After The New York Times reported last week that taxpayers have spent $160 million defending Fannie Mae, Freddie Mac, and their former executives in civil fraud lawsuits, House oversight don Darrell Issa is springing into action.
Today, Issa sent a letter to Edward DeMarco, acting director of the Federal Housing Finance Agency, demanding an explanation for why these funds were approved.
Fannie Mae and Freddie Mac are said to be prime areas of Issa's interest, and, as his House Oversight Committee delves into the mortgage crisis, we can probably expect a long line of Fannie/Freddie inquiries to follow this one. Last week, the committee began examining "Bailouts and the Foreclosure Crisis," holding its first hearing on that topic.
See the letter below: