Barney Franks asks Fannie Mae & Freddie Mac to loosen lending standards – AGAIN? Isn’t that what created all the toxic debt which caused the recession we are in now???
- 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.
So much for prudent fiscal practices? or responsibility….
HOW is Mr. Frank still on the Financial Services Committee let alone the chairman?!