Fannie, Freddie asked to relax condo loan rules

Discussion in 'Politics' started by drjekyllus, Jun 24, 2009.


    "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."
  2. Lucrum


    We're not even out of the first debacle and congress is already trying to orchestrate another one.

    Change we can believe in.
  3. Amazing
  4. The popping of the "credit bubble" was a TERRIBLE THING.... just LOOK at all the mess it caused.

    We must get back to PROMOTING A NEW CREDIT BUBBLE in order to repair the damage of popping the old one... Get it?