Glenn Beck suggested on his TV show that House Financial Services Committee chairmanÂ Barney Frank (D-Massachusetts) is deliberately promoting policies that he ought to know will cause a second housing crisis.
To promote home purchases, “he’s asked Freddie [Mac] and Fannie [Mae] to roll back those pesky financial guidelines because those rules, quote, ‘may be too onerous,’” Beck said referring to Frank’s proposal that the two quasi-governmental entities lower their lending standards regarding condominium purchases.
What Barney Frank is advocating â€” which is to say lowering the lending standards in order that more people can have homeownership, that’s been tried as far back as the 1920s by the Republicans and in the 1930s by the Democrats, after World War II by both parties. And in all these cases, the foreclosure rates went up, and nobody who advocated those lower lending standards was ever punished politically.
Frank has long and zealously promoted the disastrous Community Reinvestment Act and been a loyal friend of Fannie Mae and Freddie Mac, whose management ranks have traditionally been dominated by Democratic cronies. He was part of a chorus of lawmakers in Congress who for years pressured Fannie and Freddie to help create a subprime mortgage market.