Fannie Mae Insurer Hit With Suit

Law360, New York (July 6, 2006, 12:00 AM EDT) -- An insurer that allegedly helped embattled mortgage giant Fannie Mae reduce earnings volatility has become the latest target of Fannie’s investors, who have sued the company for its role in the massive fraud at the mortgage lender.

Institutional investor Franklin Templeton Investments has filed a suit alleging that mortgage and debt insurer Radian Group helped Fannie executives manipulate earnings and boost their bonuses.

The complaint, filed as an amendment to an ongoing suit in the U.S. District Court for the District of Columbia, alleges that Radian’s...
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