Changes Urged to Rules on Condo Loans

[Chris]

^{June 22, 2009}

Two Democratic lawmakers are calling on 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.

In March, Fannie Mae said it would no longer guarantee mortgages on condos in buildings where fewer than 70% of the units have been sold, up from 51%. Fannie Mae also won't purchase mortgages in buildings where 15% of owners are delinquent on condo association dues or where one owner has more than 10% of units, which the firm sees as signals that a building could run into financial trouble. Freddie Mac will implement similar policies next month.

In a letter to the chief executives of Fannie and Freddie, Reps. Barney Frank, the Massachusetts Democrat who is chairman of the House Financial Services Committee, and Anthony Weiner (D., N.Y.) warned that the 70% sales threshold "may be too onerous" and could lead condo buyers to shun new developments. The legislators asked the companies to "make appropriate adjustments" to their underwriting standards for condos.

http://online.wsj.com/article/SB124562533240635581.html#articleTabs%3Darticle

[rich_t]

Wasn't it loose standards that started this whole housing market crash to begin with?

[Chris]

Wasn't it loose standards that started this whole housing market crash to begin with?

That, and the securitization of home mortgages that took Wall Street down with it.

[Traveshamockery]

Hey, I have an idea - how about if we get these idiots dems to co-sign these loans?  Bet that'll stop that quick. 

Furthermore, if they are so upset about people not having health insurance, why don't those idiots who scream about it the loudest take it upon themselves to take care of that, too? 

I'm just about tired of all this "common good" crapola they keep pushing. 

[Chris]

I saw a show last night (I think it was NOW or Frontline... typical public-television drivel) extolling the virtues of an organized gang of squatters in Los Angeles.  They actively search for houses that have been foreclosed and boarded up, and move people into them to live.

[Bluegrassman]

That, and the securitization of home mortgages that took Wall Street down with it.

Not to mention the Community Reinvestment Act. 

[miskie]

What the hell is Fwank doing ? leaning in to kiss an Invisible dance partner ?  Heh ... loliticians.

(which BTW, I just registered loliticians.net - There is too much funny to be ignored)

[NHSparky]

Has this assclown been living under a rock for the last year, or is he DELIBERATELY trying to be that stupid?

[JohnnyReb]

Please...somebody....find some breaking news. Who wants to open a page with Fwank all puckered up looking at you.