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Frank: Home Ownership Push Was Mistake

From an oblivious CNN:

Frank calls for more affordable rental housing

April 20, 2009

From CNN’s Greg Clary

(CNN) — The chairman of the House Financial Services Committee said Monday that federal funding for affordable rental properties must be increased.

Rep. Barney Frank, D-Massachusetts, also warned that a Bush-era policy to help low-income families become homeowners instead of renters contributed to the sub-prime mortgage crisis and, ultimately, the larger economic crisis now confronting the country.

Frank made his remarks during a speech at the National Low Income Housing Coalition’s policy conference in Washington.

"It is in 2003 and after that the percentage of mortgage loans that went to lower-income people spiked and the number who weren’t able to pay spiked, and it’s connected," said Frank, who chairs the committee that oversees all components of the nation’s housing and financial services sectors.

Frank said federal funding for affordable housing had been cut when the GOP controlled both Congress and the White House because of a traditional Republican bias in favor of home ownership. He added, however, that housing policies will change now that Democrats are in the majority of Congress.

"We will do everything legally possible to preserve every unit of affordable (rental) housing," Frank said…

From Mr. Frank’s very own taxpayer funded website:

House Passes Comprehensive FHA Reform

September 18, 2007       

Washington, DC – The U.S. House of Representatives today overwhelmingly passed H.R. 1852, the “Expanding American Homeownership Act of 2007,” which will revitalize the Federal Housing Administration (FHA), a federally insured loan program that for over 60 years has been a reliable source of affordable fixed rate mortgage loans, especially for first-time homebuyers.  The measure, originally introduced by Representative Maxine Waters, Chairwoman of the Subcommittee on Housing and Community Opportunity, and Barney Frank, Chairman of the Financial Services Committee, will enable FHA to serve more subprime borrowers at affordable rates and terms, recapture borrowers that have turned to predatory loans in recent years, and offer refinancing loan opportunities to borrowers struggling to meet their mortgage payments in the midst of the current turbulent mortgage markets.

“There is an affordable housing crisis in America.  In recent months, that crisis has exploded beyond the poorest renters and homeowners, to threaten the domestic economy.  H.R. 1852 is a necessary step in walking us back from the brink and in the direction of meeting the housing needs of all Americans,” said Chairwoman Waters.

“A revitalized FHA program will help future homeowners realize the dream of home ownership, and will prevent many first time and inexperienced home buyers from being pushed into loans that are unaffordable or difficult to understand,” said Chairman Frank.  “The bill we passed today will help people all across America because we have enacted provisions to allow the FHA to insure loans in high cost areas.”

Specifically, the bill includes the following important provisions:

  • Lower Down Payments.  Authorizes zero and lower down payment loans for borrowers that can afford mortgage payments, but lack the cash for a required down payment.
  • Housing Counseling.  Authorizes more than double the current funding level for housing counseling, to help subprime homebuyers and borrowers late on mortgage loan payments.
  • Subprime borrowers.  Directs FHA to provide mortgage loans to higher risk (but qualified) borrowers, without authorizing unnecessary fee hikes on such borrowers.
  • Reverse Mortgages.  Enhances the FHA reverse mortgage loan program to help seniors pay for health and other expenses, by removing the loan cap to avoid program shutdowns, raising loan limits, and by reducing the maximum fee lenders can charge for these loans.
  • Multifamily Loans. Raises FHA multifamily loan limits, so these loans can fully fund construction costs in high cost areas, and enhances sale of foreclosed FHA rental housing loans to localities, so that affordable housing can be maintained in local communities.
  • Affordable Housing Fund.  Authorizes up to $300 million a year from the bill’s excess profits for affordable housing, instead of returning such funds to the General Treasury.
  • Higher Loan Limits.  Adopts the Frank/Miller/Cardoza amendment that would raise FHA single family loan limits, which now bar loans above 95% of the median home price in each local area and shut FHA out of higher cost home markets.  The amendment raises the FHA loan limit in each area to the lower of (a) 125% of the local area median home price or (b) 175% of the national GSE conforming loan limit.  The amendment also retains the bill’s provision for a nationwide FHA loan floor of 65% of the GSE conforming loan limit, and gives HUD authority to raise these loan limit amounts by up to $100,000 “if market conditions warrant.”

