Daniel Mudd, former CEO of Fannie Mae has said that the structure of the quasi-government agency was flawed and that is what pushed it towards crisis.

He said that the structure of the mortgage-based lending company is such that it jelled well with the sub-prime crisis. Since the house prices were rising at that time, it went out and gave loans which later on turned problematic for it. The house price have fallen 30 per cent ever since.

Daniel was speaking during his hearing in front of the Financial Crisis Inquiry Commission. Other top ex-executives of the bankrupt agency were also present.

This is part of the ongoing investigation and the executives are undergoing a grueling session.

Fannie Mae was put under the government in 2008 when it turned bankrupt.

Friday was the third day of the investigations and during that Robert Levin, former Executive Vice President and Chief Business Officer of Fannie Mae was being questioned. During his interview he said that the firm was undergoing stress which would have thrown it into crisis no matter what business it was into. Others also supported this view.