ML-Implode News - Fannie Mae, Freddie Mac delaying write-offs of delinquent mortgages

The FHFA said more than a year ago that Fannie and Freddie needed to change their accounting procedures to conform with the way banks write off mortgages that are more than 180 days delinquent. But implementation of the rule has been delayed until Jan. 1, 2015, said Steve A. Linick, the agency's independent inspector general.
"Three years appears to be an inordinately long period to fully implement" the new rule, Linick wrote to acting FHFA Director Edward J. DeMarco on Aug. 5. The letter was made public Monday.

And here we see why:

An increase in the write-offs could eat into the profits posted by the two companies as the housing market recovers, particularly for the three-month period when the accounting changes are first made. And that would affect how much in dividends they could pay to the government on the bailout money.

Are you surprised?

Relevant:

Fannie Mae, Freddie Mac delaying write-offs of delinquent mortgages