Monday, October 06, 2008

James Lockhart: Another Name for "STUPID"

Normal people don't understand big-time Washington 'thinkers' like Lockhart.

The housing agency's director, James Lockhart, suggested Tuesday that mortgage finance companies Fannie Mae and Freddie Mac could loosen lending standards to help more homebuyers qualify for a loan and stabilize the market. The government took control of Fannie and Freddie earlier this month.

BLOOMBERG NEWS James Lockhart, director of the Federal Housing Finance Agency, says Fannie Mae and Freddie Mac may loosen their lending standards after home prices nationwide posted a 5.3 percent drop in July compared with a year ago.

"I expect any changes to reflect both safe and sound business strategy and attentiveness to the [companies'] mission," Mr. Lockhart said Tuesday in testimony prepared for a Senate Banking Committee hearing. He also said that modifying loans for troubled borrowers should be a "high priority."

Lockhart is a BushieBoy, and spent a lot of time adding and subtracting in finance-related positions. The irony: he founded a firm called NetRisk, "a risk-management software and consulting firm serving major financial organizations."

Looser lending standards.....hmmmmm....a loan with NO payback requirements?

1 comment:

GOR said...

"Looser lending standards"...?

That's what got us into much of this mess in the first place!

So, more of the same...? Yep, that'll fix it - make it up on volume...