Fannie under fire from Ofheo
Last month, US mortgage agency Fannie Mae came under fire from its regulator – the Office of Federal Housing Enterprise Oversight (Ofheo) – for accounting and operational failures, about a year after sibling mortgage agency Freddie Mac became embroiled in its own accounting scandal. Despite the damaging news, the market has yet to feel the burn.
On October 6, in a statement before the subcommittee on capital markets, insurance and government-sponsored enterprises, Armando Falcon, director of Ofheo, said the September Ofheo report documented Fannie’s “pervasive and [willing] misapplication of Generally Accepted Accounting Principles as well as critical operational deficiencies”. In particular, under question are the validity of Fannie Mae
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