Fannie Mae, Freddie Mac Advised to Follow Accounting Practices

Washington, D.C.–Fannie Mae and Freddie Mac are being warned to strictly adhere to a new accounting rule, the Washington Post reports.If the accounting of the government-backed mortgage agencies seems to be a concern, the Office of Federal Housing Enterprise Oversight said it would possibly take action against them–even if their behavior “technically complies with the accounting standard.”Less than a week ago, the OFHEO–Fannie and Freddie’s regulatory agency–found “certain issues” in Freddie Mac’s execution of accounting regulations that “raise concerns” about its capital, which is the financial reserves it must maintain to guard against losses.