Democratic Underground - Fannie Mae misclassified $6.7 bln of loans in 2004

Reply #8: Fannie Mae misclassified $6.7 bln of loans in 2004 [View All]

UpInArms

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Thu Dec-01-05 08:16 AM
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8. Fannie Mae misclassified $6.7 bln of loans in 2004

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-01T111321Z_01_N01114226_RTRIDST_0_FINANCIAL-FANNIEMAE.XML

NEW YORK, Dec 1 (Reuters) - Fannie Mae (FNM.N: Quote, Profile, Research), the largest U.S. home funding company, misclassified about $6.67 billion in single-family loans as multifamily loans last year, the company said in its monthly summary report for October.

Fannie Mae also said it misclassified about $3.68 billion of its single family loans as multi-family loans in the first two months of 2002. In both periods, the company's total mortgage purchases were unchanged.

Fannie Mae is still recovering from a multibillion-dollar accounting scandal that could result in a profit restatement, as large as $11 billion based on accounting errors identified so far.

Fannie, as a government-sponsored enterprise charged by Congress to keep funds flowing in the housing market, buys mortgages from lenders and repackages them for sale to investors as mortgage-backed securities.

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Reply #8: Fannie Mae misclassified $6.7 bln of loans in 2004 [View All]