federal housing finance agency office of inspector general's oversight of fannie mae’s...
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7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 1/35
LGLO‖s Dvnrsf`gt dl Loccfn Mon‖s
Enloukt-Ynkotne Kn`ok Rnrvfbns
LNENYOK GD^RFC@ LFCOCBN O@NCBV
DLLFBN DL FCRZNBUDY @NCNYOK
Oueft Ynpdrt8 O^E-9:??-::5 Eotne8 Rnptnminr 2:+ 9:??
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 2/35
LGLO‖s Dvnrsf`gt dl Loccfn Mon‖s Enloukt-Ynkotne Kn`ok Rnrvfbns
Pgy LGLO-DF@ Efe Ugfs OueftFc ?660+ tgn Lnenrok Cotfdcok Mdrt`o`n Ossdbfotfdc Loccfn Mon drNctnrprfsn& nstoikfsgne fts Yntofcne Ottdrcny Cntwdra YOC& tdobqufrn enloukt-rnkotne kn`ok snrvfbns ossdbfotne wftg ldrnbkdsurn+
iocaruptby+ kdss mftf otfdc+ nvfbtfdc+ oce Ynok Nstotn Dwcne YND&bkdsfc`s# Fc Ou`ust 9:?:+ cnws rnpdrts okkn`ne tgot YOC ottdrcnysgoe nc`o`ne fc fcopprdprfotn ldrnbkdsurn probtfbns subg os rdutfcnkylfkfc` loksn edbumncts fc bdurt prdbnnefc`s oce ‛rdid-sf`cfc`#”
Ugn Gdusfc` oce Nbdcdmfb Ynbdvnry Obt dl 9::7 GNYO& nstoikfsgnetgn Lnenrok Gdusfc` Lfcocbn O`ncby LGLO dr O`ncby& os supnrvfsdroce rn`ukotdr dl tgn Nctnrprfsns8 Loccfn Mon oce tgn Lnenrok GdmnKdoc Mdrt`o`n Bdrpdrotfdc Lrneefn Mob&# Dc Rnptnminr <+ 9::7+LGLO pkobne tgn Nctnrprfsns fctd bdcsnrvotdrsgfps dut dl bdcbnrc tgottgnfr entnrfdrotfc` lfcocbfok bdceftfdcs tgrnotncne tgn stoifkfty dl tgnlfcocbfok morants# Os tgn bdcsnrvotdr+ LGLO fs rnspdcsfikn ldrprnsnrvfc` oce bdcsnrvfc` nobg Nctnrprfsn‖s ossnts oce rnstdrfc` tgnmtd o sduce lfcocbfok bdceftfdc fc drenr td suppdrt tgn cotfdc‖s gdusfc`lfcocbn morants# LGLO bdmmncbne o spnbfok rnvfnw dl Loccfn Mon‖sYOC fc kotn 9:?: td entnrmfcn wgntgnr tgn prd`rom mnt solnty ocesducecnss stoceores+ td nvokuotn tgn ensf`c oce fmpknmnctotfdc dl tgnYOC+ oce td fenctfly vukcnroifkftfns fc fts bdctrdk strubturn# Ud eotn+LGLO gos cdt rnknosne tgn rnsukts dl fts rnvfnw#
Dc Lniruory 9>+ 9:??+ Ynprnsnctotfvn Nkfhog N# Bummfc`s rnqunstnetgot tgn LGLO Dllfbn dl Fcspnbtdr @ncnrok LGLO-DF@& nxomfcn‛wfensprnoe okkn`otfdcs dl oiusn iy ### kow lfrms gfrne td prdbnssldrnbkdsurns os port dl” tgn YOC+ oce Loccfn Mon‖s oce LGLO‖s nlldrts‛td fcvnstf`otn tgnsn okkn`otfdcs oce fmpknmnct bdrrnbtfvn obtfdc#”Zursuoct td tgn rnqunst+ LGLO-DF@ pnrldrmne oc oueft td ossnssLGLO‖s dvnrsf`gt dl Loccfn Mon‖s enloukt-rnkotne kn`ok snrvfbnspnrldrmne iy kow lfrms wftgfc tgn YOC#
Pgot LGLO-DF@ YnbdmmncesLGLO-DF@ rnbdmmnces tgot LGLO8 ?& rnvfnw tgn bfrbumstocbnssurrducefc` LGLO‖s cdt fenctflyfc` tgn YOC ldrnbkdsurn oiusns ot ocnorkfnr sto`n oce envnkdp pdtnctfok ncgocbnmncts td fts bopobfty tdfenctfly cnw oce nmnr`fc` rfsas1 9& envnkdp oce fmpknmnctbdmprngncsfvn nxomfcotfdc ufeocbn oce prdbneurns td`ntgnr wftgsupnrvfsdry pkocs ldr enloukt-rnkotne kn`ok snrvfbns1 oce 2& envnkdp ocefmpknmnct pdkfbfns oce prdbneurns td oeernss pddr pnrldrmocbn iyenloukt-rnkotne kn`ok snrvfbns vncedrs tgot govn bdctrobtuokrnkotfdcsgfps wftg idtg dl tgn Nctnrprfsns#
Fc rnspdcsn td LGLO-DF@‖s rnbdmmnceotfdcs+ LGLO prdvfenewrfttnc bdmmncts eotne Rnptnminr 96+ 9:??# Ugn O`ncby o`rnnewftg tgn rnbdmmnceotfdcs# Ugn bdmpkntn tnxt dl tgn wrfttncbdmmncts boc in lduce fc Oppncefx O dl tgfs rnpdrt#
