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The Worst Part of This Mortgage Scandal is Fannie Mae

Recorded on July 6, 2012

From The Heritage Foundation, I'm Ernest Istook.

A new report tells how Countrywide Mortgage curried favor in Washington.

7 members of Congress, 3 Cabinet secretaries, and 41 staff members got cheap mortgages from Countrywide, although it's unclear if they knew they got special treatment. But that's not the worst.

Over 150 executives of mortgage giant Fannie Mae got special treatment and repaid favors to Countrywide. The CEO alone got over $10-million in sweetheart deals—more than all the Congressional mortgages combined.

This was part of how Countrywide got billions of dollars from Fannie Mae, selling them mortgage portfolios that often featured bad loans. Then Fannie Mae got bailed out by taxpayers, costing us $93-billion.

The benefits for Fannie Mae executives were far bigger than for a handful in Congress—and it's Fannie Mae that cost you and me $93-billion.

From The Heritage Foundation, I'm Ernest Istook.