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Obama, McCain have ties to Fannie, Freddie

The Fannie Mae corporate headquarters is seen in Washington on September 8, 2008. The Bush administration announced it was taking control of the troubled mortgage lending giants Fannie Mae Freddie Mac in an attempt to help save the lenders and reverse the housing and credit crisis. (UPI Photo/Kevin Dietsch)
The Fannie Mae corporate headquarters is seen in Washington on September 8, 2008. The Bush administration announced it was taking control of the troubled mortgage lending giants Fannie Mae Freddie Mac in an attempt to help save the lenders and reverse the housing and credit crisis. (UPI Photo/Kevin Dietsch) | License Photo

WASHINGTON, Sept. 10 (UPI) -- The major-party U.S. presidential candidates have ties to troubled Freddie Mac and Fannie Mae, a review of records indicates.

Both Barack Obama and John McCain point to the government takeover of the Federal Home Loan Mortgage Corp. and the Federal National Mortgage Association as the result of what happens when lobbyists and lawmakers intertwine too closely, The New York Times reported. Both campaigns also vowed to end such coziness.

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However, McCain has many close relationships with and financial donations from current and former lobbyists of the mortgage finance companies, the Times reported. And Obama is second in donations from Freddie Mac and Fannie Mae employees and political action committees.

The Times also reported neither Obama nor McCain has a record of directly challenging the companies. Obama warned of a housing crisis in March 2007, five months before it erupted and the government first took action, the newspaper said, while former Senate GOP staffers said McCain seemed to back away from financial industry-related matters since the savings and loan crises in the late 1980s.

Both senators issued statements supporting U.S. Treasury's takeover of Fannie Mae and Freddie Mac, which was announced during the weekend.

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