Capito Opening Statement at Financial Services Committee Hearing on FHA Actuarial Report

WASHINGTON – Rep. Shelley Moore Capito, R-W.Va., made the following opening statement this afternoon at the House Financial Services Committee hearing with HUD Secretary Shaun Donovan and other witnesses to address the financial soundness of the Federal Housing Administration and the recently released FHA Actuarial Report:

“Mister Chairman, thank you for holding this important hearing this afternoon on the financial health of the Federal Housing Administration. Last month, Ranking Member Bachus and I wrote you about the importance of having this hearing at the full committee level and I thank you for accommodating our request.

On November 6, 2009, we received the annual independent actuarial review of the Federal Housing Administration’s Mutual Mortgage Insurance Fund. The Congress had been warned by Housing Commissioner Stevens that this report would find that FHA’s Capital Reserve Account had fallen below the congressionally mandated reserve ratio of 2 percent. Unfortunately, the report found that it had fallen well below this level and now stands at .53 percent.

As we are all well aware, FHA has re-emerged as a major market participant insuring almost 30 percent of home purchases and 20 percent of refinances. FHA has a role to play in our housing market and if it is going to maintain this level of participation we must work together to ensure that the program remains self sustaining and returns to solid financial health.

I am encouraged by many of the steps Secretary Donovan and Commissioner Stevens have taken so far to shore up FHA and there is more to be done. I look forward to a vibrant discussion of whether or not FHA has the resources to upgrade technology and compete for experienced personnel to streamline their operations and improve efficiencies.

Secretary Donovan mentions in his testimony that FHA may be exploring raising premiums for new borrowers. In late 2007, FHA issued regulations to implement a risk-based pricing program. Yet, Congress implemented a moratorium through the HERA legislation which essentially preventing HUD from implementing any risk based pricing through October 31, 2009. Does HUD intend to implement a risk based pricing program once the moratorium expires? If the need to raise premiums on all borrowers is clear, why should we not have FHA price their premiums based on risk?

I would also like to hear more from the Secretary on stories that FHA borrowers are not able to make the first payment. It would be helpful to know the statistics on first-payment default rates. I know that the Secretary has indicated that he will be seeking greater recourse with lenders and I look forward to hearing more details on this proposal.

I want to welcome Secretary Donovan back to our Committee today. The FHA program is an important component of the housing finance market and Congress and HUD must do whatever is necessary to make sure that this program is run in a manner that does not expose the taxpayer to yet another bailout. I look forward to hearing from all our witnesses today on how best to ensure the future viability of the FHA program. Thank you Chairman Frank for holding this hearing and I look forward to hearing from our panels.”

Capito Statement on President Obama’s Afghanistan Address

WASHINGTON – Rep. Shelley Moore Capito, R-W.Va., released the following statement this morning in response to President Barack Obama’s address to the nation regarding his administration’s strategy for the ongoing conflict in Afghanistan:

“First and foremost, our men and women in uniform must know that we stand fully behind them and their mission. They‘ve made a commitment to prevent the spread of terrorism and work towards a stable Afghanistan, and it is critical that our government match their level of dedication.

“While any decision to send our service members into harm’s way is a difficult one, it has become increasingly clear that success in Afghanistan demands that our forces have further resources and manpower.

“As this process unfolds, however, it is critical that General McChrystal and his team of commanders have an appropriate opportunity to succeed. We must not be so quick to judge success or failure based on an arbitrary timeline that we draw premature conclusions about the effectiveness of this new strategy.

“As I have said before, our military efforts should be driven by the expertise of our generals on the ground who know the day to day demands of the mission, and not by the political winds of Washington.

“Put simply, I am encouraged by the President’s decision, but I urge him to let the facts on the ground – rather than a politically-driven timetable – guide our policy moving forward.”

A Couple of House of Delegate Races Worth Noting

Another election year will be upon us in a few weeks, which means that we need to start thinking about ways to start supporting candidates who will return government to the people.

Republicans will concentrate a lot of their donations and time on congressional races this year. We have a shot to get back at least one house of Congress and stop the runaway train that is Pelosi brand socialism. However we also need to think closer to home as well. For approximately eight decades the West Virginia State Legislature has been run by the Democrats. That party sees legislative power in the Mountain State as almost its own by divine right. Let's return West Virginia to two party rule.

I want to mention a couple of races that are important for the state GOP and me personally. I know both these people and believe that they will represent their districts and the state well when elected. I am proud to call them personal friends as well.

