Fannie, Freddie Face Billions In Loan Losses, Report Finds

Law360, New York (August 19, 2013, 2:08 PM EDT) -- Fannie Mae and Freddie Mac should immediately reveal losses that could reach into the billions of dollars related to delinquent mortgages that are currently sitting on their books, a watchdog report released Monday said.

According to the report by the Federal Housing Finance Agency's inspector general, Fannie Mae and Freddie Mac are masking potential losses linked to mortgages they hold that are 180 days or more in default by using accounting principles that are not generally accepted to tally them up.

“Appropriately classifying assets according to...
To view the full article, register now.