Senate confirms Galante as FHA chief despite losses

The U.S. Senate on Sunday confirmed the head of the Federal Housing Administration in her position despite mounting losses the mortgage funding agency that some fear could eventually lead to a taxpayer bailout.

In a 69-24 vote, the Senate confirmed Carol Galante as an assistant secretary of the Department of Housing and Urban Development. Galante, a former affordable housing developer in San Francisco, had been running the FHA in an acting capacity since July 2011.

Republican Senator Bob Corker, who had been one of her biggest critics, publicly dropped his opposition to her confirmation after she sent him a letter pledging to take certain steps to improve the agency’s finances, including tightening lending standards for buyers with lower credit scores and limiting the amount of money that could be borrowed in the FHA’s reverse-mortgage program.

Reuters / Toledo Blade

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