2011-11-30washingtonpost.com

A government watchdog said Fannie Mae and Freddie Mac improperly foreclosed on homeowners and cost the government billions of dollars by not holding major banks to strict underwriting requirements.

The report released Tuesday also said the Federal Housing Finance Agency gave "undue deference" to Fannie and Freddie officials and didn't scrutinize more than $35 million in bonuses and compensation to Fannie and Freddie executives.

...

When a senior examiner at FHFA raised "serious concerns" about Freddie' process for reviewing Bank of America's mortgages, senior Freddie managers disagreed, according to the report. The managers also said they feared losing business from Bank of America if the government became more aggressive in getting money back for bad mortgages, the report said.


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