Barney Frank: Loans for poor should max at $840K
That's what he's saying here.
Representative Barney Frank, the Massachusetts Democrat who is chairman of the House Financial Services Committee, said in an interview that he planned to introduce legislation next year raising the maximum F.H.A. loan by $100,000, to $839,750. His bill would make the new limits permanent.
Read the rest of the story and you'll see the way these low down-payment loans are fueling speculative buying by people who have no business purchasing near million-dollar properties, who are putting only 3% down (meaning they'll be deeply underwater with only a tiny downtick in housing prices).
But Comrade Frank figures this is all just fine. After all, someone has to protect the poor from those evil bankers who won't let them buy $800,000 homes with no money down. And that someone, friends, is you.