U.S. details fresh accounting woes at Fannie Mae

[UpInArms]

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8105655

WASHINGTON, April 6 (Reuters) - U.S. regulators on Wednesday outlined a fresh series of accounting missteps at mortgage finance giant Fannie Mae (FNM.N: Quote, Profile, Research) and said it will take the company years to straighten out its books.

The new concerns, based on a special examination of Fannie Mae's books, reflect a "tendency toward overly aggressive interpretation" of accounting rules, and in some instances, "willful disregard" of standards by Fannie Mae, said Armando Falcon, director of the Office of Federal Housing Enterprise Oversight. The regulator has oversight over Fannie Mae and Freddie Mac (FRE.N: Quote, Profile, Research) , its sister government-sponsored mortgage financing provider.

<snip>

Among fresh problems regulators found at Fannie Mae, Falcon said the company improperly recorded some pooled mortgage loans as held-for-investment instead of held-for-sale because of a faulty process in place since 1983.

...more...

[leftofcool]

1. oops! eom