Barney Frank Has No Shame or Is Insane – Tells Fannie Mae and Freddie Mac to LOWER Lending Standards
Posted By Vicki McClure Davidson on June 24, 2009
Lower the lending standard, Fannie and Freddie! Thanks, Barney Frank!
From Wall Street Journal:
Back when the housing mania was taking off, Massachusetts Congressman Barney Frank famously said he wanted Fannie Mae and Freddie Mac to “roll the dice” in the name of affordable housing. That didn’t turn out so well, but Mr. Frank has since only accumulated more power. And now he is returning to the scene of the calamity — with your money. He and New York Representative Anthony Weiner have sent a letter to the heads of Fannie and Freddie exhorting them to lower lending standards for condo buyers.
You read that right. After two years of telling us how lax lending standards drove up the market and led to loans that should never have been made, Mr. Frank wants Fannie and Freddie to take more risk in condo developments with high percentages of unsold units, high delinquency rates or high concentrations of ownership within the development.
Fannie and Freddie have restricted loans to condo buyers in these situations because they represent a red flag that the developments — many of which were planned and built at the height of the housing bubble — may face financial trouble down the road. But never mind all that. Messrs. Frank and Weiner think, in all their wisdom and years of experience underwriting mortgages, that the new rules “may be too onerous.”
And in a display of the wit for which Mr. Frank is famous, the letter writers slyly point out that higher lending standards won’t reduce taxpayer exposure to bad loans because the Federal Housing Administration has even lower standards for condos. “While the underlying goal may be to reduce taxpayer exposure relating to the current conservatorship of the GSEs [government sponsored entities], such a goal would not have such an effect if it merely results in a shifting of loans from the GSEs to the FHA.” Tougher lending standards will merely shift market share from one government program to another, so what’s the point in being cautious?
Fannie and Freddie have already lost tens of billions of dollars betting on the mortgage market — with that bill being handed to taxpayers. They face still more losses going forward, because in the wake of their nationalization last year their new “mission” has become to do whatever it takes to prop up the housing market. The last thing they need is lawmakers like Mr. Frank, who did so much to lay the groundwork for their collapse, telling them to play faster and looser with their lending standards.
Fannie and Freddie have always been political creatures under the best circumstances. But we don’t remember anyone electing Mr. Frank underwriter-in-chief of the United States.
Who keeps voting for this clown? Is he raving mad? Or, just a greedy, power-hungry, pathological liar? Or, brace yourself—BOTH?
Blast from the past: a clip from a previous Frugal Café post, “You, Sir, Are a Serial Liar!” Mark Levin Rips on Congressman Barney Frank… Again & Again:
In the videos below, Mark Levin analyzes and exposes Chairman of the House Financial Services Committee’s Barney Frank’s “misremberings” or falsehoods that he’s told the press; Frank deflects all blame from himself and others in the Democrat party for the housing and economic crisis. He points his stubby fingers at Republicans and George W. Bush for being the irresponsible ones who “forced” low income people into buying homes that they couldn’t afford. However, audio files of Frank’s own words expose his lack of veracity. Shame, shame, shame.
Frank is also a United States House Representative for Massachusetts.
Barney Frank Caught in Another Lie: Mark Levin Plays Two Audio Tracks | Broadcast April 2009
“You, Sir, Are a Serial Liar”: Mark Levin Takes on Barney Frank… Again | Broadcast April 2009
Related Barney Frank & Fannie Mae/Freddie Mac stuff:
Founding Bloggers: Barney Frank Tells Fannie And Freddie To LOWER Lending Standards! America Has Not Yet Hit Bottom!
Ztower: In The Spirit Of Cash For Clunkers – Fannie Mae Seeks Another $10.7 Billion.
Breitbart.TV: ‘This Interview is Over’: Barney Frank Walks Off Live CNBC Interview on Executive Pay
Michelle Malkin: The Fannie and Freddie debacle: An autopsy and Cap and trade regulations: Do you trust this man? and Barney Frank has a snit fit and Audio clip of the day and Will an MSM reporter ask this question? and Barney Frank protests (and sputters and bullies) too much and Barney Frank’s America
Radio Vice Online: GOP House Oversight Committee mortgage crisis review
Latest Technology News: NBC’s Vieira Refuses to Challenge Barney Frank on Wasteful Earmarks
The American Pundit: The Hypocritical Incompetence of Congress
GayPatriot: Barney Can Dish it Out, but he Just Can’t Take It and Why the Left Loves Barney Frank and The Best Thing Barney Frank Could Do For Gay People…
WinkyDog: Barney Frank Goes Menopausal On CNBC
Fire Andrea Mitchell!: Barney Frank loses it on CNBC
Hot Air: Video: Frank’s strawman snit
MSNBC: Obama blocks access to White House visitor list
Suitably Flip: Breathe, Barney
RBO: Lou Dobbs: Reps Michele Bachmann and Barney Frank face off over ACORN’s federal funds
Rantings of mine: Frank, Dodd, Congress…The Ultimate in Arrogance and Incompetence
RedState: Whoops… Entitlement Programs Collapsing Faster than Expected
Autographed Letter Signed: Barney Frank, Bilk
Frugal Café Blog Zone: Dude, Where’s My Car? Deadbeat Welfare Recipients in Massachusetts Get Free Cars (from Taxpayers)
Right Wing News: An Interview With Mark Levin
Hot Air: Barney Frank: Republicans have a “psychological disorder” or something
Pronk Palisades: Barney Frank–Hang Him High–Just Kidding–Put Barney Frank In Jail for 30 Years For Malfeasance–Fair Enough!
Rantings of mine: Frank, Dodd, Congress…The Ultimate in Arrogance and Incompetence
Peace and Freedom Global Future: Freddie Mac Official Kills Self; Pelosi, Barney Frank Move On
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