The Senate confirmed President Obama’s July 2011 nomination of Carol Galante to be Assistant Secretary for Housing and Federal Housing Administrator on December 30 by a vote of 69 to 24.Ms. Galante faced criticism from some Senators who are concerned about the fiscal health of the Federal Housing Administration (FHA), which was set up to be a self-supporting agency but may need federal financial backing due to losses realized by its products, including insurance on single family loans. Ms. Galante’s nomination was approved by the Senate Committee on Banking, Housing and Urban Affairs in December 2011 (see Memo, 12/16/11) despite a report then that Senator Bob Corker (R-TN) had threatened to place a hold on her nomination on the Senate floor.Republican Senators also expressed concerns about FHA’s business products and protocols at a December 6, 2012 hearing of the Senate Committee on Banking at which HUD Secretary Shaun Donovan assured committee members HUD was working aggressively to protect the FHA. On December 18, 2012, Ms. Galante sent a letter to Senator Corker listing four major reforms to FHA products and business protocols the FHA is undertaking to address criticisms raised by the Senator. Senator Corker was the only Republican member of the Banking Committee who voted for Ms. Galante’s nomination on the Senate floor. Two Republican members did not vote, and the rest opposed the nomination.Click here to view the December 18 letter.