[Chongo]

Reps Frank and Weiner want Fannie and Freddie to relax rules for lending on Condos. I wonder who Frank will blame if the condo market implodes from bad loans.
Fannie, Freddie asked to relax condo loan rules: report | Reuters

(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.

(Reporting by Chakradhar Adusumilli in Bangalore; editing by Simon Jessop)

[Big Mac]

Wow, he is truly incorrigible. That's like Bernie Madoff creating a new hedge fund.

[stupendousman]

It will be the Republicans fault, because years ago they didn't want as much regulation on something not related.

This guy is truly shameless.

[hyteckit]

Conservatives/Republicans for more regulation?

[stupendousman]

Originally Posted by hyteckit 

Conservatives/Republicans for more regulation?

...of stuff that actually causes problems and endangers taxpayer dollars?

Sure, as always.

[turtle777]

Barney is such a f***ing retard.

-t

[finboy]

Originally Posted by hyteckit 

Conservatives/Republicans for more regulation?

No, not more regulation, just NO MORE SUBSIDIES of that industry from Freddie/Fannie. See, when Freddie/Fannie target something, it becomes more popular. Why? Because they're backed by the govt. Or at least the market "thought" they were backed by the govt. (according to the rates they paid on their own bonds). So... if they do risky stuff, not only is it backed by taxpayers (explicity, now) but it also encourages people to do MORE STUPID RISKY STUFF.

If that's regulation, now, then welcome to 1984.

[ctt1wbw]

Still think my five spot on him croaking is classy? This guy is a pile of **** and I'm gonna dance the jig the day he passes on.