In addition, the House adopted an amendment to the bill to direct FHA to make available refinancing loans to existing qualified homeowners who are in default or at risk of default due to rate resets or mortgage market conditions, and to authorize lower down payments for such purpose.  The amendment also includes provisions to address problems arising from inflated appraisals.

What a despicable liar and fraud Mr. Frank is.

And what a despicable liar and fraud he has always been.

This article was posted by Steve on Tuesday, April 21st, 2009. Comments are currently closed.

30 Responses to “Frank: Home Ownership Push Was Mistake”

  1. “Affordable rental housing” is a nice way of saying “slum”…

  2. JohnMG says:

    Can’t one of Barney’s “unselfish” friends give him a little “something” and usher him off center stage?

    My considered opinion is that there are no self-respecting democrats left in the world. None! If Frank is the best they can offer, they are either hopelessly ignorant, or deliberately vindictive. Either way, he sucks!

  3. jobeth says:

    I am totally speechless! How can this fancy pants get by with this about face? And he will.

    The libs will completely forget that just months ago he was sicking Acorn on the banks, forcing these loans!

    “We will do everything legally possible to preserve every unit of affordable (rental) housing,” Frank said…”

    Englishqueen said it right…look for more new slums coming to a neighborhood near you. More money will of course be needed to build all these nice new homes for the “poor”.

    Or maybe the government will buy up a load of these foreclosed houses to “integrate” the “poor” into YOUR neighborhood.
    That’s what they have been doing lately. Either way more money will be needed.

    But what really gets me is the quick about face and the gall to lay the blame directly at Bush’s feet…Not surprised, just amazed.

    What kind of brainless idiot does it take to swallow this nonsense?

    • catie says:

      Jobeth, the same 58 million who voted for the Messiah.

    • take_no_prisoners says:

      “What kind of brainless idiot does it take to swallow this nonsense?”
      ROFLMAO–I don’t think he’s ever said whether or not he swallows!

    • jobeth says:

      Take no prisoners…

      Now, now. LOL

      (I sense a common thought process in your last two comments ;-D

  4. proreason says:

    He has already ruined home ownership.

    Now he intends to ruin the rental business.

    When that is done, he will claim there is no choice but for the government to take over and control all housing.

    This man is so filled with shame about his own sick depravities and so filled with rage at people who aren’t ppossesed by his sadistic demons that he will stop at nothing to destroy everything he touches.

    • jobeth says:

      I said before I’m expecting that sometime in the future for someone to tell me we have to leave our (bought) home, because we have bedrooms we aren’t using everynight and some Octomom needs my house with the extra bedrooms.

      My husband and I will only need a one bed room..so we MUST trade.

      I was being sarcastic then…but not anymore…It could happen if Fwank and Obalmy get their way.

    • Liberals Demise says:

      jobeth….my friend!!
      This is a prime example of where to insert your 2nd Amendment right. Believe me when I say, “I am not promoting violence in any way, shape or form.” I did (in younger years) take a vow to protect the Republic and Constitution from all enemies…..domestic….or foreign. To this day, I still take it very seriously any threats to any Americans life or property. Maybe it’s because I am a Jarhead and we are known to take the lest amount of crap from anyone!! Or it could just be that this sort of shiite pisses me off……..the undermining of these United States. We have just cause to worry….but then again you and me (WE) still have our RIGHTS!!
      Sorry ’bout the venting ….I’ve gotta stop a 3 cups of coffee….WHEW!!

  5. Howard Roark says:

    I guess after being upbranded by the young Jewish student last week, poor Barney was left licking his wounds, and perhaps had a rare moment of conscience. But of course, he didn’t have a complete change of heart concerning the banking crisis.

