The chairman of the House Financial Services subcommittee with oversight of government-sponsored enterprises has accused former Fannie Mae chief executive Franklin Raines of perjuring himself before Congress.Holding a hearing on a new federal report that officially accuses the mortgage giant of accounting fraud, Rep. Richard Baker, R-La., said Tuesday that, "There seems to be clear evidence to my mind that Mr. Raines perjured himself." In the fall of 2004, a then-embattled Mr. Raines testified before Rep. Baker's GSE subcommittee, categorically dismissing charges that the company manipulated accounting rules back in 1998 so it could meet (to the penny) an earnings-per-share goal that triggered $27 million in bonuses paid to its top executives. At times defiant, Mr. Raines told members of the subcommittee then that, "This is a serious allegation, and we strongly disagree with it." Mr. Raines and his attorney did not return telephone calls by MortgageWire.'s deadline. Mr. Raines was forced out by Fannie Mae's board in December 2004.

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