Monkeys I tell ya. Monkeys.
You'd think Barney and the FHA would have had a little chat before he put together his housing bailout turd.
But that would be competent.
Thanks to Luke over at USNews for the tip. And thanks to Barney Frank for showing us just how well-deserved Congress' record-low approval rating is.
FHA Chief Criticizes Rescue Plan
While most government officials scratch and claw for more authority, Federal Housing Administration Commissioner Brian Montgomery is pouring cold water on a housing rescue plan that would make his agency the linchpin of an expanded federal effort to keep people in their homes.
The House of Representatives last week passed a bill championed by House Financial Services Chairman Barney Frank that would enable struggling borrowers to refinance into more affordable loans guaranteed by the government. The legislation would require a significant expansion of the FHA—an idea recently endorsed by Federal Reserve Chief Ben Bernanke.
But speaking to a roomful of real estate agents this morning at the National Association of Realtors Midyear Legislative Meetings and Trade Expo, Montgomery expressed his opposition to the legislation recently passed by the House:
"As one colleague described it, it is "on steroids" because it throws sound underwriting out the window.
"It moves us toward a federalization of the mortgage market, forces taxpayers to pay for bad loans, and doubles FHA's portfolio, adding hundreds of thousands of risky loans in a Byzantine process that will take years to sort out and create a regulatory nightmare."