HUD launches review of Fannie Mae and Freddie Mac investmentsMortgagePress.comHUD, Fannie Mae, Freddie Mac, GSEs
The U.S. Department of Housing and Urban Development (HUD) held
separate meetings the week of Aug. 7 with Fannie Mae and Freddie
Mac to launch its comprehensive review and evaluation of their
investment activities. As part of the review process, each will be
required to compile and submit accounting data as specified by
HUD issued notification letters to each government-sponsored
enterprise (GSE) on June 14 regarding its intention to investigate
a range of investments, including partnerships, notes receivable
and equity investments, with a focus on investments that lack
transparency on the GSEs financial statements, such as those
classified as other assets and other liabilities. The lack of
transparency as it relates to the GSEs financial dealings is a
HUDs review and evaluation will determine whether investment
activities that were not initiated as part of the GSEs residential
mortgage purchase, guaranty and securitization programs are
authorized activities consistent with their charter authorities and
public purposes. HUD will also examine the extent to which these
investments are subject to the internal investment guidelines
approved by each GSEs board of directors.
HUD anticipates that its review and evaluation of GSE investment
activities will be completed by fall 2007.
For more information, visit www.hud.gov.