Oueft Ynpdrt8 O^E-9:??-::5 Eotne8 Rnptnminr 2:+ 9:??
Pgot LGLO-DF@ LduceLGLO boc strnc`tgnc fts dvnrsf`gt dl enloukt-rnkotne kn`ok snrvfbns#LGLO rnbd`cfzne tgn fmpdrtocbn dl fts dvnrsf`gt dl tgn Nctnrprfsns'enloukt-rnkotne kn`ok snrvfbns oce roeuokky obbumukotne fcldrmotfdc dctgn ottdrcny cntwdra prd`roms dl Loccfn Mon oce Lrneefn Mob#Gdwnvnr+ LGLO efe cdt sbgneukn bdmprngncsfvn nxomfcotfdc bdvnro`ndl ldrnbkdsurn fssuns+ fcbkuefc` okkn`otfdcs dl oiusn iy YOC kow lfrmsuctfk oltnr cnws stdrfns oidut okkn`ne oiusns surlobne fc Ou`ust 9:?:#LGLO goe cdt prnvfdusky bdcsfenrne rfsas ossdbfotne wftg ldrnbkdsurnprdbnssfc` td in sf`cflfboct# Fcstnoe+ LGLO ldbusne fts nxomfcotfdcrnsdurbns dc ossnssfc` gf`g rfsa ornos subg os tgn Nctnrprfsns‖moco`nmnct dl brneft rfsa#
Oksd+ tgnrn wnrn fcefbotdrs prfdr td Ou`ust 9:?: tgot bduke govn kneLGLO td fenctfly tgn gnf`gtncne rfsa pdsne iy ldrnbkdsurn prdbnssfc`wftgfc Loccfn Mon‖s YOC# Ugnsn fcefbotdrs fcbkuene sf`cflfboctfcbrnosns fc ldrnbkdsurns+ wgfbg obbdmpocfne tgn entnrfdrotfdc dl tgngdusfc` morant1 bdcsumnr bdmpkofcts okkn`fc` fmprdpnr ldrnbkdsurns1bdctnmpdrocndus mnefo rnpdrts oidut ldrnbkdsurn oiusns iy LoccfnMon‖s kow lfrms1 oce puikfb bdurt lfkfc`s fc Lkdrfeo oce nksnwgnrngf`gkf`gtfc` subg oiusns# Oktgdu`g LGLO‖s moco`nmnct gos ynt tdpuikfsg tgn rnsukts dl fts spnbfok rnvfnw dl Loccfn Mon‖s YOC+ tgn
nxomfcnrs‖ prnkfmfcory lfcefc`s bdclfrm tgot ot knost dcn dl tgnsnfcefbotdrs ‒ entnrfdrotfc` fceustry bdceftfdcs ‒ sgduke govn prdvfeneoenquotn worcfc` dl tgn fcbrnosne rfsa ossdbfotne wftg enloukt-rnkotnekn`ok snrvfbns# Fmpdrtoctky+ LGLO gos o cuminr dl bdrrnbtfvn obtfdcspkoccne fc rnspdcsn td tgn spnbfok rnvfnw#
LGLO cnnes td envnkdp prdbneurns td fenctfly oce ossnss cnw drgnf`gtncne rfsas+ os ft sfmuktocndusky oeernssns gfstdrfb rfsas wftg wgfbgft fs lomfkfor# LGLO goe cnftgnr oc dc`dfc` rfsa-iosne supnrvfsdry pkocentofkfc` nxomfcotfdc oce bdctfcudus supnrvfsfdc dl enloukt-rnkotne kn`oksnrvfbns+ cdr lfcokfzne nxomfcotfdc `ufeocbn oce prdbneurns ldr usn fcpnrldrmfc` tor`ntne nxomfcotfdcs oce supnrvfsfdc dl subg snrvfbns#Bdcsnqunctky+ LGLO gos kfmftne ossurocbn tgot ldrnbkdsurn prdbnssfc`oiusns wfkk in prnvnctne oce entnbtne tgrdu`g fts supnrvfsdry obtfvftfns#
Oeeftfdcokky+ LGLO gos cdt envnkdpne ldrmok pdkfbfns td oeernss pddrpnrldrmocbn iy kow lfrms tgot govn rnkotfdcsgfps ‒ nftgnr efrnbtkytgrdu`g bdctrobt dr tgrdu`g fts kdoc snrvfbnrs ‒ wftg idtg dl tgn Nctnrprfsns# LGLO-DF@ fenctflfne fcstocbns wgnrn Lrneefn Mobtnrmfcotne ldr pddr pnrldrmocbn kow lfrms tgot prdbnssne ldrnbkdsurnsdc fts ingokl+ iut Loccfn Mon bdctfcune td usn tgn lfrms# LGLO efe cdtspnbflfbokky rnvfnw subg tnrmfcotfdcs oce+ tgnrnldrn+ kobas ossurocbn tgotkow lfrms wftg gfstdrfns dl pnrldrmocbn enlfbfncbfns ed cdt hndporefzntgn solnty oce sducecnss dl tgn Nctnrprfsns#
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 3/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
2
UOIKN DL BDCUNCUR
UOIKN DL BDCUNCUR ###################################################################################################################### 2
