Barney Frank wants Freddie and Fanny to relax mortgage rules again.

[GaryC 7]

Fannie, Freddie asked to relax condo loan rules: report

Mon Jun 22, 2009 10:48am EDT

(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 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.

http://www.reuters.com/article/GCA-Housing...E55L39120090622

[Down With PMP 0]

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 ...

Loosening this is a bad idea. Those good assets could go bad easy.

[Ban Hammer 13,333]

the best thing that can happen to the housing industry is barney frank is booted out of office.

[Danno 1,228]

How does this guy still have a Job in Washington, can anyone think of a single other person whose action led to the policies which started and feed this banking crash?

[Pooky 3,781]

Tighten regulations - the Democrat creed since the election!

Except when it concerns Barney Frank's pet financial institutions, when tighter regulation, which might prevent such an upfvck in the future, will prevent them cornering the market. Funny how there's one rule for some and another for Barney's friends.

Barney Frank, another in the Nancy Pelosi mold of politicians who need to STFU and disappear and let President Obama get on with the job of governing.

[scandal 951]

How does this guy still have a Job in Washington?

Um, coz the residents of his district voted for him?

Little thing we have here called representative democracy.

It's good to have a proud ####### in politics. Keeps all the homophobes from crossing the line.

I think hith ghey lithp thing ith way cool, anyway

[Danno 1,228]

How does this guy still have a Job in Washington?

Um, coz the residents of his district voted for him?

Little thing we have here called representative democracy.

It's good to have a proud ####### in politics. Keeps all the homophobes from crossing the line.

I think hith ghey lithp thing ith way cool, anyway

Let me try again

1. How does a guy whose promoted policies cost his constituents so much loss of personal wealth still have a job in DC? (what the hell if da matter with those people?

2. How does this guy still sit in a chair which has anything to do with these matters... ever again?

(why have not his fellow Dems put him in charge of something less... important?)

3. That lisp is golden.... talk about a stereotype.

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[AlHayatZween 2]

everything just stinks.