Did OFHEO Seek to Embarrass Fannie?

Citing the finding of a HUD inspector general's investigation, Sen. Christopher Bond, R-Mo., says the Office of Federal Housing Enterprise Oversight has waged a public relations campaign to "embarrass" Fannie Mae.IG investigators from the Department of Housing and Urban Development reported that OFHEO Director Armando Falcon Jr. arranged for the release of critical examination information about Fannie, sometimes over the objections of the agency's chief examiner. The HUD IG concluded, however, that Mr. Falcon acted within his authority, and reported that a U.S. attorney has declined to bring a criminal prosecution for an alleged "selective leak" to the news media. "The report reveals that top OFHEO officials have misused their agency and abused the public trust," Sen. Bond said. The Missouri senator chairs the Senate VA-HUD appropriations subcommittee, which has jurisdiction over OFHEO's budget. Director Falcon said he is glad the controversy is over. "I am pleased that a determination has been made that I followed the law, acted wholly within my authority as director, and this is now a closed matter," he said.