Repeating History

Looks like Reps. Barney Frank and Anthony Weiner want both Fannie Mae and Freddie Mac to loosen lending standards for condos.

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.

Just another example of the failure of the market. When will we just be done with this silly market thing and switch over to a command-and-control economy with politicians in charge?

Via Radley Balko.

FILED UNDER: Bureaucracy, Economics and Business, , , , , , , ,
Steve Verdon
About Steve Verdon
Steve has a B.A. in Economics from the University of California, Los Angeles and attended graduate school at The George Washington University, leaving school shortly before staring work on his dissertation when his first child was born. He works in the energy industry and prior to that worked at the Bureau of Labor Statistics in the Division of Price Index and Number Research. He joined the staff at OTB in November 2004.


  1. Steve Plunk says:

    Let’s face the fact Barney Frank is bad for America. Of all the self serving, corrupt politicians trying to run (or ruin) this country he is by far the worst.

    It is time for his moment of shame. If he has any.

  2. Steve Plunk says:

    Steve V.,

    Where are all the Barney Frank defenders? This story is so full of Democratic party hypocrisy it reeks yet no one defends Rep. Frank? The leading Dem in the House deserves better from his liberal brethren.

  3. Without trying to be too partisan, this is shaping up to be the worst Congress ever.

  4. Mike says:

    I am just so happy to see that we learned our lessons about extending mortgage money w/o any controls. Maybe Congress can move on to something of immediate concern like playoffs in college football.

    Is it possible to revoke the citizenship of everyone who continues to vote Frank into office?