Evidence Suggests Gingrich Was Right – Freddie Mac Refused His Advice

by Ulsterman

Documents obtained via a Congressional investigation into both Freddie Mac and Fannie Mae point to a possible rift between Former House Speaker Newt Gingrich and Freddie Mac during Gingrich’s eight years as a consultant for the home mortgage giant.



In a recent GOP debate, presidential hopeful Newt Gingrich admitted to working as a consultant for Freddie Mac, an institution now mired in debt and in need of continued taxpayer bailout funds in order to survive. A recently released report by Bloomberg shows that while Speaker Gingrich was acting as an off again on again consultant up until 2008, no lobbying was done by Gingrich on behalf of Freddie Mac.

Last week Gingrich declared he was providing input to Freddie Mac, and warning them of what he termed “insane lending practices” and that he “offered them advice on precisely what they didn’t do.” In the early years of his associating with Freddie Mac, Gingrich provided them a number of written scenarios by which they could improve their relations with Congress – particularly Republicans who wanted to dismantle the government supported mortgage institution. Over time, it appears Gingrich offered less and less information to Freddie Mac – or perhaps as the housing bubble continued to grow, grew frustrated with Freddie Mac’s unwillingness to take his advice.

The Bloomberg report indicates no written material was provided from Gingrich to Freddie Mac between 2006 – 2008, the very time the lending markets began to buckle and eventually collapse.

While Mr. Gingrich certainly was paid well for his consulting work, it also appears, at least to this point, he was being quite honest in his description regarding both his role as a consultant, and Freddie Mac’s repeated unwillingness to follow the advice Gingrich offered regarding their “insane lending practices”.

Will these facts be enough to have the relationship between Gingrich and Freddie Mac dismissed in favor of more important and pressing issues as the GOP race for the White House continues?

Perhaps…