    While he got it right for the first time in his debauched life, he performed yet another lie: he laid the blame at the wrong person, at the wrong time in history. Thanks to Steve’s posting of an article from a source few of us would care to read, The Village Voice, we [surprisingly] see the details of the true origins of what Fwank is now lisping about:

    Andrew Cuomo, the youngest Housing and Urban Development secretary in history, made a series of decisions between 1997 and 2001 that gave birth to the country’s current crisis. He took actions that—in combination with many other factors—helped plunge Fannie and Freddie into the subprime markets without putting in place the means to monitor their increasingly risky investments. He turned the Federal Housing Administration mortgage program into a sweetheart lender with sky-high loan ceilings and no money down, and he legalized what a federal judge has branded “kickbacks” to brokers that have fueled the sale of overpriced and unsupportable loans. Three to four million families are now facing foreclosure, and Cuomo is one of the reasons why. (source: http://sweetness-light.com/archive/the-man-mccain-wants-to-head-the-sec)

  6. JohnMG says:

    This seems like an appropriate place for this missive I received via e-mail.:

    I bought a bird feeder. I hung it on my back porch and filled it with seed. What a beauty of a bird feeder it was, as I filled it lovingly with seed. Within a week we had hundreds of birds taking advantage of the continuous flow of free and easily accessible food.

    But then the birds started building nests in the boards of the patio, above the table, and next to the barbecue.

    Then came the poop. It was everywhere: on the patio tile, the chairs, the table .. everywhere!

    Then some of the birds turned mean. They would dive bomb me and try to peck me even though I had fed them out of my own pocket.

    And others birds were boisterous and loud. They sat on the feeder and squawked and screamed at all hours of the day and night and demanded that I fill it when it got low on food.

    After a while, I couldn’t even sit on my own back porch anymore. So I took down the bird feeder and in three days the birds were gone. I cleaned up their mess and took down the many nests they had built all over the patio.

    Soon, the back yard was like it used to be …. quiet, serene….. and no one demanding their rights to a free meal.

    Now let’s see. Our government gives out free food, subsidized housing, free medical care and free education, and allows anyone born here to be an automatic citizen.

    Then the illegal’s came by the tens of thousands. Suddenly our taxes went up to pay for free services; small apartments are housing 5 families; you have to wait 6 hours to be seen by an emergency room doctor; your child’s second grade class is behind other schools because over half the class doesn’t speak English.

    Corn Flakes now come in a bilingual box; "I" have to ‘press one ‘ to hear my bank talk to me in English, and people waving flags other than ‘Old Glory’ are squawking and screaming in the streets, demanding more rights and free liberties..

    Just my opinion, but maybe it’s time for the government to take down the bird feeder.

    Evidently we’re destined to continue cleaning up the poop. At least for the next four years

    • proreason says:

      John, this is the perfect parable for America.

      But it’s not just illegal aliens. They’re a problem, but at least the one’s who aren’t baby-machines are willing to work. The bigger problem is something-for-nothing deadbeats with their hands in every pocket but their own. And now bizarro world has arrived and the law is on their side.

  7. BannedbytheTaliban says:

    I think Winston’s Memory Hole is between Frank’s ears. This makes him perfect to be Obama’s Tsar of Truth, or in libspeak, Tsar of Fairness.

  8. BigBad says:

    Barney Frank is gigantically responsible. However this crap didnt just come from the left.

    “Many people are able to afford a monthly mortgage payment, but are unable to make the down payment. So this legislation will authorize $200 million per year in down payment assistance to at least 40,000 low-income families. These funds will help American families achieve their goals, and at the same time, strengthen our communities.”

    That is from President Bush who still somehow claims to be a “conservative”. When the republicans started acting like socialists in their own way I ran FAST. Democrats are not the enemy GOVERNMENT is. Remember that kiddies. Vote FREEDOM first, which means libertarian or not at all.

    • DGA says:

      Libertarian is a good cause. However, while they will always advocate for closing down the borders and withdrawing from being the world’s cop, they will never gain any real steam, and remain a cause. Ignoring the tyrants and despots from around the world who wish death and destruction on this country like BJ Clinton did will only return to bite us in the ass eventually. The Libertarian party will probably help the left get elected again by drawing from the better-of-the-two-evils Republican party’s voting base. Then there’s B. hussein’s policy, roll over and expose your tender underbelly to those who can’t resist attacking you, much worse.

  9. canary says:

    I think he has rabies.

  10. jrmcdonald says:

    Franks is like a neutered dog, he just don’t get it! (Thank you Sam Kennison!) The goverment overpaying for rat traps pushed the price of housing out of working peoples hands, and lead to the ‘housing bubble’ in the first place.

