Fannie Mae Says Multifamily Division Under Investigation

Law360, New York (October 31, 2011, 6:44 PM EDT) -- Fannie Mae is being investigated by the Federal Housing Finance Agency's inspector general for a transaction involving its multifamily financing division, the mortgage lender said Monday.

Fannie Mae put employees involved with the deal on administration leave after it was told of the investigation by the FHFA, the lender said in an emailed statement.

“The investigation is limited in scope, and we are cooperating fully,” Fannie Mae said in the statement.

The inquiry is focused on a single transaction involving a partnership between Fannie Mae and New York-based real estate...
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