FHFA Subpoenas Mortgage-Backed Securities Issuers

Law360, New York (July 12, 2010, 3:43 PM EDT) -- The Federal Housing Finance Agency has sent out a raft of subpoenas in an effort to discover whether private issuers of mortgage-backed securities could be liable for major losses suffered at government-backed lenders Fannie Mae and Freddie Mac.

The FHFA issued 64 subpoenas to undisclosed “various entities” seeking documents on the issuance of private-label MBS in which Fannie Mae and Freddie Mac invested, the agency said Monday.

The agency, as conservator for both Fannie Mae and Freddie Mac, hopes to recoup funds from entities found liable,...
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