An investigation from Rep. Darrell Issa (R-Calif.), top Republican on the House Oversight and Government Reform Committee is uncovering the depth and breadth of the scandals at Fannie Mae and Freddie Mac at the very heart of America’s financial meltdown.
New documents released by Issa show 173 sweetheart deal loans from Countrywide Financial Corporation were given to 42 Fannie and Freddie emplolyees as the company was negotiating exclusive agreement to sell Fannie Mae billions of dollars in questionable, sub-prime mortgages at a discounted rate.
Among those receiving the sweetheart deal loans were Jamie Gorelick, Vice Chair Fannie Mae, James Johnson, Chairman and CEO Fannie Mae, Daniel Mudd Vice Chair and COO Fannie Mae and Franklin Raines Chairman and CEO Fannie Mae.
“As our nation marched down the path leading to a crippling financial crisis, Fannie Mae should have been trying to cool off risky sub-prime lending and protect the economy from a volatile housing bubble,” Issa said. “The sweetheart deals to officials at Fannie Mae and Freddie Mac, however, raise serious doubt that they could have said no to the risky business practices of Countrywide.”
From information released by Issa:
An e-mail discovered in the course of the Committee’s investigation, revealed an exchange between Countrywide employees acknowledging that a loan being offered to former Fannie Mae CEO Daniel Mudd was “sensitive” and that Countrywide was “already taking a loss” by providing Mudd with the loan and warned against incurring any service complaints at risk of “[losing] any benefit we
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