The Coming Condo Crisis

Brian Doherty | June 25, 2009

Oh, Barney Frank, you've done it again! From 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....

In March, Fannie Mae said it would no longer guarantee mortgages on condos in buildings where fewer than 70 percent of the units have been sold, up from 51 percent, the paper said. Freddie Mac is due to implement similar policies next month....

In a letter to the CEO's of both companies, Representatives Barney Frank, the chairman of the House Financial Services Committee, and Anthony Weiner warned that a 70 percent sales threshold "may be too onerous" and could lead condo buyers to shun new developments....

In addition to the 70 percent sales threshold, Fannie Mae will also not purchase mortgages in buildings where 15 percent of owners are delinquent on condo association dues or where one owner has more than 10 percent of units, as the firm sees these as signals that a building could run into financial trouble, the paper added.

I interviewed Thomas Sowell last month on how looser lending standards, among other things, contributed to the housing bust.

Comments

Kyle Jordan|6.25.09 @ 12:14PM|#

:sigh:

Barney Frank makes me feel dirty. And not in a good way.

Invisible Finger|6.25.09 @ 12:18PM|#

I wish Barney Frank would try getting his rocks off a la David Carradine.

Xeones|6.25.09 @ 12:18PM|#

Yo, fuck Barney Frank. And not the way he likes.

|6.25.09 @ 12:22PM|#

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...

*sigh*

If they were dogs, they'd be impossible to paper-train.

smartass sob|6.25.09 @ 12:24PM|#

Barney Frank and Anthony Weiner? The jokes just write themselves!

smartass sob|6.25.09 @ 12:25PM|#

If they were dogs,

(snicker)

Naga Sadow|6.25.09 @ 12:35PM|#

If they were dogs, they'd be impossible to paper-train.

If they were kids, they would be required to wear helmets at all times.

Xeones|6.25.09 @ 12:41PM|#

If they were Hit'n'Run commenters, they'd be Lefiti and Chad.

Frank -n- Weiner|6.25.09 @ 12:42PM|#

"If they were Hit'n'Run commenters, they'd be Lefiti and Chad."

Sweet!

Xeones|6.25.09 @ 12:44PM|#

If they were action-movie directors, they would be Michael Bay and Uwe Boll.

|6.25.09 @ 12:44PM|#

Wouldn't Frank be Tony?

Kyle Jordan|6.25.09 @ 12:45PM|#

If they were horses, they'd be shot.

I win.

Naga Sadow|6.25.09 @ 12:45PM|#

Dammit, Xeones! Now I'm confused! Shouldn't Frank be Tony?

Naga Sadow|6.25.09 @ 12:46PM|#

SUGARFREE!!!

I don't always come up with great stuff and so far you've stolen two good items today! You're on notice!

*glares at SugarFree*

Naga Sadow|6.25.09 @ 12:47PM|#

I like mine better, Kyle.

Kevin|6.25.09 @ 12:47PM|#

And yet, these guys get re-elected year, after year, after year, after year...

Xeones|6.25.09 @ 12:49PM|#

Shouldn't Frank be Tony?

Only if we're absolutely positive that Tony is not the Eschaton. I'd hate to compare a weakly godlike AI to Barney Frank. I'd get wormhole-exiled to the Septimus system or some shit.

|6.25.09 @ 12:50PM|#

*glares at SugarFree*

Sorry, dude. I was trying to cleanse my palate of the troll attack on the health care thread. I swear some liberal on this board posts those threads to Kos or DemUnderground. The stupidest whiners show up.

"OMG! Libertarians believe in libertarianism!!!!"

|6.25.09 @ 12:51PM|#

AnonoBot is the Eschatolon. His ability to post on topic is evolving.

The same cannot be said for Tony.

alan|6.25.09 @ 12:51PM|#

Wasn't it Frank who disavowed any responsibility for the housing crises just last week?

Wasn't it Frank who claimed the Bush administration obstructed him, 'and some congressman from North Carolina' (Hey, Mel!) from their attempt to rein in Fannie and Freddie?

