Sources: Morris Schneider Wittstadt declaring bankruptcy, closing immediately

Sources: Morris Schneider Wittstadt declaring bankruptcy, closing immediately

LandCastle Title’s operations will not be affected

8 avoidable mistakes first-time homebuyers keep making

Stop doing these things

Trending Thursday: CFPB data collection worse than the NSA?

Slowly but surely GSE shareholders cutting into Treasury, FHFA secrecy
W S
The Ticker

Fannie Mae soft pedals $4B mistakes

pinched-Money
/ Print / Reprints /
| Share More
/ Text Size+

The Street is reporting that Fannie Mae has had $4 billion in mistakes in its earnings statements, going back to last quarter of 2011.

Fannie Mae quietly acknowledged several errors in its financial statements that have largely gone unnoticed, even by sophisticated investors who made daring contrarian bets on the turnaround of the controversial mortgage giant.

Fannie Mae reported the errors, which add up to nearly $4 billion, during five consecutive quarters from the fourth quarter of 2011 through the fourth quarter of 2012 and also in the second quarter of 2010. 

Olga Usvyatsky, an accountant with a research firm called Audit Analytics, believes the errors may point to "control deficiencies" -- a catch-all accounting phrase that encompasses issues such as poorly trained or inadequate staffing, inadequate technological capabilities or ineffective business processes, among other examples.

Source: TheStreet
Read full story

Recent Articles by Trey Garrison

Comments powered by Disqus