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rosco 357

MY Words. the article had a pic of barney frank on the headline,

Fannie, Freddie asked to relax condo loan rules: report
Mon Jun 22, 2009 10:48am EDT

(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 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.

Fannie Mae and Freddie Mac could not be immediately reached for comment by Reuters.

(Reporting by Chakradhar Adusumilli in Bangalore; editing by Simon Jessop

Last edited by rosco 357 on Fri Jun 26, 2009 4:29 pm; edited 1 time in total (Reason for editing : to clean junk words off my post,)


More evidence that the Dem congress is outta control. Frank and Dodd reuined Fannie and Freddie and they're not through yet. Further bad debt will be covered by that same Congress. Call it what they will, it's government subsidized housing on an incredible scale. Rather than tend to rationalize pricing, this lower standard will encourage and support over-evaluation of condos now built, further new condo construction in a glutted market,and,of course,more loans gone bad. It's so bizarre, I would have not believed that these socialists would propose it. My,my,my. The US government is now in the auto and condo business. What's next? Boats? Cessnas?

rosco 357

teasing marc, but that would be a perfect article if u had included a seadoo, lol, i would really like a cheap, government assisted purchase of a seadoo, mine finally bit the dust after 13 years of great fun on it.. take care

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