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Article: Statement errors cost Fannie Mae
- Article from:
- Deseret News (Salt Lake City)
- Article date:
- May 10, 2006
- Author:
CopyrightCopyright 2006 Deseret News (Salt Lake City). Provided by ProQuest LLC. (Hide copyright information)
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Fannie Mae, the biggest source of money for U.S. home loans, said
it will spend $800 million this year on accountants and lawyers to
correct $10.8 billion in bookkeeping mistakes, bringing the total
bill to $1.37 billion.
The money will be used to pay auditor Deloitte & Touche LLP, law
firm Paul, Weiss, Rifkind, Wharton & Garrison and hundreds of
consultants, Fannie Mae said Tuesday in a filing with the Securities
and Exchange Commission. Fannie Mae also said it uncovered errors
related to off-balance sheet trusts used to sell $25.5 billion of
mortgage-backed securities.
Fannie Mae said even with the new mistakes, it meets the capital
reserve requirement mandated by its federal regulator, a ...