WASHINGTON - When the government took over failed mortgage giants Freddie Mac and Fannie Mae this week, it not only dismissed the companies' CEOs, it also fired an army of lobbyists and shut down a pair of political action committees that had contributed millions to members of Congress.

Few politicians have more ties to Freddie and Fannie than Utah Sen. Bob Bennett, who topped all Republicans in campaign contributions from the mortgage duo since 1989.

Bennett, a senior member of the Senate Banking Committee, received $107,999 in contributions from executives at the two companies and their political action committees. Only three members of Congress, all Senate Democrats, received more: Banking Committee Chairman Chris Dodd, presidential candidate Sen. Barack Obama and former presidential candidate Sen. John Kerry.

The analysis by the nonpartisan Center for Responsive Politics, a Washington, D.C., group that tracks money in politics, shows that Freddie and Fannie have given a combined $29.7 million in contributions to national candidates since the 1990 election cycle and spent nearly $200 million on lobbying and campaigning combined.

"Fannie Mae and Freddie Mac, together, formed one of Washington's most robust influence machines, a machine that was apparently shut down by this week's takeover," said Massie Ritsch, the center's spokesman. "When Fannie and Freddie faced collapse, those in government were there to help, which is ironic considering that for so many years the companies' political strategy was to avoid government involvement in their business."

Bennett's spokeswoman Tara Hendershott said the contributions, like those from other major companies, are nothing out of the ordinary.

"It is not unusual for members of Congress to receive contributions from industries that have an interest in a committee's portfolio," she said, referring to Bennett's spot on the banking committee. "Contributions do not influence the senator's votes."

Bennett won't be receiving any more contributions after the government takeover Sunday by the newly created Federal Housing Finance Agency, a move meant to protect the faltering economy. Agency Director James Lockhart announced that all lobbying activity will stop immediately. He also closed down the political action committees.

The decision terminates lobbying contracts held by two former Bennett staffers.

For seven years, Tim Stewart worked for Bennett as a legislative assistant, but in 1999 he left to open Fannie Mae's partnership office in Utah. Bennett's son later worked there.

Stewart is now a Washington, D.C., lobbyist, and Freddie Mac is listed as one of his clients. His firm has received nearly $50,000 this year.

Bennett's former chief of staff Chip Yost retired in 2006 to become a lobbyist. Freddie Mac has been by far his biggest contract. He received $150,000 in 2007 lobbying on secondary mortgage markets. So far in 2008, he has received $50,000.

Stewart and Yost are but two of dozens of outside lobbyist who had contracts with Freddie and Fannie. That is in addition to their combined 20 in-house lobbyists, who regularly fought against more government oversight.

Hendershott said Bennett has voted repeatedly for a stronger government regulator. Congress passed a bill this summer reacting to the housing bubble and the subprime mortgage crisis, which created the new agency within the Treasury Department and gave it the authority to take over these two massive mortgage companies.

In the past, though, Bennett has opposed more government oversight.

Bennett has remained relatively silent on the recent takeover. Hendershott said Bennett believes the role Freddie and Fannie played in the economy needs to be preserved. But beyond that he is waiting to hear more details about the government takeover at a Senate hearing planned for Tuesday.

mcanham@sltrib.com

Fannie Mae and Freddie Mac were post-Depression era creations of Congress to keep money flowing in the housing market by buying mortgages issued by banks and other lenders. But they also acted as privately traded companies that sought to maximize shareholder profits on these mortgage-backed securities.

In recent years Freddie and Fannie have been embroiled in accounting scandals and most recently a massive mortgage collapse spurred by risky loans widely issued.

The Treasury Department's Federal Housing Finance Agency made the historic move to take over management of Fannie and Freddie because officials were concerned that their failure could have crippled the economy. The government will now guarantee to cover any losses.