Attention Buyers of New Condos: Barney Frank is Coming to the Resuce! YEAH!
Started by The_President
over 16 years ago
Posts: 2412
Member since: Jun 2009
Discussion about
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 said it would no longer guarantee mortgages on... [more]
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 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.
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Response by The_President
over 16 years ago
Posts: 2412
Member since: Jun 2009
This is bad news for all the housing terrorists, I mean bears.
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Response by MatWith1T
over 16 years ago
Posts: 66
Member since: Mar 2009
I love it - it doesn't actually alleviate any of the risk of buying an undersold development or lending the money to buy one, and it only fosters the same lax standards of offering credit that caused the depressed housing market in the first place - but goshdarnit, it feels right! Won't someone think of the developers!
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Response by Ubottom
over 16 years ago
Posts: 740
Member since: Apr 2009
this and the unfair appraisal whining are very funny---same crap
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Response by Riversider
over 16 years ago
Posts: 13572
Member since: Apr 2009
So is Barney Frank For or against cleaning up the credit mess?(I can't recycle these quotes enough)
Rep. Barney Frank (D., Mass.): I worry, frankly, that there's a tension here. The more people, in my judgment, exaggerate a threat of safety and soundness, the more people conjure up the possibility of serious financial losses to the Treasury, which I do not see. I think we see entities that are fundamentally sound financially and withstand some of the disaster scenarios. . . .
Rep. Frank: I do think I do not want the same kind of focus on safety and soundness that we have in OCC [Office of the Comptroller of the Currency] and OTS [Office of Thrift Supervision]. I want to roll the dice a little bit more in this situation towards subsidized housing. . . .(Barney Frank said OTS I guess he was joking)
Rep. Frank: Let me ask [George] Gould and [Franklin] Raines on behalf of Freddie Mac and Fannie Mae, do you feel that over the past years you have been substantially under-regulated?
Mr. Raines?
Mr. Raines: No, sir.
Mr. Frank: Mr. Gould?
Mr. Gould: No, sir. . . .
Mr. Frank: OK. Then I am not entirely sure why we are here. . . .
Rep. Frank: I believe there has been more alarm raised about potential unsafety and unsoundness than, in fact, exists.
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Response by Riversider
over 16 years ago
Posts: 13572
Member since: Apr 2009
Barney Frank Bio(I can't find any experience in mortgage underwriting help me out!)
io
[edit]
Background
Frank was born March 31, 1940 in Bayonne, New Jersey. He was educated at Harvard College, graduating in 1962. He taught undergraduates at Harvard while studying for a Ph.D, but left in 1968, before completing that degree, to become the Chief Assistant to Mayor Kevin White of Boston, a position he held for three years. He then served for one year as Administrative Assistant to Congressman Michael J. Harrington.
In 1972, Frank was elected to the Massachusetts Legislature, where he served for eight years. During that time, he entered Harvard Law School and graduated in 1977.
While in state and local government, Frank taught part-time at the University of Massachusetts Boston, the John F. Kennedy School of Government at Harvard and at Boston University. He published numerous articles on politics and public affairs, and in 1992 he published Speaking Frankly, an essay on the role the Democratic Party should play in the 1990s.
"Rep. Frank: Let me ask [George] Gould and [Franklin] Raines on behalf of Freddie Mac and Fannie Mae, do you feel that over the past years you have been substantially under-regulated?
Mr. Raines?
Mr. Raines: No, sir.
Mr. Frank: Mr. Gould?
Mr. Gould: No, sir. . . .
Mr. Frank: OK. Then I am not entirely sure why we are here. . . .
Rep. Frank: I believe there has been more alarm raised about potential unsafety and unsoundness than, in fact, exists."
oh, JFC, the bullshit meter just went off the scale.
"So, Mr. Manson, do you think that you have been unduly incarcerated for the actions which you took?"
"Hey, man, I don't see why everyone is over reacting so much".
Barney Frank: "I don't understand the big deal being made of the American taxpayer taking it in the ass"
(sorry. I know how un PC that was. But it was too good to pass up).
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Response by marco_m
over 16 years ago
Posts: 2481
Member since: Dec 2008
yes..just what we needed..best way to cure a housing bubble is to help create a new one. nice
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Response by ClosCade
over 16 years ago
Posts: 2
Member since: Jun 2009
Frank and Dodd are among the top people responsible for this.
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Response by The_President
over 16 years ago
Posts: 2412
Member since: Jun 2009
not nearly as responsible as Greenspan and Phil Gramm. Don't forget that during the boom years, the Democrats were in the minority so you can't put the bulk of blame on them.
