Frank wants to LOOSEN housing regulations!

[twitomy]

(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.

<http://www.reuters.com/article/GCA-Housing/idUSTRE55L39120090622>


WTF...It was de-regulation that contributed to these mess, and this clown wants to repeat it...

[sandnsea]

1. No it wasn't

It was shoving people into no-interest teaser loans in order to use those loans as collateral to gamble.

If we've got regulation on the kinds of loans written and limiting profit, then these loans will be just as good as they were for the 30 years before the Bushies deregulated them because the big banks couldn't compete with the cushy deal Fannie & Freddie got.

[Taverner]

4. Yes it was - how do you think de-regulation killed the economy?

[sandnsea]

5. I'll repeat

It was shoving people into no-interest teaser loans in order to use those loans as collateral to gamble.

It was the bursting of that gambling bubble, the derivatives, that killed the economy; not some poor people with $100,000 mortgages.

[DJ13]

2. The condo market is nearing a collapse

[DURHAM D]

6. what does that mean?

Oh I get it - for 30-40 years condos have been a good living situation for many but in the past year they have become absolute poison.


Wrong.

[DJ13]

7. No, the MARKET for condos (new & existing) is near a collapse

The lenders arent loaning under the renewed regulations.

The condo market has declined by 60% (verses 20-30% for houses) in the last year.

[DURHAM D]

10. "condo market has declined by 60%..."

Could you provide the source for this information? I suspect it is only for new condos - not existing.


Also, the regulations for percentage of ownership and delinquent assessments is not new - its been in place for decades.

[4lbs]

3. It wasn't deregulation of Fannie Mae and Freddie Mac that caused it.

It was the deregulation of the entire banking industry, that allowed banks to evolve and grow to become large multi-service financial conglomerates, that built the house of cards, and caused it to come crashing down about a decade later.

[twitomy]

8. Yes--Deregulation

We need more regulation across the board, not less...
If the condo market,"collapses", so be it. Maybe then more people can afford them.
Sometimes in the economy you have to let nature take its course. Propping up bubbles
only kicks it down the road into a bigger mess..

[underpants]

9. No he wants to subsidize loans before condos hit the 70% threshhold

The current situation is only to subsidize/encourage loans once 70% occupancy is reached. As Barney explained to O'Reilly last night the 70% mark will never be reached and vacancies will continue

http://www.youtube.com/watch?v=1PwFJpxuNNc

http://www.youtube.com/watch?v=CXmnO1eaDO8