NET LIFE Financial Will Address US Senate Banking Committee

WASHINGTON - July 22, 2014 - PRLog -- NET LIFE Financial will be addressing the US Senate Banking Committee in proceeding with NET LIFE’s promise to revamp and revitalize the US Mortgage and Banking industry.

NET LIFE’s first major step is making its LCMO® and LCDO® products available to the US Senate Banking Committee and to Senators Bob Corker and Mark Warner whom have proposed THE CORKER-WARNER HOUSING FINANCE REFORM AND TAXPAYER PROTECTION ACT (S. 1217).

Mr. Daniel Kramer, Director of Government Relations, states, “The Corker-Warner Act mirrors the business model and make-up of NET LIFE Financial and its LCMO® and LCDO® products; it was simply a matter of time before NET LIFE and the US Senate Banking Committee or one of its Committees or Committee Members got together with NET LIFE.  The concept of The Corker-Warner Act and NET LIFE's LCMO® and LCDO® products are proven formulas and the only viable direction for mortgages, the housing market and overall consumer credit going forward.”

According to Senator Corker’s website http://www.corker.senate.gov/public/index.cfm/housing-fin...: “The Corker-Warner Housing Finance Reform and Taxpayer Protection Act (S. 1217), introduced on June 25, 2013, would strengthen America’s housing finance system by replacing government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac with a privately capitalized system that preserves market liquidity and protects taxpayers from future economic downturns.

In 2008, Fannie Mae and Freddie Mac were taken into government conservatorship and given a $188 billion capital injection from taxpayers to stay afloat. As a result of this bailout, the private market has almost completely disappeared, and so nearly every loan made in America today comes with a full government guarantee.  Despite this unsustainable situation, there has still been no real reform to our housing finance system since the financial crisis.

The Housing Reform and Taxpayer Protection Act, S. 1217:

-          Winds down Fannie Mae and Freddie Mac within five years;

-          Transfers appropriate functions to a government utility, the Federal Mortgage Insurance Corporation (FMIC), which is modeled in part after the FDIC, to provide catastrophic reinsurance behind 10 percent first-loss, private capital;

-          Charges FMIC to maintain an insurance fund with a minimum reserve balance of 2.5 percent of the outstanding balance of covered securities as a catastrophic backstop that would only be utilized in the event that the 10 percent first-loss private capital is completely wiped out;

-          Removes shareholders from the government utility, but renews competition and innovation by chartering market-capped, private risk-sharing institutions; and

-          Ensures that community banks and credit unions have direct access to the secondary market and equitable pricing with larger originators.”

NET LIFE Financial will be offering its LCMO® and LCDO® product models and institutional support to aid in the passing and immediate implementation of The Corker-Warner Housing Finance Reform and Taxpayer Protection Act (S. 1217).  Mr. Kramer further stated, “It is our firm belief, should The Corker-Warner Act pass, in conjunction with the proposed general terms and conditions of the Act and NET LIFE’s LCMO® and LCDO® products, the Act will immediately impact the mortgage, housing and consumer credit industries, thereby, making mortgages affordable and immediately available to the American home-buyer regardless of “perfect credit”.  Additionally, any and all previously defaulted mortgages or mortgages currently in default, either held or originated by Freddie, Ginnie or Fannie or other public or private entities, can be quickly converted to conforming mortgages, thereby, allowing current homeowners to remain in their homes or obtain re-financing.”