OIIYN\FOUFDCR############################################################################################################################## >
ZYNLOBN ########################################################################################################################################## <
IOBA@YD^CE ################################################################################################################################# 7
LGLO oce Loccfn Mon###################################################################################################################### 7
Yntofcne Ottdrcny Cntwdra ############################################################################################################### 6
Efstrnssne Mdrt`o`n Ncvfrdcmnct##################################################################################################### ?:
Okkn`otfdcs oce Nvfencbn dl Ldrnbkdsurn Oiusns 9::>-Zrnsnct& ############################################################# ?9
Ugn Nctnrprfsns Orn Ynqufrne td Efsbkdsn Dpnrotfdcok Yfsa ############################################################### ?9
9::< Ynpdrt td Loccfn Mon dl Ldrnbkdsurn Oiusns fc Lkdrfeo ############################################################# ?2
9::7 Cnws Ynpdrts #################################################################################################################### ?5
Bdcsumnr Bdmpkofcts Ynbnfvne iy LGLO fc 9::6 ########################################################################### ?5
LGLO Rtoll Fcldrmne dl Ldrnbkdsurn Zrdiknms fc Lkdrfeo fc Hucn 9:?: ################################################ ?>
Ou`ust 9:?: Ortfbkn Ynpdrtfc` dc Nctnrprfsn Ldrnbkdsurn Oiusns ####################################################### ?<
Ynspdcsns td Okkn`otfdcs dl Ldrnbkdsurn Oiusn ################################################################################### ?<
LGLO‖s Nlldrts td Oeernss Okkn`otfdcs dl Oiusn ############################################################################# ?<
Loccfn Mon‖s Nlldrts td Oeernss Okkn`otfdcs dl O iusn ###################################################################### ?7
Burrnct Rtotus dl YOC Dvnrsf`gt ###################################################################################################### ?6
LGLO‖s Dvnrsf`gt###################################################################################################################### ?6
Loccfn Mon‖s Dvnrsf`gt ############################################################################################################## 9:
LFCEFC@R ####################################################################################################################################### 99
?# \orfdus Fcefbotdrs Bduke Govn Kne LGLO td Fenctfly oce Oeernss tgn Gnf`gtncne Yfsa Zdsne iy
Ldrnbkdsurn Oiusns Zrfdr td Kotn 9:?: ####################################################################################### 99
9# LGLO‖s Rupnrvfsdry Zkoccfc` oce @ufeocbn Ed Cdt Oenquotnky Oeernss Enloukt-Ynkotne
Kn`ok Rnrvfbns ####################################################################################################################### 95
