OFHEO Subpoenas Fannie Documents

The Office of Federal Housing Enterprise Oversight, which is conducting a forensic audit of mortgage giant Fannie Mae, has subpoenaed certain documents from the company, according to a story published in Friday's Wall Street Journal.However, as MortgageWire went to press, both OFHEO and Fannie declined to confirm or deny that any subpoenas had been issued. This past summer OFHEO director Armando Falcon told Congress that Fannie Mae has been less than cooperative with the audit. A company spokesman, when asked by MortgageWire whether Fannie is cooperating with the agency, had no comment. Late last year OFHEO sent Fannie an extensive, three-page document request letter. The letter contained 18 specific requests, including copies "of all communications" (including e-mails) between January 1999 through October 2003 regarding, "deficiencies, shortcomings, weaknesses or failings in accounting practices or financial reporting at Fannie Mae or the failure to comply with accounting policies of Fannie Mae." OFHEO also has requested documents from Fannie's auditor, KPMG.