  11. VMAN says:

    There’s an old sci fi book or short story by, I think, Harlan Ellison entitled “I Have No Mouth And I Must Scream”. That is exactly how I feel. I want to scream but who do I scream to? Let’s not just single out Barney. All the democrats and half the Republicans are like this. Once they get caught they make a 180 degree turn and start pointing fingers. The government is out of control and I am very afraid of how this is going to end. It ain’t gonna be pretty.

  12. U NO HOO says:

    “Let’s not just single out Barney.”

    Yes, S-CHIP was passed by a Republican Congress.

  13. pdsand says:

    He either doesn’t know or doesn’t care that every single time the government intervenes, it ruins everything for everybody. Fresh off one disaster of unintended consequences in home ownership, his only reflexive response is to create unintended consequences in rental markets. And then find somebody else to blame for the disasters he caused.

    • Rusty Shackleford says:

      You’ve absolutely nailed it pd. In a capitalistic society, much as the “balance of nature” that liberals are so fond of spouting off about, when an interfering entity comes in and changes the environment, it will still seek out balance. But that balance is now way off-kilter and will tend to cause gross reactions on at least one side. I was saying to myself a few months ago, “With all these houses being foreclosed, I wonder what’s going to happen to the rental market” and…just as you can imagine, the rental market prices start going up.

      That is simple supply and demand.

      Now, like a lying liar that he is, Frank is trying to cover his own tracks with yet MORE government interference. Sadly, people like you and me who need to rent will find the costs going up because the market does that in a capitalistic society. Not that I prefer government control. After all, look what rent control did for Manhattan.

      In any case, when you push on one corner of the blob…the blob gets bigger on another corner. And you can never have enough fingers to stop all the blob’s corners from growing. The best thing you can do is leave it alone but again, something I’ve read at least 5 liberals say in the past couple of days is “Better to try something and fail, than to not try anything at all” and that is fallacious reasoning. It’s like saying “Throw gas on that fire…maybe that will work” to someone who prefers (and knows) to let the fire burn itself out.

      Interestingly, it was the “preservationists” who opposed over-timbering the forests and let them grow under protection which allowed for some of the most vicious, uncontrollable forest fires in the nation’s history, all under the idea that they were “doing something”.

      But doing the wrong thing is just as bad, and often worse, than doing nothing at all.

      Barney….you dipstick….you buffoon….you TOOL……You have all the characteristics of an irresponsible child. You have no sense….and no ability anticipate actual results. You live in LA-LA Land and when things that you created fail miserably, you refuse to accept any responsibility. Wow, this “strict accountability” and “transparency” thing is really working well, ain’t it?

      We the PEOPLE do not need more finger pointing….blame and accusations. We need people who understand what they’re doing. People who have a work history; Who have had a job and have had to pay bills and who understand that the money supply isn’t a bottomless well.

      You are not that person. Pelosi is not that person. Reid is not that person and Obama is definitely not that person.

      What ever made you think you were?

  14. ThreeBus says:

    Anyone listen to Rush Limbaugh today?

    He did Bawny Fwanks voice again.

    I almost fell over! Funny as Heck!

  15. MCHammer says:

    “Rep. Barney Frank, D-Massachusetts, also warned that a Bush-era policy to help low-income families become homeowners instead of renters contributed to the sub-prime mortgage crisis and, ultimately, the larger economic crisis now confronting the country.”

    It’s amazing how Democrats, including Barney Franks think that they can rewrite history, with the help of the media. It was the Clinton-era policy that got us in this housing mess. Bush warned about the danger of such risky financing on many occasions and it was ignored by the Banking Queen and his goons.

    Such feeble lies are appalling.

  16. canary says:

    Maybe he has mad cow disease.

  17. Yarddog1 says:

    It ain’t over yet. H.B. 1479, now under consideration, would extend the Community Reinvestment Act to insurers and other non – financial institutions requiring them to have substantial investments in their portfolios in low to moderate income neighborhoods, as well as be forced to sell a certain portion of their insurance policies in these areas, including automobile, condominium and homeowners insurance. The same thing will happen to insurers that happened to mortgage companies and banks. Not satisfied with destroying the financial community they are now targeting the insurance industry as well. Say bye bye to reasonable premiums for your insurance, and to insurance companies who won’t be able to make a profit.

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