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Just as he originally did for the housing market, disgraced Massachusetts Congressman Barney Frank now wants lending practices on condos relaxed in a similar manner.
Reuters reports on the continued government intervention into lending:
(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 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 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 an interview with the paper, Weiner said the rules have “had a real chill on the ability to get these condos sold,” at a time when prices of condos have fallen enough to attract potential buyers.
Once again, we have politicians trying to regulate the market which will inevitably lead to bad things, just like the housing bubble. Fannie and Freddie have become corrupt organizations used by politicians as leverage to their constituents of guaranteeing them home loans. Now Frank, the moron who defend Fannie and Freddie as they went down in flames, is sticking his nose in again to cause more trouble.
I have a suggestion, perhaps Barney Frank should take responsibility for his incompetence and resign, for the good of the country. God forbid Fannie and Freddie have tighter lending practices, perhaps we’ll avoid another real estate meltdown.
Once again, here are number of incompetent Democrats defending Fannie and Freddie a few years before the housing crash, the inexplicable Barney Frank included:
Pathetic. Washington needs to stay out of the free market for a change, that would truly be something new we haven’t seen in years.
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Shame on Massachusetts for electing such a man as Barney Frank! (Of course, I’m not referring to the CONSERVATIVE people in Massachusetts, but the state as a whole.)
I agree with you on this one Nate. This BS is pathetic. OK we ruin the housing market, now less ruin condo’s as well.
If people can not afford to BUY something, DONT F-ING BUY IT!!!
How hard is that to understand. Don’t give me this American dream BS either. The American dream is the ability to work and make enough money to own something, not just have things given to you without working!
I am all for the US being the place where basic human needs are expected and the government assist, if it’s competent, in making sure its citizens Basic Human Needs are met. Owning a home or a condo is certainly not a basic human need.
There is plenty of public housing, unfortunately, for those who do not make enough money, and they get a big ole house for free and their utilities paid. God forbid we ask this people to, like um, get a job, or at least an education while they are on public housing, so that when they graduate, they can afford child care and to BUY their own home.
I think we need to address debt in general in the U.S… it is pathetic the amount of debt that people carry on a personal level.
The reason why the failing banks had such a huge impact was because it effected everyone…Households and Businesses. Our entire economy is built on Credit!!!
That needs to change.
BREAKING NEWS!!!!!
http://www.theonion.com/c.....erformance
JD
“I think we need to address debt in general in the U.S… it is pathetic the amount of debt that people carry on a personal level.”
Yes. Feel free to mention Obama’s debt equal to all Presidents in history as well.
Personal debt is striking. Hint.
“The reason why the failing banks had such a huge impact was because it effected everyone…Households and Businesses. Our entire economy is built on Credit!!! ”
Why did financial institutions fail ? Did certain government people force loans for homes buyer not qualified ? Did government force lower standards ? Did regulators and Congress allow higher leveraging ? Did Congress facilitate economic breakdown of financial institutions ?
Banks was loaning money to people with no down payment, not checking job, etc. Do you think bank wanted to stand behind that loan ? Of course not. They knew F/F would buy that loan. Why ? Who guaranteed that ? Was there a law signed by Bill Clinton that led to this ?
Barney says he wants some of those responsible for our current financial meltdown to be prosecuted. And I couldnt agree more. First up to the dock: Rep. Barney Frank, D-Mass.
Bill,
I don’t think you understood the point of the comment you responded too. Debt in the US is not simply mortgage debt.
There are plenty of credit debts created outside of those given to people to buy homes.
I believe he meant that this country is built on credit, meaning so many people use credit rather than saving money to buy things. Homes, cares, home furniture and electronics, jewelry, clothing, ect.
Why do they do this? Because it’s easily and readily available to anyone who wants it. It’s not just home loans that should be denied, but credit in general. People need to learn to simply save money to buy things rather than get things on credit, lose their job, and have no way of repaying the debt.
Kendale Sturdivent
Yes, I understood.
Using his rational I wanted to point out government needs to do the same.