Dems Want Freddie & Fannie Lending Rules Relaxed AGAIN!!

[red states rule]

Democrats, who created the first Freddie & Fannie meltdown, and the current economic mess we are currently in, want Freddie and Fannie to once again to "relax" lending rules.

Translation: Give loans to those who can't afford to repay



Fannie, Freddie asked to relax condo loan rules: report

(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.

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

[PostmodernProphet]

deja scru.....the feeling you've been fucked over this way before.....

[red states rule]

deja scru.....the feeling you've been fucked over this way before.....

I will be asking my liberal friend and co-worker today about this as we are driving to work

I will tell you right now what he will say - it will be either

"Well, we arr in a crisis and we have to and can spend our way out of this"

OR

"What about Mark Sanford???? So much for the party of family values"

He is a very loyal Dem, and has a habit of changing the subject when pinned down. What he never admit - or other libs - is "relaxing" lending rules is what got us in trouble in the first place

In his world, the only way to prevent another meltdown in housing causing the whole economy to collapse is too loan, loan, loan to people who may or may not be able to afford it

Economic policy and logic logic courtesy of Barack Obama and the Democrats