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|Subject: Agencies Ignoring Write-Offs, Report Says||Date: 8/22/2013 9:26 PM|
|Author: CCinOC||Number: 126120 of 126586|
Fannie Mae and Freddie Mac, which have reported record profits after a taxpayer bailout, are ignoring billions of dollars in potential losses on overdue loans as they take three years to adopt a new accounting system, a government auditor said in a letter made public today. The accounting change should be made immediately and could have a material impact on the companies’ finances, according to the Aug. 5 letter to Federal Housing Finance Agency acting director Edward J. DeMarco from Steve Linick, the regulator’s inspector general.
“Three years appears to be an inordinately long period,” Linick wrote in the letter posted on his office’s website today.
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