Insanity defined...

Doing the same thing and expecting a different result:

Two U.S. Democratic lawmakers want Fannie Mae and Freddie Mac to relax recently tightened standards for mortgages on new condominiums, saying they could threaten the viability of some developments and slow the housing-market recovery, the Wall Street Journal said.

In March, Fannie Mae said it would no longer guarantee mortgages on condos in buildings where fewer than 70 percent of the units have been sold, up from 51 percent, the paper said. Freddie Mac is due to implement similar policies next month, the paper said.

In a letter to the CEO's of both companies, Representatives Barney Frank, the chairman of the House Financial Services Committee, and Anthony Weiner warned that a 70 percent sales threshold "may be too onerous" and could lead condo buyers to shun new developments, according to the paper.

The legislators asked the companies to "make appropriate adjustments" to their underwriting standards for condos, the paper added.

Freddie and Fannie are bankrupt because they underwrote lots of questionable mortgages, all the while cheered on by the likes of Barney Frank. Really, some people just never learn...

It's none of the government's business what threshhold is set to approve new condo mortgages. In fact, for people who say they need to spend trillions to keep the financial sector healthy, they sure aren't reluctant to strongly suggesting they take further risks.