It is funny how easy it is to spend other peoples money. Fannie Mae sure knows that now that they are wards of the state.
We all know that Florida is a toxic waste zone for real estate these days. Sorry to all those in Florida, but facts are facts. Overbuilt and underwater, the market was devestated by a horde of locusts speculators.
We also know that it is ground zero in national elections, especially Presidential ones.
Well, since the bailout of Fannie Mae and Freddie Mac, these companies are now wards of the Federal Government. And thus will be used politically from now on.
That explains why we the Fannie Mae is now relaxing the standards for lending to the decimated Florida condo markets.
Be afraid, be very afraid.
The housing finance giant said it is reassessing hundreds of Florida condo projects to see if they are “sufficiently stable” enough to qualify for funding, even if they don’t meet current requirements, Fannie Mae said in a statement.
These projects would get a “special approval” designation from Fannie Mae, clearing the way for hamstrung Florida lenders to originate loans and help spur a recovery, it said.
“This new initiative is geared toward providing maximum support for Florida’s distressed condo market,” said Karen Pallotta, executive vice president of Fannie Mae’s single family mortgage business. via Reuters
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So does this mean that they are going to setup some more loans that will probably fail? If you cant afford a house, then dont buy one please. Even if you think that the lender or the bank can get you a good deal.
-Tyler
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