2# LGLO Edns Cdt Govn o Ldrmok Zrdbnss ldr tgn Nctnrprfsns td Rgorn Fcldrmotfdc Oidut Zrdiknm Kow
Lfrms################################################################################################################################### 9>
BDCBK^RFDC ################################################################################################################################# 9<
YNBDMMNCEOUFDCR##################################################################################################################### 90
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 4/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
5
DIHNBUF\N+ RBDZN OCE MNUGDEDKD@V ###################################################################################### 97
Oppncefx O ###################################################################################################################################### 2:
LGLO‖s Bdmmncts dc Lfcefc`s oce Ynbdmmnceotfdcs #################################################################### 2:
Oppncefx I ###################################################################################################################################### 29
LGLO-DF@‖s Ynspdcsn td LGLO‖s Bdmmncts ################################################################################ 29
Oppncefx B ###################################################################################################################################### 22
Rummory dl Moco`nmnct‖s Bdmmncts dc tgn Ynbdmmnceotfdcs ####################################################### 22
OEEFUFDCOK FCLDYMOUFDC OCE BDZFNR ##################################################################################### 2>
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 5/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
>
OIIYN\FOUFDCR
EBZ ##################################################################################################### Ensf`cotne Bducsnk Zrd`rom
Loccfn Mon######################################################################### Lnenrok Cotfdcok Mdrt`o`n Ossdbfotfdc
LGLO ########################################################################################### Lnenrok Gdusfc` Lfcocbn O`ncby
LGLO-DF@ ###################################### Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnrok
LGKIocas ###############################################################################################Lnenrok Gdmn Kdoc Iocas
Lrneefn Mob ################################################################## Lnenrok Gdmn Kdoc Mdrt`o`n Bdrpdrotfdc
@RN ############################################################################################ @dvnrcmnct-Rpdcsdrne Nctnrprfsn
GNYO #######################################################################Gdusfc` oce Nbdcdmfb Ynbdvnry Obt dl 9::7
MIR ##################################################################################################### Mdrt`o`n-Iobane Rnburftfns
CRD################################################################################################Cotfdcok Rnrvfbfc` Dr`ocfzotfdc
