Legal Fees at Fannie Mae Called Avoidable

The New York Times reports:

When the government took over Fannie Mae, it could have voided the contracts that have since left taxpayers liable for more than $100 million in legal bills defending the mortgage company and its former executives, according to statements at a Congressional hearing on Tuesday.

The legal opinion, cited by Representative Randy Neugebauer, Republican of Texas, runs counter to the assertions of officials at the Federal Housing Finance Agency, created to oversee Fannie Mae.

It's time to separate housing from state.