Freddie Mac and Fannie Mae plan to tighten the standards under which they would guarantee mortgages in new condominium developments.
Democratic Representatives Barney Frank and Anthony Weiner have asked them to reconsider, arguing that tighter lending and guarantee standards "may be too onerous."
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It's proof that lawmakers have yet to understand some of the fundamental causes of the recent housing market bubble/bust.
If our leaders do not understand that government interference in private markets was a principal cause of last year's financial crisis, what chance is there that Obama' proposed expansion of our regulatory apparatus will do any good?