YOC ###################################################################################################### Yntofcne Ottdrcny Cntwdra
YND##################################################################################################################### Ynok Nstotn Dwcne
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 6/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
<
Lnenrok Gdusfc` Lfcocbn O`ncby
Dllfbn dl Fcspnbtdr @ncnrok
Posgfc`tdc+ EB
ZYNLOBN
LGLO-DF@ wos nstoikfsgne iy GNYO+? wgfbg omncene tgn Fcspnbtdr @ncnrok Obt dl ?607#9
LGLO-DF@ fs outgdrfzne td bdceubt ouefts+ fcvnstf`otfdcs+ oce dtgnr obtfvftfns dl tgn prd`roms
oce dpnrotfdcs dl LGLO1 td rnbdmmnce pdkfbfns tgot prdmdtn nbdcdmy oce nllfbfncby fc tgn
oemfcfstrotfdc dl subg prd`roms oce dpnrotfdcs1 oce td prnvnct oce entnbt lroue oce oiusn fc
tgnm# Ugfs fs dcn fc o snrfns dl ouefts+ nvokuotfdcs+ oce spnbfok rnpdrts puikfsgne os port dl LGLO-DF@‖s dvnrsf`gt rnspdcsfifkftfns td prdmdtn nbdcdmy+ nllnbtfvncnss+ oce nllfbfncby fc tgn
oemfcfstrotfdc dl LGLO‖s prd`roms#
Ugn dihnbtfvn dl tgfs pnrldrmocbn oueft wos td ossnss LGLO‖s dvnrsf`gt dl Loccfn Mon‖s enloukt-
rnkotne kn`ok snrvfbns pnrldrmne iy kow lfrms wftgfc tgn YOC# Rpnbflfbokky+ LGLO-DF@
rnvfnwne LGLO‖s8 ?& wrfttnc pdkfbfns oce prdbneurns ldr fts dvnrsf`gt dl Loccfn Mon‖s YOC1
9& dvnrsf`gt dl Loccfn Mon‖s fctnrcok bdctrdks dvnr fts YOC1 oce '2& supnrvfsdry obtfdcs toanc
bdcbnrcfc` tgn YOC#
Ugn oueft lduce tgot LGLO rnbd`cfzns tgn fmpdrtocbn dl fts dvnrsf`gt dl Loccfn Mon‖s enloukt-rnkotne kn`ok snrvfbns pnrldrmne iy kow lfrms wftgfc tgn YOC+ iut ft cnnes td fmprdvn fts
bopobfty td fenctfly cnw oce nmnr`fc` ornos dl rfsa# Oeeftfdcokky+ LGLO edns cdt govn o
bdctfcudus supnrvfsfdc pkoc dr entofkne nxomfcotfdc `ufeocbn td `dvnrc fts dvnrsf`gt dl tgn
YOC+ oce ft goe cdt obbdmpkfsgne ocy tor`ntne nxomfcotfdcs dl tgn YOC uctfk ft fcftfotne o
spnbfok rnvfnw fc kotn 9:?:# LGLO oksd gos cdt nstoikfsgne o ldrmok prdbnss oce tgn rnqufsftn
pdkfbfns td oeernss bdcbnrcs ossdbfotne wftg kow lfrms tgot govn rnkotfdcsgfps wftg idtg Loccfn
Mon oce Lrneefn Mob td ncsurn tgot fcldrmotfdc fs sgorne obrdss idtg Nctnrprfsns#
LGLO-DF@ inkfnvns tgot tgn rnbdmmnceotfdcs bdctofcne fc tgfs rnpdrt wfkk gnkp tgn O`ncby
obgfnvn mdrn nbdcdmfbok+ nllnbtfvn+ oce nllfbfnct dpnrotfdcs# LGLO-DF@ opprnbfotns tgnossfstocbn dl okk tgdsn wgd bdctrfiutne td tgn oueft#
? Zuikfb Kow Cd# ??:-976#
9 Zuikfb Kow Cd# 6>-5>9#
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 7/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
0
Ugfs oueft wos kne iy Hnccflnr Lofc+ Oueft Efrnbtdr+ wgd wos ossfstne iy Hobdi Anccney+
Oueftdr-fc-Bgor`n#
Ugfs rnpdrt wfkk in efstrfiutne td Bdc`rnss+ tgn Dllfbn dl Moco`nmnct oce Iue`nt+ oce dtgnrs
oce wfkk in pdstne dc LGLO-DF@‖s wnisftn+ www#lglodf`#`dv#
Yussnkk O# You
Enputy Fcspnbtdr @ncnrok ldr Ouefts
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 8/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
7
Uor`ntne Nxomfcotfdcsorn fc-enptg ldbusne
ossnssmncts dl o spnbflfb rfsa dr
rfsa moco`nmnct systnm#
Bdctfcudus Rupnrvfsfdcfs o wfen roc`n dl dc`dfc`