Yeah, my memory may be just a smidgen better than Mr & Mrs 24 Hour News Cycle by just a hair, or so, but i'm pretty sure it was that guy.

Naga Sadow|6.25.09 @ 12:51PM|#

I think you got it wrong, SugarFree. They don't know the difference between Libertines and Libertarians.

Xeones|6.25.09 @ 12:53PM|#

AnonoBot is the Eschatolon. His ability to post on topic is evolving.

The same cannot be said for Tony.

You're probably right, Sweet'n'Low. Tony is Frank, then!

Naga Sadow|6.25.09 @ 12:53PM|#

And yet, these guys get re-elected year, after year, after year, after year...

One word: Buttsex!

|6.25.09 @ 12:54PM|#

Naga,

They don't know the difference between Libertines and Libertarians.

I see that more evidenced by the GOPtrolls.

The leftiods all seem shocked by basic libertarian notions. "But the public option of health care is just like public schooling!" Yeah, so? What makes them think we like public schools?

|6.25.09 @ 12:56PM|#

By the way... Farrah Fawcett is dead.

Naga Sadow|6.25.09 @ 12:58PM|#

SugarFree,

True. I've noticed an interesting fact. The further left you go, the more you have in common with the far right and vice versa. They seem to follow the same religion just disagree a little about application.

Kyle Jordan|6.25.09 @ 12:59PM|#

"The leftiods all seem shocked by basic libertarian notions. "But the public option of health care is just like public schooling!" Yeah, so? What makes them think we like public schools?"

Yeah. Kind of hard to argue with someone if they have no clue as to where you actually stand. You're probably right about it being posted elsewhere and then the Left Horde attempt to storm our gates in blind rage and perceived moral superiority.

Naga Sadow|6.25.09 @ 12:59PM|#

First Ed McMahon now Farrah!?!?

|6.25.09 @ 12:59PM|#

In a couple years, when we have another real estate bubble collapse, he'll find a way to tell us that he didn't say what he said. Hell, it worked once, it's gotta work again.

Kyle Jordan|6.25.09 @ 1:00PM|#

"By the way... Farrah Fawcett is dead."

Didn't she die like, months ago?!

|6.25.09 @ 1:10PM|#

the Left Horde attempt to storm our gates in blind rage and perceived moral superiority

Moral superiority is all they have. It'd be cute in a sad way if they didn't have their hands in my pocket.

|6.25.09 @ 1:20PM|#

And yet, these guys get re-elected year, after year, after year, after year...

Which is why we need campaign finance resrictions to make the advantages of incumbency even more formidable.

|6.25.09 @ 1:29PM|#

Farrah Fawcett passed away today abd I read it at H&R first.

'Tis a sad day indeed. I shall always remember and honor her right nipple.

|6.25.09 @ 1:33PM|#

Oh, Happy Day!

I can't wait until Feministing gets a hold of this.

kinnath|6.25.09 @ 1:36PM|#

I worked with a guy that had a Farah Fawcett tee-shirt. Her pubic area in the photo lined up with his belly button. He would scrath his stomache and wink.

Frank -n- Weiner|6.25.09 @ 1:40PM|#

"By the way... Farrah Fawcett is dead."

So Ryan O'Neil is a widower then.

|6.25.09 @ 1:46PM|#

First Ed McMahon now Farrah!?!?

Carradine, too. Dead pool trifecta!!

Spoonman|6.25.09 @ 1:57PM|#

Holy shit, I just read that healthcare thread. To quote N.W.A.: "Dumb motherfucker with a gun."

|6.25.09 @ 2:36PM|#

Buying a condo completely defeats the maxim solo cedit quod solo in Ædificatur. Since when did "real estate" start to refer predominantly to the bullshit building on the land rather than to the land itself?

|6.25.09 @ 2:56PM|#

Since when did "real estate" start to refer predominantly to the bullshit building on the land rather than to the land itself?

About 3,000 years ago, when we started living in cities.

|6.25.09 @ 4:55PM|#

If they were action-movie directors, they would be Michael Bay and Uwe Boll.

The Island was a fun movie. And the trailer for Pearl Harbor was good.