Banking Queen Barney Frank asks for easier lending rules

[H.E. Pennypacker]

http://www.reuters.com/article/GCA-H...55L39120090622

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 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.

In addition to the 70 percent sales threshold, Fannie Mae will also not purchase mortgages in buildings where 15 percent of owners are delinquent on condo association dues or where one owner has more than 10 percent of units, as the firm sees these as signals that a building could run into financial trouble, the paper added.

Both Fannie and Freddie are preparing a response to the lawmakers, according to the paper.

Fannie Mae and Freddie Mac could not be immediately reached for comment by Reuters.

Are you kidding me?

[PocketProtector]

Ya just can't make this stuff up......Let's try again...this time it will be good ....LOL

Just like Stimulus was going to make all the jobs come back....Well..looks like Citibank and Goldmen Sachs are having record years.....So much for the little people.
Any Osheeple seeing through the smoke and mirrors yet???
Oh don't worry Cap & Trade and Global warming and health care legislation are all on the fastrack...Bend over and sqeeeeel !!

[Eugene V. Debs]

Banking "Queen" seems unnecessary-- what does his homosexuality have to do with this article?

[Robert Kayland]

Banking "Queen" seems unnecessary-- what does his homosexuality have to do with this article?

Absolutely! After all, let's be fair to royalty.

Next time, say "Hanes Grazer".



/all's fair in politics... especially when Franks himself uses his orientation to "make hay", as it were, among the constituents

[Posit]

Right... the mortgage crisis led to our present economic condition, and the "Banking Queen" chaired the House Financial Services Committee during that debacle. Let's be more than fair while he uses his position to influence mortgage standards established by those who may have learned a lesson. I mean, what the hell?

[tes151]

Banking "Queen" seems unnecessary-- what does his homosexuality have to do with this article?

That came from Rush Limbaugh. The song is hysterical.

[H.E. Pennypacker]

That came from Rush Limbaugh. The song is hysterical.

Glad someone got it. I guess we shouldn't expect Mr. Debs to listen to Rush Limbaugh.

[adymond]

Glad someone got it. I guess we shouldn't expect Mr. Debs to listen to Rush Limbaugh.

I don't listen to Rush often, but I have heard that song and it is pretty funny.

[ChamberedRound]

It's staggering to me that Barney Frank hasn't learned one bit from his mistakes. What will it take, a full-out apocalyptic collapse? I tend to fall on the free-market side of things, and typically shy away from government regulation, but doing so in an attempt to spend our way out of a recession will only make the problem worse. This guy is an idiot of the 1st order.

[dc dalton]

You know I can understand not knowing ancient history and not being able to use it and learn from the mistakes but for crying out loud this is the same god damned thing that helped put us into this mess and it only happened in the past 20 or so years. I mean how freaking blind can one be to not see the idiocy of something like this?

Frank is a moron in my book, always has been yet these idiots in MA keep voting him back in! I honestly can't think of one damn thing he EVER did that was worth a shit.