By THOMAS BEAUMONT AND PETE YOST. The Associated Press
URBANDALE, Iowa -- Rising in polls and receiving greater scrutiny, Republican presidential candidate Newt Gingrich found himself on the defensive yesterday over huge payments he received over the past decade from the mortgage giant Freddie Mac.
Gingrich, who now is near the top in polling on the GOP race, said he didn't remember exactly how much he was paid, but a person familiar with the hiring said it was at least $1.6 million for consulting contracts stretching from 1999 to early 2008.
The person spoke on condition of anonymity in order to address a personnel matter.
Long unpopular among Republicans , federally backed Freddie Mac and its larger sister institution, Fannie Mae , have become targets for criticism stemming from the housing crisis that helped drive the nation deep into recession. Gingrich himself criticized Barack Obama in 2008 for accepting contributions from executives of the two companies.
Speaking with reporters Wednesday in Iowa, Gingrich said he provided "strategic advice for a long period of time" after he resigned as House speaker after GOP losses in the 1998 elections. He defended Freddie Mac's role in housing finance and said, "every American should be interested in expanding housing opportunities."
On Tuesday, a House committee voted to strip top executives of Freddie Mac and Fannie Mae of huge salaries and bonuses and to put them on the same pay scale as federal employees. After disastrous losses, both companies were taken over by the government in 2008, and since then a federal regulator has controlled their financial decisions.
During the 2008 campaign, Gingrich suggested in a Fox News interview that presidential candidate Obama should return contributions he had received from executives of the two companies. He said that in a debate with Obama, GOP presidential nominee John McCain "should have turned and said, 'Senator Obama, are you prepared to give back all the money that Freddie Mac and Fannie Mae gave you?' "
Wednesday, Gingrich sought to portray his history with Freddie Mac as a sign of valuable experience. "It reminds people that I know a great deal about Washington," he said. "We just tried four years of amateur ignorance, and it didn't work very well. So having someone who actually knows Washington might be a really good thing."
At least one of his rivals assailed him over the matter.
"It doesn't matter if it's $300,000 or $2 million, the point is the money that was taken by Newt Gingrich was taken to influence Republicans in Congress to be in support of Fannie and Freddie," Minnesota Rep. Michele Bachmann said in a telephone interview. "While Newt was taking money from Fanny and Freddie I was fighting against them."
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