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.