January 10, 2010
Fannie Mae is going to be giving more bad-loans and relaxing their lending policies in Florida thanks to their recent government infusion of money.
According to Reuters:
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.
Yikes! “Special approval” in such a key political state. Interesting. It is scary to think that Fannie Mae and Freddie Mac are becoming political instruments..