The chief regulator of Fannie Mae says the mortgage giant uses more than 70 flawed accounting systems in its financial reporting division, a unit that was responsible for a $1.1 billion accounting mistake back in October.In a Feb. 24 letter to Fannie Mae chairman Franklin Raines, the Office of Federal Housing Enterprise Oversight asks the company to correct the problem and submit a remediation plan. "The lack of a fully automated SFAS 149 accounting process as well as the total number of other end user computing systems at Fannie Mae raise concern," OFHEO Director Armando Falcon writes in the letter. (SFAS 149 is an accounting rule.) Fannie's $1.1 billion accounting error, which did not affect earnings, was the result of what the agency calls a "computational miscalculation contained in a spreadsheet formula." The error occurred because a Fannie Mae employee made an unapproved change to a formula in an Excel spreadsheet. A Fannie spokesman said the company is "comfortable" that it will be able to respond to OFHEO's request.
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The RMBS notes benefit from geographic diversity and credit enhancement.
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A Consumer Financial Protection Bureau "waives any alleged noncompliance" by the mortgage company while continuing to dole out redress to borrowers.
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Refinance apps made up more than 40% of all mortgage applications last week, driving an uptick as consumers seek out cheaper mortgage payments.
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The chairman and regulator of Fannie Mae and Freddie Mac pointed to Jermone Powell's recent testimony about renovations to the Federal Reserve's headquarters.
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It's a rare theft of trade secrets complaint by the industry leader, which stayed out of the spate of litigation between competitors during the refinance boom.
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Navy Federal Credit Union will not pay a $15 million fine or $80 million in restitution to service members who were illegally charged surprise overdraft fees when their accounts had sufficient funds.
July 2