Barney Frank Wants Fannie Mae Standards Lowered… Again!
We all know that Rep. Barney Frank (D), Mass., had nothing to do with the 2008 housing crisis which led to the economic melt-down, even though numerous experts suggested he did.
Now it appears that Frank is once again not going to be responsible for meddling with federal mortgage backers Fannie Mae and Freddie Mac.
(Reuters) - Two U.S. Democratic lawmakers want Fannie Mae and Freddie Mac to relax recently tightened standards for mortgages on new condominiums, saying they could threaten the viability of some developments and slow the housing-market recovery, the Wall Street Journal said.
In March, Fannie Mae (FNM.N)(FNM.P) said it would no longer guarantee mortgages on condos in buildings where fewer than 70 percent of the units have been sold, up from 51 percent, the paper said. Freddie Mac (FRE.P)(FRE.N) is due to implement similar policies next month, the paper said.
In a letter to the CEO’s of both companies, Representatives Barney Frank, the chairman of the House Financial Services Committee, and Anthony Weiner warned that a 70 percent sales threshold “may be too onerous” and could lead condo buyers to shun new developments, according to the paper.
The legislators asked the companies to “make appropriate adjustments” to their underwriting standards for condos, the paper added.
In keeping with the new mood in Washington, I already declare him Not Going To Be Responsible.
http://www.reuters.com/article/GCA-Housing/idUSTRE55L39120090622
