Fannie Mae announced today that it has filed suit against KPMG LLP, the company’s former outside auditor, for negligence and breach of contract in a complaint filed today with the Superior Court of the District of Columbia. Company executives were not available to comment further at press time. Fannie Mae has long been the target of scrutiny from the Office of Federal Housing Enterprise and Oversight (OFHEO) and the U.S. Securities and Exchange Commission (SEC) for accounting and financial misstatements. The company agreed to a comprehensive settlement May 23 with both agencies in which it agreed to pay a $400M penalty and undertake a range of actions including revising accounting practices and limiting its acquisition of mortgage portfolio holdings. On December 6, Fannie Mae announced that it had completed restating its 2004 earnings, and that $6.3 billion in retained earnings were overstated due to accounting errors at the mortgage giant. KMPG served as the lead auditor for the company’s 2004 financial statements and annual report to shareholders. For more information, visit http://www.fanniemae.com/.
Fannie Mae Files Suit Against KPMG
Most Popular Articles
Latest Articles
Spring housing market gets more inventory
We’ve now had back-to-back weeks of healthy housing inventory growth, making spring 2024 much healthier than spring 2023.
-
The best real estate podcasts for agents and brokers in 2024
-
Home sellers saw their profits shrink in the first quarter: Attom
-
If reelected, Trump could seek greater control over Federal Reserve
-
Acra CEO Keith Lind on staying the course amid choppy waters in non-QM
-
HUD walks back some proposed changes to HECM for Purchase program