Assigned Reading: Fannie, Freddie Asked to Relax Condo Loan Rules
And, in news not at all connected with Argentine or the deeper recesses of the South Carolina governor’s pants, we find out that Barney “Banking Queen” Frank is among two Democrats on Capitol Hill pressuring Fannie Mae and Freddie Mac to relax the recently tightened lending standards for mortgages on newly constructed condominiums.
Isn’t this how we got into this problem in the first place?
Throughout the 1990s, Democrat lawmakers pressured Fannie and Freddie and other banks to relax lending standards as homeownership was looked upon as a right and not a privilege. What Democrats everywhere don’t seem to realize is that the market is a natural force, ebbing and flowing automatically and instinctively to adjust to changing times and extrinsic influences. Lending standards are in place for a reason, and if any change need be made, that change will come from natural market forces.
Let’s leave government out of it. While the housing market was crashing due in large part to congressional malfeasance, Frank and his cohorts refused to heed warnings coming from Republicans like John McCain and, on 18 separate occasions, from the Bush White House. Instead, they rested on their laurels, counted on the media to continue portraying the GOP as anti-regulation even with regard to such housing and lending issues, and as a result the market faltered, taking pretty much everything else with it.
Yet Frank in particular has not seemed to have learned his lesson. Unbelievable.