealth Advisors

This is very similar to what I wrote yesterday.about housing finance and healthcare reform. That is, the Federal government requiring citizens to purchase something they may not want.

Pagliara hit the nail on the head about Corker-Warner. Why shut down Fannie Mae and Freddie Mac if the replacement is at best equal and at worst worse? Remember, Corker-Warner shuts down Fannie Mae and Freddie Mac and replaces them with a new government insurance company, the Federal Mortgage Insurance Company. In other words, replace TWO giant insurance companies with ONE humongous government insurance company.

And Corker-Warner comes complete with affordable housing goals, the same thing that helped kill Fannie Mae and Freddie Mac in the first place.

affordgoals (1)

If Corker-Warner proposed real reform like the House PATH bill or even better, a PATH bill without any government involvement, I would support the reform. But Corker-Warner is more like something from the Roman Empire (reform in name only). Bread and circuses housing policy.

Et tu, Brute?

Cesar-sa_mort

[whitedog57]

Corker-Warner housing finance reform IS the Obamacare for housing.