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Senate Proceeding on May 12th, 2010 :: 2:27:15 to 2:33:55
Total video length: 10 hours 56 minutes Stream Tools: Stream Overview | Edit Time

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Bob Corker

2:26:57 to 2:27:17( Edit History Discussion )

Bob Corker: quorum call: the presiding officer: the senator from tennessee. mr. corker: are we in a quorum call at present? the presiding officer: we are. mr. corker: i ask unanimous cons quorum call. the presiding officehout objection. mr. corker: mr. president, i appreciate the opportunity to come back down and speak on financial regulation.

Bob Corker

2:27:15 to 2:33:55( Edit History Discussion )
Speech By: Bob Corker

Bob Corker

2:27:18 to 2:27:38( Edit History Discussion )

Bob Corker: i think you know -- first of all, i want to thank -- i want to congratulate the presiding officer from colorado for being very successful yesterday in passing an amendment that i think is going to be good for our country. but, mr. president, i rise to speak about an amendment that i had earlier today, it was an amendment that i think was very common sense and i think gets at the hea of this financial

Bob Corker

2:27:39 to 2:27:59( Edit History Discussion )

Bob Corker: crisis. it didn't pass but it was an amendment to put in place underwriting standards to keep the kind of crisis that we just saw that happened in our country over the last couple of years from happening again. i think we all realize that the base of this crisis, which the

Bob Corker

2:28:00 to 2:28:21( Edit History Discussion )

Bob Corker: dodd bill does not address, at the base of this crisis was the fact we had a number of loans, large numbers of loans written around this country that people couldn't pay back. the underwriting standards were poor, credit was extended to people that couldn't pay the mortgages back and those were passed throughout the world and $600 trillion worth of notional value, derivatives, that were

Bob Corker

2:28:22 to 2:28:42( Edit History Discussion )

Bob Corker: based on, again, these underlying bad mortgages and so we created -- we had a systemic crisis, not only in this country but around the world. and so what i attempted to do with my amendment was to put some appropriate underwriting standards in place where everybody who purchased a home would have to put a 5% down payment.

Bob Corker

2:28:43 to 2:29:03( Edit History Discussion )

Bob Corker: 5% down payment. that if they borrowed more than 80% loan-to-value, there would have to be se credit enhancement up to 100% to ensure it, in fact, was a safe loan, that they had to ful document their income. what a breakthrough. they'd have to have -- they'd have to include their credit

Bob Corker

2:29:04 to 2:29:25( Edit History Discussion )

Bob Corker: history and employment history. and then we'd have to determine the borrowers' ability to repay, including consideration of their debt-to-income ratios. this was just a basic underwriting guideline. i think we know, again, at the base of this problem that we just went through was the fact that we had a lot of bad loans written. i had a number of democratic

Bob Corker

2:29:26 to 2:29:46( Edit History Discussion )

Bob Corker: colleagues come up after the vote and they said, or actually during the vote, and they said, i support what you want to do but the provision striking the 5% retention, which we did have in this same amendment, dealing with the securitization was what

Bob Corker

2:29:47 to 2:30:08( Edit History Discussion )

Bob Corker: kept me from voting for this underwriting amendment. i put that in there because i think most people looked at this, looked at the dodd proposal on 5% retention on securitization and realized that that created a problem, not a solution. and so i actually did that to draw people to our amendment. but since i had a number of

Bob Corker

2:30:09 to 2:30:29( Edit History Discussion )

Bob Corker: democrats, my friends, on the other side of the aisle come up and say that they would have supported it without striking the risk retention, i have now refiled that amendment, okay? and i have filed ? amendment. i'm now asking, let's have some standard underwrieling procedures in this country so

Bob Corker

2:30:30 to 2:30:51( Edit History Discussion )

Bob Corker: now that i've refiled that amendment, if it was the issue of risk retention on the securitization piece that kept you from coming onto this amendment, i've refiled it, and now i'm seeking on the other side of the aisle -- i'm seeking some cosponsors of this amendment. we had some great cosponsors this last time, senator gregg,

Bob Corker

2:30:52 to 2:31:12( Edit History Discussion )

Bob Corker: lemieux, coburn and brown, senator shelby also supported this amendment. we had johnny isakson from atlanta. he knows more about real estate lending probably understand that anybody here, who spoke on behalf of this amendment. but again to hear my friends on the other side of the aisle say, you know, i would have done this, but, you know that

Bob Corker

2:31:13 to 2:31:34( Edit History Discussion )

Bob Corker: risk-retention piece you had in there regarding securitization, it kept me from t so now i have a clean amendment that does nothing in that regard. it leaves that in place. but, again, it puts in place these underwriting standard. i had numbers of democrats come up and say, look, i agree with you. we ought to at least 5% now.

Bob Corker

2:31:35 to 2:31:57( Edit History Discussion )

Bob Corker: as a matter of fac i think we ought to have more. because i want everybody in this body to have the opportunity to vote for a good amendment, a und amendment, an amendment that really takes us away from country, which is we want to make sure that everybody is entitled, no it no longer is the american dream that someone owns

Bob Corker

2:31:58 to 2:32:19( Edit History Discussion )

Bob Corker: a home; it is an american entitlement. nobody saves. i shouldn't have said that. we've moved away from requiring that people save and show discipline to own homes. we've made it now so that, according to an amendment that passed earlier today -- the presiding officer put it in place, and i certainly respect what he tried to do with that.

Bob Corker

2:32:20 to 2:32:40( Edit History Discussion )

Bob Corker: but in essence what we did in that amendment was say, look, what you can to, to have proper underwriting, is you can borrow and pay over time. we'll let you put the down payment into the cost of the loan and over time. so, mr. president, i thank you for the opportunity to speak

Bob Corker

2:32:41 to 2:33:02( Edit History Discussion )

Bob Corker: today, because i have again -- so many friends on the other side of the aisle came up and said, "corker, i would have supported your amendment, but it had that one phrase in it about risk refengs. -- about risk retention." i've taken it out.

Bob Corker

2:33:03 to 2:33:24( Edit History Discussion )

Bob Corker: friends on the other side of the aisle smiling. i'm looking for my friends on the other side. it says that everybody will at least put 5% down. will have to be able to see their income. they'll have to document their income, will have to see that they can pay the loan back.

Bob Corker

2:33:25 to 2:33:46( Edit History Discussion )

Bob Corker: this will be a brand-new day nerc. my sense is that as the realtorscome to the hill today, my friends, they are my friends -- obviously they don't want any underwriting requiments because they want to make sure that loans go to everybody in america. okay?

Bob Corker

2:33:47 to 2:33:55( Edit History Discussion )

Bob Corker: i am thankful that my friends on the other side of the aisle have come to me today and said, corker, if only if.

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