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Response by 30yrs_RE_20_in_REO
over 16 years ago
Posts: 9876
Member since: Mar 2009
I agree with Greenspan as being number one on the hit list. I also agree that Frank and Dodd are among the top people responsible for this. If by naming Phil Gramm you're talking about the 1999 Gramm-Leach-Bliley Act - as uncharacteristic it is for me to cut anyone slack - I don't think he could anywhere near have the the chance to see that what he was doing was going to cause a housing bubble and collapse as the other three. While on the list, he's probably down somewhere in the 20's.
OTOH, if you're referring to responsibility for the fiscal crisis as a whole, and his part in loosing derivatives on the market, then that's another story.
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Response by Riversider
over 16 years ago
Posts: 13572
Member since: Apr 2009
Top Contributors
Barney Frank
Campaign Finance Cycle:
Contributor Total
American Bankers Assn $74,950
JPMorgan Chase & Co $73,500
National Assn of Realtors $69,042
Human Rights Campaign $58,775
Laborers Union $54,750
American Fedn of St/Cnty/Munic Employees $53,000
American Assn for Justice $51,500
Securities Industry & Financial Mkt Assn $46,996
American Institute of CPAs $45,859
FMR Corp $45,650
Credit Union National Assn $43,000
Teamsters Union $41,500
National Assn of Home Builders $40,500
Brown Brothers Harriman & Co $40,200
Bank of America $40,000
UBS AG $38,100
Mortgage Bankers Assn $38,000
United Food & Commercial Workers Union $36,948
Independent Community Bankers of America $34,500
Ernst & Young $33,400
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Response by NWT
over 16 years ago
Posts: 6643
Member since: Sep 2008
Don't forget Andrew Cuomo in his DC stint.
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Response by Riversider
over 16 years ago
Posts: 13572
Member since: Apr 2009
"As the leading advocate for expanding homeownership opportunities, NAR
has long supported FHA modernization legislation that increases loan limits,
eliminates the statutory 3 percent minimum cash down payment, and gives FHA
the flexibility to provide risk-based pricing. NAR also supports the continued
availability of FHA loss mitigation programs," said Combs. "We are pleased
that this bill contains all of these important enhancements."
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Response by marco_m
over 16 years ago
Posts: 2481
Member since: Dec 2008
lets not forget about greenspan and his irrational exeuberance speech back in 1996. He was warning people and everyone freaked out on him.
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Response by Riversider
over 16 years ago
Posts: 13572
Member since: Apr 2009
lets not forget about greenspan and his irrational exeuberance speech back in 1996. He was warning people and everyone freaked out on him.
different topic, the issue is Barney Frank's hypocracy and the NAR not being a dis-interested party in lax lending....
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This is bad news for all the housing terrorists, I mean bears.
I love it - it doesn't actually alleviate any of the risk of buying an undersold development or lending the money to buy one, and it only fosters the same lax standards of offering credit that caused the depressed housing market in the first place - but goshdarnit, it feels right! Won't someone think of the developers!
this and the unfair appraisal whining are very funny---same crap
So is Barney Frank For or against cleaning up the credit mess?(I can't recycle these quotes enough)
Rep. Barney Frank (D., Mass.): I worry, frankly, that there's a tension here. The more people, in my judgment, exaggerate a threat of safety and soundness, the more people conjure up the possibility of serious financial losses to the Treasury, which I do not see. I think we see entities that are fundamentally sound financially and withstand some of the disaster scenarios. . . .
Rep. Frank: I do think I do not want the same kind of focus on safety and soundness that we have in OCC [Office of the Comptroller of the Currency] and OTS [Office of Thrift Supervision]. I want to roll the dice a little bit more in this situation towards subsidized housing. . . .(Barney Frank said OTS I guess he was joking)
Rep. Frank: Let me ask [George] Gould and [Franklin] Raines on behalf of Freddie Mac and Fannie Mae, do you feel that over the past years you have been substantially under-regulated?
Mr. Raines?
Mr. Raines: No, sir.
Mr. Frank: Mr. Gould?
Mr. Gould: No, sir. . . .
Mr. Frank: OK. Then I am not entirely sure why we are here. . . .
Rep. Frank: I believe there has been more alarm raised about potential unsafety and unsoundness than, in fact, exists.
