Barney Frank Leans On Fannie Mae Freddie Mac To Ease Up On Condo Loans

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Yeehaa….let’s go down this road again huh Barney?

That’s right folks, this uber liberal disaster of a congressman has sent, along with his aptly named partner in this effort Anthony Weiner (D-NY), a letter to mortgage giants Fannie Mae and Freddie Mac requesting they pull way back on recently enacted rules that have been imposed for condominium purchases designed to prevent another round of the foreclosure catastrophe and housing market collapse that the American taxpayers have been forced to swallow.

You see Frank will tell anybody who will listen to his slobbering lisp that America’s financial mess can be blamed squarely on the Republican party and their supposed unwillingness to implement lending regulations that would have saved us from the subprime mortgage calamity which became the root cause of the our current economic turmoil. Never mind that it was he who was up to his fruitcake, along with many of his fellow Democrats, in forcing lending institutions to provide home loans to low income people who could not possibly hope to fulfill their financial responsibility of repaying their mortgages. He was also one of the loudest mouths against any attempts to rein in the Fannie/Freddie juggernaut that the Bush administration, Fed chairman Alan Greenspan and Congressional Republicans were prophetically warning was getting out of hand and if more stringent regulation was not immediately introduced, would eventually bring our economy to its very knees.

Naturally Frank’s memory went suddenly blank when everything fell apart and remains 180 degrees out of phase to this day. Fortunately for the rest of us we can just go back and look at what really happened and who was truly responsible for the financial meltdown.


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Some of the issues Frank and Weiner (heh heh) addressed in their letter to Fannie/Freddie revolved around rule changes that came about in March when Fannie Mae declared it would no longer underwrite mortgages on condos in buildings where less than 70% of the units have been sold. Previously the threshold was 51%. Additionally Fannie Mae has begun to refuse mortgages in buildings where 15% of owners are delinquent on association fees or where more than 10% of units are under the ownership on a single entity, which the company has determined is a sign the complex could possibly be in future financial trouble. Freddie Mac is due to adopt similar policies and procedures within a month.

The congressmen expressed their concern that the bumped up rules would prohibit new home buyers from taking advantage of the much lower prices condos are fetching these days and in turn put a crimp in the overall housing market.

The Wall Street Journal reported Frank and Weiner told the heads of Fannie/Freddie they felt the 70% figure “may be too onerous” and would possibly lead potential condo buyers to shun new developments. The congressmen also urged the companies to “make appropriate adjustments” to their underwriting standards for condos.

Make appropriate adjustments? The government, for well over a half a century, has been trying to control damn near every aspect of private businesses with overbearing and “onerous” rules and regulations and it gets worse every single congressional working day of the year. Now we have these left wing politicians turning around and blaming the capitalistic system for our current financial situation with nary a mention of their constant and heavy handed meddling in the mix. What a joke. If the free market was simply allowed to work the way it is supposed to, free of corrupt government influence, our economy would be booming right now.

Now I began to wonder if Barney Frank had any ulterior motives for sending off this letter, beyond altruistic reasons for the struggling potential homeowners of course, so I headed over to the opensecrets.org website to see what kinds of companies and businesses fund this guy’s reelection campaigns.

During his far too long 28 year career as a congressman Frank has received from the,

*American Bankers Association–$74,950

*National Association of Realtors–$69,042

*Laborers Union–$54,750

*National Association of Home Builders–$40,500

*Bank of America–$40,000

*Credit Union National Association–$43,000

*Mortgage Bankers Association–$38,000

*Independent Community Bankers of America–$34,500

*American Society of Appraisers–$11,000

*International Brotherhood of Electrical Workers–$10,000

*National Multi Housing Council–$10,000

That would be a total of at least $425,742 that has rolled in (naturally only after Frank finally got himself in a position of some worthwhile political power) over the years from businesses, organizations or companies that would most like benefit greatly from any assistance Frank could lend in this effort to get Fannie/Freddie to walk back on their new rules and regulations designed to protect the American taxpayers. Weiner’s take would be a bit less at some $119,000 since 1989.

Fannie Mae and Freddie Mac have lost billions of dollars buying up millions of bad mortgages then taxpayers get screwed paying the tab yet not a single crook had their ass thrown in jail, huh Franklin Raines? What concerns me is the future, as citizens are distracted with any number of crazy ass crisis scenarios thrown their way, when more of this mortgage monkey business crap that got this country in trouble in the recent past cranks back up under the guise of this administration working hard to bring back the housing market no matter what it takes.

That said, I think most people would agree the last person who needs to be sending out any letters telling mortgage companies to chill out on their lending practices is the very person many feel is one of the prime architects of our current financial meltdown, Mr. Barney Frank.

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