The Office of Federal Housing Enterprise Oversight says it is likely to sue former top officers who were involved in Fannie Mae's $11 billion accounting scandal.Speaking to the news media at an American Enterprise Institute meeting, OFHEO Director James Lockhart said, "We will more than likely be filing litigation against them," but he did not single out any individuals. When asked if the agency might sue former chairman and chief executive Franklin Raines and former chief financial officer Timothy Howard, he responded, "they are the top two." A source noted that Mr. Lockhart offered no details about possible litigation. In public reports, OFHEO has blamed Messrs. Raines and Howard -- and others -- for the accounting mess at the government-sponsored enterprise. The two men were forced out by Fannie's board in December 2004. To date, they have maintained that they have done nothing wrong.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry