Fannie Mae and Freddie Mac combined paid nearly $50 million in legal fees to foreclosure law firms that are now under investigation by the Florida attorney general for possible malpractices, according to data sent to HousingWire by U.S. Rep. Randy Neugebauer (R-TX).
Neugebauer, chairman of the House financial services subcommittee on oversight and investigations, launched an investigation into the legal fees paid for by Fannie Mae and Freddie Mac in defense of officials who led the organizations before and during the financial crisis. The New York Times obtained the information on Monday.
Since the two government-sponsored enterprises were taken into conservatorship in September 2008, they have spent a combined $410.7 million in legal fees alone with $148 million from Fannie and $59 million from Freddie. By comparison, Fannie and Freddie spent $120.8 million in legal fees in the four years leading up to conservatorship.