UNBELIEVABLE! Barney Franks wants to LOWER standards for Fannie/Freddie on condo's!

Discussion in 'Congress' started by oreo, Jun 24, 2009.

  1. oreo
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    oreo Gold Member Supporting Member

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    Here we go again. Are you just as tired as I am of Barney Frank co-signing OUR names to mortgages?

    DID YOU KNOW:

    Last week--our new secretary of the Treasury, Timothy Geithner--while announcing new banking regulations--was asked during the hearing--if he thought Fannie/Freddie had anything to do with the current economic collapse. Geithners reply--DEFINITELY.

    Well--it turns out that our Banking Queen-Barney Frank-is a little upset because Fannie/Freddie will not guarantee mortgages with our signatures on any condo's that do not have "at least" a 70% occupancy rate. And somehow this is hurting somebody.

    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.

    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.
     
    Last edited: Jun 24, 2009
  2. sealybobo
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    sealybobo Diamond Member

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    Don't you want the housing market to pick up? And these condo's are generally cheaper than homes, so its less of a risk. And what are the requirements? You do realize banks and car companies are being real tight with their money right now. We need to get them to loosen up the purse strings.

    And because now that Democrats are in charge, the banks have to keep the appropriate amount of cash on hand in case of an economic emergency, PLUS, they aren't bundling up all the "TOXIC ASSETS" and selling them up the ladder. PLUS, they aren't predatory lending. So people won't be losing their homes because of adjustable rates.

    And yes, people might lose their jobs and then not be able to pay. So do you want to just stay in this recession or work to get out of it?

    You right wingers spin everything the way you want.

    I can not imagine a scenerio where I would vote GOP ever again in my lifetime. You guys are just so intellectually dishonest. Maybe if I hit the lotto I'll change my mind, but that's about it. You guys are liars, greedy and ignorant.
     
  3. oreo
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    oreo Gold Member Supporting Member

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    You may want to refer to this article again:

    Fannie Mae Eases Credit To Aid Mortgage Lending - The New York Times

    If you want to co-sign your name to guarantee these mortgages go ahead--leave my name off of them.
     
  4. Tech_Esq
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    Tech_Esq Sic Semper Tyrannis!

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    Well, why destroy the housing industry once when you can destroy it twice?

    After all, utter collapse doesn't happen overnight, you have to plant the seeds early for them to bear fruit.
     
  5. Meister
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    Meister VIP Member Supporting Member

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    Does anyone else see the irony in bobo's post?
     
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  6. Tech_Esq
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    Tech_Esq Sic Semper Tyrannis!

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    You would have to read his posts to see the irony. I only read his posts when I'm looking for a rant or a diatribe. Or, when I'm looking for a foil to use to make a point.
     
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  7. manu1959
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    manu1959 Left Coast Isolationist

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  8. oreo
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    oreo Gold Member Supporting Member

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    I have been in the construction industry for 30+ years in my own business. I have also have had several rental properties. NEVER ONCE--did I need 298 MILLION co-signers.

    I also know that if the price is "right" on these condo's there will be investors & "qualified" home buyers that will soak these condo's up--without the need of 298 MILLION co-signers.

    To ADD--Freddie/Fannie have "tightened" their regulations based upon RECENT experience! I agree--if homeowner association dues are not being paid by home-owners--it is a clear indication that these homeowners are going to walk on their mortgages. If you don't have a high occupancy rate--this probably indicates this property is in a undersirable location--& anyone knows that when it comes to real estate--it's always-location-location-location.

    So for you libs out there that are supporting this--you march behinds right into Barney Franks office & sign your names to these mortgages, keep mine name the hell off.
     
    Last edited: Jun 24, 2009
  9. oreo
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    oreo Gold Member Supporting Member

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    Do you want to clarify yourself--or are you just farting right now. BTW--did you read

    Fannie Mae Eases Credit To Aid Mortgage Lending - The New York Times

    Or was it too much for your brain to comprehend? Pay special attention to the warning in this article if you are are capable of getting past 4th paragraph.
     
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  10. sealybobo
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    sealybobo Diamond Member

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    Not your decision. The government also guarantees pensions. That too is not your decision. Not anymore, thank God.

    And the funny thing is, the GOP spent 6-8 years socializing losses while privatizing the profits. You saw nothing but losses the last 8 years. Did you complain?

    And again, if you want things to change, vote. After that, call your Senator. That's about all you can do. But it won't do any good because 72% of us approve.
     

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