FHFA Inspector Probes Freddie Mac 'Floater' Investments

Law360, New York (February 1, 2012, 4:56 PM EST) -- A government watchdog said Wednesday that it is looking into whether Freddie Mac, the federally owned mortgage provider, benefited from Wall Street bets that gave it an an incentive to prevent ailing homeowners from refinancing expensive mortgages.

A spokeswoman for the Federal Housing Finance Agency Office of Inspector General confirmed an evaluation of the matter, which came to light earlier in the week when NPR and ProPublica reports suggested the possibility of a conflict of interest.

“We currently have an open evaluation on capital markets, which...
To view the full article, register now.