FHFA Report Uncovers Its Own Mishandling of $2.87 Billion GSE-BofA Settlement

``In December 2010, FHFA's Acting Director Edward J. DeMarco, serving in his capacity as conservator of the GSEs, approved two repurchase settlement agreements between the GSEs and Bank of America totaling $2.87 billion... By relying on Freddie Mac's analysis of the settlement without testing the assumptions underlying the GSEs' existing loan review process, FHFA senior managers may have inaccurately estimated the risk of loss to Freddie Mac.''