In the 41st Delegate district, Tommy Phillips will challenge for the seat currently held by the Democrat Samuel Cann. This district encompasses part of Harrison County. Tommy is a young, energetic, and bright man with youth and talent in his corner. He has served as Harrison County Executive Committee chair and has worked hard for the state party as well. If you are a donor interested in state politics, please consider helping out this candidate. He would make an outstanding delegate.

Of course in our own 49th, Bob Schadler is retiring after many years of faithful and hardworking service. I cannot think of anyone better to hold that seat than Gary Howell. Most of you know already that Gary is an aggressive and hard fighting individual with a talent for learning about the kind of legal and policy details that most folks overlook. A lot of people respect Gary's plain talking and blunt approach to tackling the problems faced by this region. His experience in policy research will prove invaluable to all Republican legislators. They currently have to rely upon a Democratic appointee or their own devices when researching law or policy when crafting their bills. Gary will serve as an important part of a state GOP legislative team that will fight to restrain government size, spending, and taxation in West Virginia. Since announcing his run for the House of Delegates, Gary's fundraising has far exceeded expectations very early in the campaign. This shows how serious Mineral County is about keeping this seat out of Democratic hands.

Of course there are many worthy candidates emerging all over the state. We need to support the viable and strong candidates as much as possible so that we can get the Legislature in the hands of a party that knows what West Virginia needs, more jobs and less government.

Private and Public Lives

Watching the Pitt game the other night (and congratulations to Bill Stewart, his staff, and the West Virginia Mountaineers for a tremendous victory), we couldn't help but to notice that every thirty seconds ESPN would feel the need to update its viewers on a mysterious car crash near Orlando.

By now most people know that the driver was legendary golfer Tiger Woods. His SUV careened off of a fire hydrant and hit a tree at 2 AM. Woods claimed that the accident caused injuries that required hospitalization and that his wife broke out the windows of his vehicle to free him. Woods offered to pay for the damage to city property and apologized for the mishap.

Obviously this story doesn't add up. On the other hand, why do we need all the facts here? Woods has no connection to the government and offered to repair the damage done to city property. CNN Hedline News's rabid group of pundits demand answers. Tiger Woods has the guts to stand up and say that his family remains none of their business.

The main loser in this whole scenario, besides the Woods family, is ESPN. Once again this network stooped to the lowest common denominator, even citing a National Enquirer story on their crawler. Yup, the same magazine that constantly has exposes on Obama's gay lovers and used to report incessantly that President Bush had an affair with Condoleeza Rice. ESPN ran out in front of a story that made you feel dirty for even reading about it on the bottom of the screen. It became obvious fairly quickly that we were seeing a domestic and private issue that all parties directly involved just wanted to forget.

Now what will happen? Probably photographers will follow Woods around until he beats one of them down with a golf club, then he looks like the bad guy. Tiger Woods' family life is no business of ours and has no greater impact on society. It is simply a story of gossip. The press wants to pry into their problems for the entertainment of those people who want to see a good and successful man and his family knocked down a peg.

And This Is What Thanksgiving Is All About

Hat tip to Pastor William Linhart, Calvary United Methodist Church. This shows the mindset of our Founding Fathers in the Continental Congress in the time of their most desperate fears. As our country enters increasingly troubled times, we ought to be mindful of these words.

O Lord our Heavenly Father, high and mighty King of kings, and Lord of lords, who dost from thy throne behold all the dwellers on earth and reignest with power supreme and uncontrolled over all the Kingdoms, Empires and Governments; look down in mercy, we beseech Thee, on these our American States, who have fled to Thee from the rod of the oppressor and thrown themselves on Thy gracious protection, desiring to be henceforth dependent only on Thee. To Thee have they appealed for the righteousness of their cause; to Thee do they now look up for that countenance and support, which Thou alone canst give. Take them, therefore, Heavenly Father, under Thy nurturing care; give them wisdom in Council and valor in the field; defeat the malicious designs of our cruel adversaries; convince them of the unrighteousness of their Cause and if they persist in their sanguinary purposes, of own unerring justice, sounding in their hearts, constrain them to drop the weapons of war from their unnerved hands in the day of battle!

Be Thou present, O God of wisdom, and direct the councils of this honorable assembly; enable them to settle things on the best and surest foundation. That the scene of blood may be speedily closed; that order, harmony and peace may be effectually restored, and truth and justice, religion and piety, prevail and flourish amongst the people. Preserve the health of their bodies and vigor of their minds; shower down on them and the millions they here represent, such temporal blessings as Thou seest expedient for them in this world and crown them with everlasting glory in the world to come. All this we ask in the name and through the merits of Jesus Christ, Thy Son and our Savior.

Amen.

Reverend Jacob Duché
Rector of Christ Church of Philadelphia, Pennsylvania
September 7, 1774, 9 o’clock a.m.