Corker pressing amendment to prohibit increase in guarantee fees

Last week, Corker introduced bipartisan legislation that would not only prohibit use of the guarantee fee to offset other government spending but would prevent the sale of U.S. Treasury-owned senior preferred shares without congressional approval.

Corker, Mark WarnerMark Robert WarnerSenate panel moves forward with bill to roll back Dodd-Frank Comey back in the spotlight after Flynn makes a deal Warner: Every week another shoe drops in Russia investigation MORE (D-Va.), David VitterDavid VitterThe Senate 'ethics' committee is a black hole where allegations die Questions loom over Franken ethics probe You're fired! Why it's time to ditch the Fed's community banker seat MORE (R-La.) and Elizabeth WarrenElizabeth Ann WarrenOvernight Regulation: Net neutrality supporters predict tough court battle | Watchdog to investigate EPA chief's meeting with industry group | Ex-Volkswagen exec gets 7 years for emissions cheating Overnight Tech: Net neutrality supporters predict tough court fight | Warren backs bid to block AT&T, Time Warner merger | NC county refuses to pay ransom to hackers Avalanche of Democratic senators say Franken should resign MORE (D-Mass.), all members of the Senate Banking panel said they introduced the legislation to "spur substantive and structural housing finance reform."

The preferred shares were purchased by the Treasury during the 2008 financial crisis.

"If Treasury were to decide to sell its preferred share investment without Congress having first reformed our housing sector, we would just be returning to a time where gains are for private shareholders and losses are for taxpayers," Corker said. 

"I hope Congress will take the necessary steps to ensure housing finance reform can happen as soon as possible. said Corker. 

Warner said the broader bill would transition Fannie and Freddie out of their present roles. 

"The guarantee fee should not be mixed with other funding needs, and the preferred shares should be handled as one step within a multi-year process,” Warner said.

“It has been nearly five 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,” Warren said.