RSSBarney Frank Wants To Go Back To The Problems Of The Past
J.J. Jackson | June 25, 2009
Try as hard as he might to deny it, Representative Barney Frank was part of the problem that lead to the collapse of the lending system in the United States. We all by now are painfully aware of how Frank (and other liberals) defending Fannie Mae and Freddie Mac from criticism of loose lending standards claiming that the two organizations were sound only to watch them come crashing down as those loose lending standards came back to bite them in the ass. Well, now we are back to the past as Barney Frank wants these institutions, which recently tightened up standards in the wake of the housing collapse, to loosen standards again.
(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.
Barney Frank is failing to learn from the lessons of the past. He is doing this this for a couple of reasons. One, he’s a flaming liberal. Two, he is really worried that if the economy doesn’t turn around his own political life may be in jeopardy even in ultra left wing Massachusetts and wants to see if he can “prime the pump” through unsound fiscal policies and government involvement that has proven to have disastrous long term consequences.
Hey Barney, butt out. You have no Constitutional authority to act like this so sit down and worry about a post road or something.
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