Gingrich helped lobbyist protect Freddiewww.wnd.com
Former House Speaker Newt Gingrich helped broker a "special arrangement" between Congress and Freddie Mac in which the semi-private mortgage giant continued to enjoy subsidies as long as it made housing more "affordable" for low-income and minority borrowers, according to Freddie Mac insiders who spoke to WND on condition of anonymity.
In fact, Gingrich championed the "affordable-housing" policies he now criticizes for helping inflate the housing bubble that burst painfully in 2008. The one-time Freddie consultant joined Democrats in shielding the agency from reforms that would have reined in its risky mortgage underwriting.
As Freddie fed the subprime mortgage bubble last decade, Gingrich helped its chief lobbyist fend off efforts by fellow Republicans to dismantle, or at least better regulate, the now-failed agency. They devised a two-pronged strategy: buy off Republican critics of its subsidies and affordable-housing mission with donations and fundraising events, while currying favor with Democrats, who sought to protect such government benefits in return for easier financial credit for their constituents.
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