Rep. Barney Frank says that unless Fannie Mae and Freddie Mac relax their recent tightening of mortgage standards on new condominiums, the economic recovery could be threatened.
That would be the same Barney Frank who famously boasted that the two federal agencies — which lost billions by making improvident loans — were « fundamentally sound financially and [can] withstand . . . disaster scenarios. »
Then came the disasters.
But to Barney Frank, Fannie and Freddie are essentially taxpayer-funded social-service agencies whose mission is to turn all Americans into homeowners — whether or not they can afford it.
Fannie and Freddie recently announced that they would no longer guarantee mortgages on condos where fewer than 70% of the units have been sold; the previous threshold was 51%. And they’ve raised fees on buyers whose down payment is less than the standard 25%.
Pour ceux qui ignore qui est le sympathique Barney Frank, cliquez ici.