Barney Frank Wants Lower Lending Standards

[S55inPA]

can it get any crazier? this moron wants to repeat the devastation he already encouraged? all i can say is....see my sig "Barney the Underwriter" "Telling Fannie Mae to take more credit risk. Now there's an idea" http://online.wsj.com/article/SB124580784452945093.html

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[bigben320e]

Originally Posted by S55inPA

can it get any crazier? this moron wants to repeat the
devastation he already encouraged? all i can say is....see my sig

"Barney the Underwriter"
"Telling Fannie Mae to take more credit risk. Now there's an idea"

http://online.wsj.com/article/SB124580784452945093.html

I see that is a opinion journal article. Do you have an actual reference to that which has the actual wording from those letters?

[S55inPA]

Originally Posted by bigben320e

I see that is a opinion journal article. Do you have an actual reference to that which has the actual wording from those letters?

yes and no.
here is another article referencing the same topic.

http://www.reuters.com/article/newsO...55L39120090622

[bigben320e]

Originally Posted by S55inPA

yes and no.
here is another article referencing the same topic.

http://www.reuters.com/article/newsO...55L39120090622

I saw that one on a search. So as I read it, the threshold is at 70%. I wonder to what percentage is he asking FM to lower?

Another viewpoint:

http://milleronmortgages.com/2009/06...-barney-frank/

Excerpt: "The current guidelines are so strict right now on condos that it is causing prices to drop even more than they should have. That is because if you cannot get financing in a condo project the only way to buy a unit in the building is cash at blow out prices, way below market value. "

Thoughts?

[S55inPA]

my guess is Ben that there are boatloads of unsold condo's out there
and Fannie and Freddie want to make sure they don't get stuck with
the bill. i am not an expert on condo's but i think that condo fees increase when there are less
people occupying the building. this makes it tougher for
owners to maintain the structure. and possibly a higher
delinquency rate. in the end let the market decide. the taxpayers
have been screwed over enough.

[bigben320e]

Originally Posted by S55inPA

my guess is Ben that there are boatloads of unsold condo's out there
and Fannie and Freddie want to make sure they don't get stuck with
the bill. i am not an expert on condo's but i think that condo fees increase when there are less
people occupying the building. this makes it tougher for
owners to maintain the structure. and possibly a higher
delinquency rate. in the end let the market decide. the taxpayers
have been screwed over enough.

I agree on that. The taxpayers have been getting screwed for quite some time.

However after reading the article I sent, and looking at that guys credentials and what he does that does make me look at a little more subjectively.

I am not one for laxed rules, as that's a huge problem in the first place, but there seems to be more to this. I would like to see the response that comes back from FM2.

[NdnMbLova]

I have some advice for Barney Frank.
STFU.
Thanks.

[bigben320e]

Originally Posted by NdnMbLova

I have some advice for Barney Frank.
STFU.
Thanks.

Did you read the article from my earlier post?

[NdnMbLova]

Originally Posted by bigben320e

Did you read the article from my earlier post?

no, not yet. I'll get to it tomorrow.

I believe that mortgage brokers bonuses should be tired to the longer term of the mortage(so if the mortage payers are able to pay for 3 years, the mortgage broker gets his bonus) instead of being tied to the number/amt made from the lending.

[MG]

Lowering the lending standards to soak up excess supply is ridiculous, low lending stanards (forced by Franks to begin with in 1995) is how we go here now. And we still have at least 4 years more of resets on residential ARMs.

Its a stupid political play that we don't need. Franks needs to get his fingers out of the pot.

[jamaicakevkev]

Originally Posted by MG

Lowering the lending standards to soak up excess supply is ridiculous, low lending stanards (forced by Franks to begin with in 1995) is how we go here now. And we still have at least 4 years more of resets on residential ARMs.

Its a stupid political play that we don't need. Franks needs to get his fingers out of the pot.

I see you have mentioned both but which is it really, lower lending standards or predatory loans that have reset to stupidly high lending rates?

[MG]

Originally Posted by jamaicakevkev

I see you have mentioned both but which is it really, lower lending standards or predatory loans that have reset to stupidly high lending rates?

I've been through this with you before, there was no "Predatory lending" conspiracy, there was however a mandate from the federal government that banks meet low income lending requirements which forced the banks to throw away all semblance of lending standards and scramble for LIR paper. This is in addition to Franks being the face man on blatant extortion of pool loans by organizations like ACORN.

Make no mistake, this is 100% (generally) the federal government's and (specifically) Franks and Dodd's fault.

[NdnMbLova]

Originally Posted by MG

I've been through this with you before, there was no "Predatory lending" conspiracy, there was however a mandate from the federal government that banks meet low income lending requirements which forced the banks to throw away all semblance of lending standards and scramble for LIR paper. This is in addition to Franks being the face man on blatant extortion of pool loans by organizations like ACORN.

Make no mistake, this is 100% (generally) the federal government's and (specifically) Franks and Dodd's fault.

Did you not read what I wrote?
I told him to STFU.
You should too.









by "him", I mean Frank

[revstriker]

Originally Posted by bigben320e

I saw that one on a search. So as I read it, the threshold is at 70%. I wonder to what percentage is he asking FM to lower?

Another viewpoint:

http://milleronmortgages.com/2009/06...-barney-frank/

Excerpt: "The current guidelines are so strict right now on condos that it is causing prices to drop even more than they should have. That is because if you cannot get financing in a condo project the only way to buy a unit in the building is cash at blow out prices, way below market value. "

Thoughts?

I think this is just another attempt by Frank to have some control on something. Personally, I don't care if condo prices fall and some condo projects fail because interest in condos is low. But even Frannie doesn't agree with the danger of a higher threshold:

Fannie Mae officials say the new rules haven't been as taxing as some claim. The mortgage company said the 70% rule doesn't apply to loan applications submitted through an underwriting program used by major lenders, and that hundreds of projects submitted through that program since March 1 have been approved even though their sales levels are below 70%. Developers are also able to apply for exemptions to the new policies for loans that are manually underwritten.

Not to mention FHA is still at 51%.