In April 2007, Daniel Mudd, then CEO at Fannie Mae, testified before Congress that the mortgage giant had little exposure to subprime loans. Regulators seized Fannie Mae and Freddie Mac less than 18 months later as they were on the verge of collapse because of losses on soured subprime mortgages. Since then, the government-sponsored entities have drawn more than $150 billion from taxpayers. The Securities and Exchange Commission is looking into Mr. Mudd's statements to lawmakers as part of a broader investigation, a source said.
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