One has to give it to Congressmen Barney Frank (D-Mass) and Anthony Weiner (D-New York) for having the chutzpah to ask the beleaguered home-lending giants, Fannie Mae and Freddie Mac to lower their lending standards once again.
These two clowns, Laurel and Hardy, must be having trouble because it sounds like the people they are trying to help may just be their development supporters.
The two home-lending behemoths will not provide loans on condominiums in which less than 70% of the units have been sold. That is up from 51%.
It is a good thing that Fannie and Freddie have hiked the threshold. The fact that some developers over built and thus can not sell their properties are not the business of the government.
What Fannie and Freddie had done is to have serious potential buyers have to possibly lower their sights onto something that they can afford. In other words, maybe some condo buyers will not be able to move into the newest flavor of the month. They may have to settle for an older building. But, one in their range of ability to pay the monthly mortgage, taxes and the like.
It is the fact that Fannie and Freddie lowered the underwriting standards in the first place that has led to the housing debacle.
But, like a couple of dry drunks, Laurel and Hardy, er Messrs. Frank and Weiner are asking for one more try at the well.
Hopefully, Fannie and Freddie will tell these two clowns, no more. The well is dry. We are going to keep the high standards and make sure those that really want a potential condo will be underwritten for something that they can really afford.
When, oh when, will these clowns ever, ever learn?