Corker-Warner bill a triple threat to recovery, trio says

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 · centrahealthcare.com Supporters of Corker-Warner point to the requirement for a 10 percent private, first-loss provision as protection against taxpayer loss. On the contrary, such a provision invites weakening over time and leads to political manipulation of the markets which will inevitably result in ever more risky mortgages.

The Corker-Warner bill does a creditable job certainly the best of any current proposal for a government-backed system in insulating the taxpayers from risk. But Congress has to face the fact, made plain by what happened with Fannie Mae and Freddie Mac that any plan in which the government covers "catastrophic losses" is fatally flawed.

Corker-Warner bill a triple threat to recovery, trio says Urge lawmakers not to repeat the mistakes of the past

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