(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.
I'm starting to believe the foreigners who say Americans are the stupidest people in the world... How else can you explain why Barney Frank gets re-elected over and over and over?
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Hope they know what they are doing though, as previous gov't meddling (dems & reps) probably caused the current situation. I'm sure these guys are getting pressure from somewhere (ie. condo builders) to make this happen... sigh.
well I kind of agree with the one part. It is stupid to not give loans on new condo's until 70% are sold. If everyone did that, well then they would never reach 70%. I saw him on the o'reilly factor yesterday, and they had a somewhat cordial conversation. Frank said they would keep the restrictions as far as the people still needing to be able to afford the loan, but it's kind of stupid to only allow loans when 70% are sold already. The 70% rule will kill new complexes.
Regardless I do loathe Barney Frank, he is an idiot, but he may be correct on this one.
Originally Posted by ManicSquirrel[Only Registered Users Can See LinksClick Here To Register]
well I kind of agree with the one part. It is stupid to not give loans on new condo's until 70% are sold. If everyone did that, well then they would never reach 70%. I saw him on the o'reilly factor yesterday, and they had a somewhat cordial conversation. Frank said they would keep the restrictions as far as the people still needing to be able to afford the loan, but it's kind of stupid to only allow loans when 70% are sold already. The 70% rule will kill new complexes.
Regardless I do loathe Barney Frank, he is an idiot, but he may be correct on this one.
WHy would it kill new complexes? It is not that people can not get loans for condo's it is those loans can not be backed up by freddie and fannie. The only people that need that backing are people that are not the best risk in the first place. That lowers the risk of the other property owners from having a bunch of empty units thus devaluing their homes.
Originally Posted by ManicSquirrel[Only Registered Users Can See LinksClick Here To Register]
well I kind of agree with the one part. It is stupid to not give loans on new condo's until 70% are sold. If everyone did that, well then they would never reach 70%. I saw him on the o'reilly factor yesterday, and they had a somewhat cordial conversation. Frank said they would keep the restrictions as far as the people still needing to be able to afford the loan, but it's kind of stupid to only allow loans when 70% are sold already. The 70% rule will kill new complexes.
Regardless I do loathe Barney Frank, he is an idiot, but he may be correct on this one.
Loans are still available, Fannie and Freddie just don't buy them on the secondary market until the condos are 70% sold... Big difference.
Many lenders don't sell their loans to Fannie and Freddie.
Barney Frank just needs to be kicked out of office.
He's an idiot that believes we should have a huge socialist, cradle to grave government.
And the Dems will paint anyone opposed to this as being elitist and against opportunities for low income people.
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Originally Posted by Al Bundy's Friend Griff[Only Registered Users Can See LinksClick Here To Register]
WHy would it kill new complexes? It is not that people can not get loans for condo's it is those loans can not be backed up by freddie and fannie. The only people that need that backing are people that are not the best risk in the first place. That lowers the risk of the other property owners from having a bunch of empty units thus devaluing their homes.
apparently I misunderstood or wasn't paying enough attention
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Barney Frank asking Fannie and Freddie to lower lending standards again
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