OFHEO’s Fannie Report Release Set

The Office of Federal Housing Enterprise Oversight has set the morning of May 23 for the release of its long awaited report on Fannie Mae's $10.8 billion accounting scandal.Fannie's customers -- as well as its critics -- are anxiously waiting to see if the agency unveils any revelations that might spur Congress to pass a tough GSE reform bill that places portfolio limits on the mortgage giant and its "sister" company, Freddie Mac. The agency has promised to release its findings at 10 a.m. An investigation and report by former Senator Warren Rudman placed most of the blame for the accounting scandal on Fannie's former chief financial officer Timothy Howard and comptroller Leanne Spencer. (Mr. Rudman was hired by the GSE's board.) Fannie watchers anticipate that OFHEO could pin more of the blame on former chairman and chief executive Franklin Raines and the company's directors. (None of the three would comment to this publication about the allegations.) A shareholder suit filed against Fannie alleges that its board was compromised by a pattern of "mutually beneficial relationships." (Fannie has sought to have the suit dismissed but so far its requests for dismissal have been denied.)