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Released: September 27, 2011
Freddie Mac loan deal defective, report says
Source: Gretchen Morgensen, N.Y.Times (Free Registration)
Freddie Mac used a flawed analysis when it accepted $1.35 billion from Bank of America to settle claims that the bank misled it about loans purchased during the mortgage boom, according to an oversight report scheduled for release on Tuesday.
The faulty methodology significantly increased the probable losses in Freddie Mac’s portfolio of loans, according to the report, prepared by the inspector general of the Federal Housing Finance Agency, which oversees the company. Freddie Mac and Fannie Mae were taken over by the government in 2008 so additional losses would be shouldered by taxpayers.
Read Full Article: Freddie Mac loan deal defective, report says
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