28 GOP Lawmakers Want GSEs to Be Part of Fraud Probe

Led by the ranking minority member on the House Financial Services Committee, 28 Republican members of Congress are asking the Justice Department to include Fannie Mae and Freddie Mac in their targeted probe into mortgage fraud. Led by Rep. Spencer Bachus, R., Ala., the group sent a letter to Attorney General Michael Mukasey, asking whether the Department of Justice is focusing on MBS fraud "and/or accounting fraud committed or aided and abetted by Fannie Mae and Freddie Mac." The 28 also want to know if the government is looking into the 'Friends of Angelo' program where certain elected officials, past and present GSE employees, and others, received breaks on mortgages that were funded by Countrywide Home Loans, Mr. Mozilo's former company. (Countrywide is now owned by Bank of America.) Both GSEs were investigated for fraud in regard to their past accounting scandals. No charges were ever brought. DOJ's wide ranging investigation into mortgage fraud is called "Operation Malicious Mortgage" and includes probes of more than 20 subprime lenders and some Wall Street firms.