The Office of Federal Housing Enterprise Oversight late Wednesday issued its long-anticipated report on Fannie Mae's accounting practices, questioning the mortgage giant's capital adequacy, its past earnings, and the "quality" of its senior management team.The 200-page report, based on a seven-month investigation, suggests that the congressionally chartered Fannie -- the linchpin of the U.S. mortgage market -- will have to restate earnings of the past several years. Among the many allegations in the report are charges that the company created "hedge designations" retroactively, a violation of federal accounting rules. OFHEO also singles out the company's chief financial officer, Timothy Howard, for failing "to provide adequate oversight to key control and reporting functions" at the company. (Mr. Howard has been a major seller of Fannie Mae stock recently, according to company records.) Meanwhile, the Securities and Exchange Commission has launched an informal inquiry into Fannie's accounting practices, and Sandler O'Neill, which has been a long-time bull on Fannie, early Thursday downgraded the stock from Buy to Hold, saying, "On the surface, it does not look good." Fannie's stock was pummeled on Wednesday and was already trading down about $2 a share when the market opened on Thursday.
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In an interview, Candor Technology's Sara Knochel recounts how she applies her childhood interest in languages and numbers to crucial home lending issues.
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Harmonizing standards for liquidity coverage ratios and discount window pledges could prevent the type of strains that led to last year's bank failures, according to a new paper whose authors include former Federal Reserve Govs. Dan Tarullo and Jeremy Stein.
March 27 -
The report seeks to help banks "disrupt rapidly evolving AI-driven fraud," according to Treasury's Nellie Liang. The report found banks have difficulties accounting for AI risks.
March 27 -
The lender accused its former leader of compromising its Fannie Mae seller/servicer number to prevent it from delivering loans.
March 27 -
Equity is entitled to a little over $70,000 worth of damages.
March 27 -
Audited financials, proof of fidelity bonds and errors and omissions insurance must be provided on Ginnie Mae Central after May 13.
March 27