When did the Fannie Mae scandal happen?
On December 18, 2006, U.S. regulators filed 101 civil charges against chief executive Franklin Raines; chief financial officer J. Timothy Howard; and the former controller Leanne G. Spencer. The three were accused of manipulating Fannie Mae earnings to maximize their bonuses.
Who was responsible for Fannie Mae and Freddie Mac?
Fannie Mae and Freddie Mac were created by Congress. They perform an important role in the nation’s housing finance system – to provide liquidity, stability and affordability to the mortgage market.
What was the Fannie Mae scandal?
16, 2011 — The Securities and Exchange Commission today charged six former top executives of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) with securities fraud, alleging they knew and approved of misleading statements claiming the companies had …
Does Freddie Mac and Fannie Mae still exist?
Fannie and Freddie are regulated by the Federal Housing Finance Agency (FHFA), which currently holds the conservatorship for both companies. Some things to keep in mind about these two companies include: The Treasury buys securities from Fannie Mae and Freddie Mac.
Why was Fannie Mae created?
Roosevelt and Congress created Fannie Mae in 1938 in order to buy mortgages from lenders, freeing up capital that could go to other borrowers. Fannie and Freddie raise cash to buy mortgages from a variety of sources, including pension funds, mutual funds and foreign governments.
Where did the name Fannie Mae come from?
So, to break down the acronyms: Fannie Mae, or the Federal National Mortgage Association, came from the acronym FNMA. Fannie for the letters “FN” and Mae for “MA.” Ginnie Mae, or Government National Mortgage Association, came from its acronym GNMA.
What was the real scandal at Fannie Mae?
The real scandal at Fannie Mae. Fannie Mae, the federally chartered company that buys home mortgages and sells them as securites, is receiving a highly public fanny-kicking.
What was the problem with Freddie Mac and Fannie Mae?
After accounting issues arose last summer at Fannie’s smaller and younger sibling, Freddie Mac, the Office of Federal Housing Enterprise Oversight began to examine Fannie Mae’s accounting practices. The result of the probe, detailed in a 211-page report issued last week, paints Fannie Mae as an Enron-in-the-making.
Who was the SEC Director for Fannie Mae?
“Fannie Mae and Freddie Mac executives told the world that their subprime exposure was substantially smaller than it really was,” said Robert Khuzami, Director of the SEC’s Enforcement Division.
What was Fannie Mae’s exposure to subprime loans?
Investors were not told that in calculating the Company’s reported exposure to subprime loans, Fannie Mae did not include loan products specifically targeted by Fannie Mae towards borrowers with weaker credit histories, including more than $43 billion of Expanded Approval, or “EA” loans.