The accounting problems that have rocked Fannie Mae may run even deeper, the federal regulator overseeing the mortgage giant suggested Tuesday.
Uncertainty created by the accounting scandal at the biggest U.S. buyer of home mortgages has the potential of spilling into the housing industry and making mortgages less available for homebuyers, Armando Falcon said in an Associated Press interview.
Government-sponsored Fannie Mae was accused last fall by Falcon’s agency, the Office of Federal Housing Enterprise Oversight, of serious accounting problems and earnings manipulation to meet Wall Street targets.
The Securities and Exchange Commission in December ordered the company to restate earnings back to 2001, a correction that could reach an estimated $11 billion, and new revelations continue to cascade. The Justice Department is pursuing a criminal investigation.
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