Condominiums And Barney Frank
Barney Frank is trying to get Fannie Mae and Freddie Mac to be more lenient on condos. And although this article brings up the fact that he is the same person who may have contributed to the housing meltdown (along with many others) I feel as though he is right on this one. 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. We are especially feeling this in Broward and Miami-Dade Counties.
“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.”