Senate confirms FHA chief
Published: Sunday, Dec. 30, 2012, 7:10 p.m.
WASHINGTON — Senators voted on Sunday to confirm the leader of the Federal Housing Administration, an agency that may need an infusion of taxpayer money next year for the first time in its history.
Carol Galante, the FHA's acting commissioner since mid-2011, was approved by the Senate on a 69-24 vote.
The FHA, a key source of mortgage funding for first-time home buyers and those with modest incomes, backs $1.1 trillion in home mortgages. Last month, it reported a projected shortfall of $16.3 billion because of souring loans that it insured during the housing market downturn.
Some Republicans argued she hasn't done enough to stem losses.
Galante “has denied the true severity of the problems at the FHA,” said Sen. Richard Shelby of Alabama, the top Republican on the Senate Banking Committee.
An independent audit suggested that the FHA would require taxpayer funding for the first time in its 78 years, though that won't be decided until February when the Obama administration releases its next budget.
In response to the shortfall, the agency raised the premiums it charges on guaranteed loans by one-tenth of a percentage point, adding, on average, about $13 to a borrower's monthly mortgage payment.
Sen. Tim Johnson, the Democrat who heads the Banking Committee, said Galante was well qualified and attributed the FHA's problems to legacy loans that were threatening the agency's finances.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Spyware in government computers ‘has Russian paw prints all over it’
- Deputy accused of illegal stops
- California man named as bitcoin creator denies involvement
- Miranda read to sex assault accuser, 14
- Border Patrol ordered to stop shooting at vehicles
- Kansas public school funding unconstitutional
- El Nino could bring relief to U.S.
- ‘Holy grail of guitars’ for sale in April auction
- Accuser takes stand during court-martial
- Traffic cameras rejected in Ohio ruling
- Nuke plant safety improving, watchdog says — with cautions