Barney Frank is the one in the middle
Here we go again.
Perhaps there are still some Americans left who are not suffering from amnesia. Perhaps there are still a few Americans who remember that the whole mortgage debacle (that ruptured the housing bubble that began the global economic recession/depression) was triggered by the insolvency of Fannie Mae and Freddie Mac.
That, in turn, was due in no small part to Congressman Barney Frank (D-Massachusetts), in his capacity as chairman of the House Financial Services Committee, relaxing lowering the standards of FM²’s lending. Which resulted in the extension of mortgages to people who simply could not afford the houses they were buying. Which led to foreclosures galore as the grossly inflated home prices began to fall.
Now, Barney Frank — together with his accomplice-in-crime Anthony Weiner (D-New York) — is doing the same thing that got us into this mess in the first place. They are proposing “relaxing” FM²’s lending standards again!
“Those who do not learn from history are doomed to repeat it.” It’s been often observed that Americans have a short attention span and a woeful tendency toward historical amnesia.
If the American people don’t protest Barney Frank’s latest stunt and Congress goes along with this, America deserves to go down the tubes.
H/t to reliable GiovanniWorld member Steve!
~Eowyn
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Fannie, Freddie asked to relax condo loan rules: report
Mon Jun 22, 2009
http://www.reuters.com/article/GCA-Housing/idUSTRE55L39120090622
(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)
The federal government is so retarded. The repubs are letting these softball pitches sail right on by without even taking a swing. This attempt at and instant replay by (I shall not utter his contemptuous name) is a PERFECT opportunity for the opposition party to explain the real cause of the bubble and inevitably the crash.
Additionally, Obama’s proposed financial reform masterpiece includes provisions to further strenghthen the CRA – the core element of the methodology that has forced productive citizens to bailout mortgages that should have never been considered in the first place. Same game, with some different faces. Time to shovel millions to the next wave of corrupt tyrants.
This is insanity pure and simple!
The ones in Congress and in the White House that support this are scum. Those in Congress and the White House that do NOT fight this tooth and nail, are as bad as the ones perpetrating this hoax on the American people. Anotherwords, they too are scum.
Will anyone hold it against me if I tell you that I have lost all faith in my government?
Gio-
Not me…………you know how I feel about every last one of these power hungy, low life scumb%gs……….Out with every last one of them.!~!!!!!!
Steve
From one of my E-mail acquaintances:
“I don’t think it is amnesia. You cannot forget what you never knew.
Americans are ignorant of their government and how it works, nor are they interested in hearing about it.
The Americans are like cows, peacefully chewing their cud in the meadow, right up until the moment the truck comes to haul them to the slaughterhouse.”
-Glenn
Eowyn,
That’s one smart email aquaintance!
Gio-
Eowyn……………You know that explains alot. I / WE are so involved with this that we assume everyone else is aware. But they have no clue as to what’s going on around them……………..Happless Idiots, for lack of a better term. One the one hand it helps me to understand why these things are happening, But it still Irks me that people are so uninformed. The left have no idea either, they just say yes when barry says something. I don’t know if we can win this battle anymore. Not till midterms at least and then it will be to late. Mark my words……………..barry only get’s one term..We need Mitt or Rudy or somebody to start stumping now with our miss Sarah. We have no one person calling them out on these things.
What a bunch of MORONS! I swear, every day these idiots are doing all they can to break this country.
Back in 2005 SB 190 was introduced to reign in Fannie and Freddie (co-sponsored by McCain which he never mentioned on the campaign trail) that predicted an ecnomic crisis if it wasn’t controlled. Of course, the dems filibustered it. POS all of them!
Eowyn – that about sums it up. In speaking w/two friends last night they knew nothing of the cap and trade bill vote on Friday. Most people won’t realize the damage until it hits them square in the wallet, by then, too late.