Barney Frank Bio(I can't find any experience in mortgage underwriting help me out!)
io
[edit]
Background
Frank was born March 31, 1940 in Bayonne, New Jersey. He was educated at Harvard College, graduating in 1962. He taught undergraduates at Harvard while studying for a Ph.D, but left in 1968, before completing that degree, to become the Chief Assistant to Mayor Kevin White of Boston, a position he held for three years. He then served for one year as Administrative Assistant to Congressman Michael J. Harrington.
In 1972, Frank was elected to the Massachusetts Legislature, where he served for eight years. During that time, he entered Harvard Law School and graduated in 1977.
While in state and local government, Frank taught part-time at the University of Massachusetts Boston, the John F. Kennedy School of Government at Harvard and at Boston University. He published numerous articles on politics and public affairs, and in 1992 he published Speaking Frankly, an essay on the role the Democratic Party should play in the 1990s.
I found it. Barney Frank speech in congress discussing real estate valuation in 2005.
http://www.youtube.com/watch?v=iW5qKYfqALE&eurl=http%3A%2F%2Fadgmc.com%2Fblog%2F%3Fp%3D376&feature=player_embedded
"Rep. Frank: Let me ask [George] Gould and [Franklin] Raines on behalf of Freddie Mac and Fannie Mae, do you feel that over the past years you have been substantially under-regulated?
Mr. Raines?
Mr. Raines: No, sir.
Mr. Frank: Mr. Gould?
Mr. Gould: No, sir. . . .
Mr. Frank: OK. Then I am not entirely sure why we are here. . . .
Rep. Frank: I believe there has been more alarm raised about potential unsafety and unsoundness than, in fact, exists."
oh, JFC, the bullshit meter just went off the scale.
"So, Mr. Manson, do you think that you have been unduly incarcerated for the actions which you took?"
"Hey, man, I don't see why everyone is over reacting so much".
"I found it. Barney Frank speech in congress discussing real estate valuation in 2005.
http://www.youtube.com/watch?v=iW5qKYfqALE&eurl=http%3A%2F%2Fadgmc.com%2Fblog%2F%3Fp%3D376&feature=player_embedded"
Barney Frank: "I don't understand the big deal being made of the American taxpayer taking it in the ass"
(sorry. I know how un PC that was. But it was too good to pass up).
yes..just what we needed..best way to cure a housing bubble is to help create a new one. nice
Frank and Dodd are among the top people responsible for this.
not nearly as responsible as Greenspan and Phil Gramm. Don't forget that during the boom years, the Democrats were in the minority so you can't put the bulk of blame on them.
I agree with Greenspan as being number one on the hit list. I also agree that Frank and Dodd are among the top people responsible for this. If by naming Phil Gramm you're talking about the 1999 Gramm-Leach-Bliley Act - as uncharacteristic it is for me to cut anyone slack - I don't think he could anywhere near have the the chance to see that what he was doing was going to cause a housing bubble and collapse as the other three. While on the list, he's probably down somewhere in the 20's.
OTOH, if you're referring to responsibility for the fiscal crisis as a whole, and his part in loosing derivatives on the market, then that's another story.
Top Contributors
Barney Frank
Campaign Finance Cycle:
Contributor Total
American Bankers Assn $74,950
JPMorgan Chase & Co $73,500
National Assn of Realtors $69,042
Human Rights Campaign $58,775
Laborers Union $54,750
American Fedn of St/Cnty/Munic Employees $53,000
American Assn for Justice $51,500
Securities Industry & Financial Mkt Assn $46,996
American Institute of CPAs $45,859
FMR Corp $45,650
Credit Union National Assn $43,000
Teamsters Union $41,500
National Assn of Home Builders $40,500
Brown Brothers Harriman & Co $40,200
Bank of America $40,000
UBS AG $38,100
Mortgage Bankers Assn $38,000
United Food & Commercial Workers Union $36,948
Independent Community Bankers of America $34,500
Ernst & Young $33,400
Don't forget Andrew Cuomo in his DC stint.
"As the leading advocate for expanding homeownership opportunities, NAR
has long supported FHA modernization legislation that increases loan limits,
eliminates the statutory 3 percent minimum cash down payment, and gives FHA
the flexibility to provide risk-based pricing. NAR also supports the continued
availability of FHA loss mitigation programs," said Combs. "We are pleased
that this bill contains all of these important enhancements."
lets not forget about greenspan and his irrational exeuberance speech back in 1996. He was warning people and everyone freaked out on him.
lets not forget about greenspan and his irrational exeuberance speech back in 1996. He was warning people and everyone freaked out on him.
different topic, the issue is Barney Frank's hypocracy and the NAR not being a dis-interested party in lax lending....