Lu Powell wrote:
(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, the Wall Street
Journal said.

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, the paper said.

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, according
to the paper.

The legislators asked the companies to "make appropriate adjustments" to
their underwriting standards for condos, the paper added.

In an interview with the paper, Weiner said the rules have "had a real
chill on the ability to get these condos sold," at a time when prices of
condos have fallen enough to attract potential buyers.

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.

Both Fannie and Freddie are preparing a response to the lawmakers,
according to the paper.

Fannie Mae and Freddie Mac could not be immediately reached for comment
by Reuters.

Werner is just self serving special interests. He is worried about
stuffing his and his buddies pockets. The general concerns, of our
economy is not his concerns.
Special Interests have put a dozen too many straws on the camel's back.
This kind of stuff digs into every Citizen and Taxpayer's pocket.