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06-24-09, 11:13 PM #1
Rep. Barney Frank wants Fannie Mae and Freddie Mac to lower lending standards for condo buyers. Because only good things can come from this...
Back when the housing mania was taking off, Massachusetts Congressman Barney Frank famously said he wanted Fannie Mae and Freddie Mac to "roll the dice" in the name of affordable housing. That didn't turn out so well, but Mr. Frank has since only accumulated more power. And now he is returning to the scene of the calamity -- with your money. He and New York Representative Anthony Weiner have sent a letter to the heads of Fannie and Freddie exhorting them to lower lending standards for condo buyers.
You read that right. After two years of telling us how lax lending standards drove up the market and led to loans that should never have been made, Mr. Frank wants Fannie and Freddie to take more risk in condo developments with high percentages of unsold units, high delinquency rates or high concentrations of ownership within the development.
Fannie and Freddie have restricted loans to condo buyers in these situations because they represent a red flag that the developments -- many of which were planned and built at the height of the housing bubble -- may face financial trouble down the road. But never mind all that. Messrs. Frank and Weiner think, in all their wisdom and years of experience underwriting mortgages, that the new rules "may be too onerous."
And in a display of the wit for which Mr. Frank is famous, the letter writers slyly point out that higher lending standards won't reduce taxpayer exposure to bad loans because the Federal Housing Administration has even lower standards for condos. "While the underlying goal may be to reduce taxpayer exposure relating to the current conservatorship of the GSEs [government sponsored entities], such a goal would not have such an effect if it merely results in a shifting of loans from the GSEs to the FHA." Tougher lending standards will merely shift market share from one government program to another, so what's the point in being cautious?
Fannie and Freddie have already lost tens of billions of dollars betting on the mortgage market -- with that bill being handed to taxpayers. They face still more losses going forward, because in the wake of their nationalization last year their new "mission" has become to do whatever it takes to prop up the housing market. The last thing they need is lawmakers like Mr. Frank, who did so much to lay the groundwork for their collapse, telling them to play faster and looser with their lending standards.
Fannie and Freddie have always been political creatures under the best circumstances. But we don't remember anyone electing Mr. Frank underwriter-in-chief of the United States.
06-24-09, 11:14 PM #2
And why the fuck haven't the majority of voters in Massachusetts voted this fat asshole out of office yet???
06-25-09, 12:08 AM #3
Barney is in favor of anything that has to do with the fanny, if you know what I mean!For the morning will come. Brightly will it shine on the brave and true, kindly upon all who suffer for the cause, glorious upon the tombs of heroes. Thus will shine the dawn.
06-25-09, 12:24 AM #4
Can O'Reilly go off on him again just for the hell of it?
Damn, this Representative has been in office since 1982. you would think it is time to retire.
Some of the residents of Massachusetts are probably afraid to vote him out of office because he might play the Gay and the Jew cards. No wonder why Massachusetts is so screwed up. It's the California of the East Coast. And it is not just because he is Gay or Jewish. It is him.
Who knows, probably the same reason why California keeps re-electing Pelosi, Boxer and Feinstein.
Choose The Right. When you're doing whats right, then you have nothing to worry about.
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In memory of Sgt. Howard K. Stevenson 1965 - 2005. Ceres Police Dept.
In memory of Robert N. Panos 1955 - 2008 Ceres Police Dept.
06-25-09, 01:14 AM #5
He needs to go. Besides, he talks like his mouth is full all the time anyway.Only two defining forces have ever offered to die for you, Jesus Christ and the American G.I.
One died for your soul, the other for your freedom. ~ Anon
si hic carrus commovet non quaerete
RIP Scott L. Roth- Pfc 1st Platoon,401st MP Co, KIA 12/20/89- Operation Just Cause- Not forgotten.
06-25-09, 04:09 AM #6
Isn't this what started this whole economic mess we are in now?dlefdal said:
Ummmm, what if I don't like thumbs in my butt?
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