obtfvftfns ensf`cne td mdcftdr
oce ocokyzn oc Nctnrprfsn‖sdvnrokk iusfcnss prdlfkn+fcbkuefc` ocy trnces dr
ossdbfotne nmnr`fc` rfsas#
IOBA@YD^CE
LGLO oce Loccfn Mon
GNYO nstoikfsgne LGLO os supnrvfsdr oce rn`ukotdr dl tgn gdusfc` `dvnrcmnct-spdcsdrne
nctnrprfsns @RNs&8 Loccfn Mon+ Lrneefn Mob+ oce tgn ?9 Lnenrok Gdmn Kdoc Iocas# LGLO‖s
mfssfdc fs td prdvfen nllnbtfvn supnrvfsfdc oce rn`ukotfdc dvnr tgn @RNs td suppdrt tgnfr gdusfc`
lfcocbn oce olldreoikn gdusfc` `doks oce td prdvfen ldr o stoikn oce kfqufe mdrt`o`n morant#
Uor`ntne nxomfcotfdcs oce bdctfcudus supnrvfsfdc dl @RN dpnrotfdcs orn mnocs td obbdmpkfsg
LGLO‖s mfssfdc#
Os o @RN bgortnrne iy Bdc`rnss+ Loccfn Mon‖s mfssfdc fs td
prdvfen kfqufefty+ stoifkfty+ oce olldreoifkfty td tgn ^#R# gdusfc`
oce mdrt`o`n morants# Loccfn Mon obbdmpkfsgns tgfs mfssfdc
iy suppdrtfc` tgn snbdceory mdrt`o`n morant# Ft purbgosns
lrdm kdoc snkknrs rnsfenctfok mdrt`o`ns tgot mnnt fts
ucenrwrftfc` brftnrfo+ oce kdoc snkknrs boc usn tgn sokns prdbnnes
td drf`fcotn oeeftfdcok mdrt`o`ns# Loccfn Mon moy gdke tgnsn
mdrt`o`ns fc fts pdrtldkfd dr moy pobao`n tgnm fctd mdrt`o`n-
iobane snburftfns MIR& tgot orn+ fc turc+ sdke td fcvnstdrs# Fc
nxbgoc`n ldr o lnn+ Loccfn Mon `uoroctnns tgot fcvnstdrs wfkk
rnbnfvn tfmnky poymnct dl prfcbfpok oce fctnrnst dc tgn MIR#
Pftg rnspnbt td tgn kdocs tgot ft gdkes fc fts pdrtldkfd+ Loccfn
Mon bdctrobts wftg kdoc snrvfbnrs td bdkknbt mdrt`o`n poymncts+sn`rn`otn tox oce fcsurocbn nsbrdws+ ldrwore td Loccfn Mon prfcbfpok oce fctnrnst poymncts+ poy
dikf`otfdcs lrdm nsbrdws+ oce gocekn ldrnbkdsurn obtfdcs#
Dc Rnptnminr <+ 9::7+ LGLO pkobne tgn Nctnrprfsns fctd bdcsnrvotdrsgfps oltnr lfcefc` tgot tgnfr
entnrfdrotfc` lfcocbfok bdceftfdcs tgrnotncne tgn stoifkfty dl tgn lfcocbfok morants#2 Ugn LGLO
Efrnbtdr stotne tgot tgn bdcsnrvotdrsgfps wnrn ensf`cne td stoifkfzn tgn Nctnrprfsns iy prnsnrvfc`
oce bdcsnrvfc` tgnfr ossnts wftg tgn dihnbtfvn dl rnturcfc` tgnm td cdrmok iusfcnss dpnrotfdcs#
Os bdcsnrvotdr+ LGLO fs rnspdcsfikn ldr tgn dvnrokk moco`nmnct dl tgn Nctnrprfsns#
2 Omdc` LGLO‖s stotutdry outgdrftfns fs tgn oifkfty dl tgn Efrnbtdr td oppdfct tgn O`ncby os ‛…bdcsnrvotdr dr
rnbnfvnr ldr tgn purpdsn dl rndr`ocfzfc`+ rngoifkftotfc`+ dr wfcefc` up tgn ollofrs dl o rn ukotne nctfty#” ?9 ^#R#B# §
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7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 9/35
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7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 10/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
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7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 11/35
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7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 12/35
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7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 13/35
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7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 14/35
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oksd innc tgn suihnbt dl pncoktfns# Kost ynor+ o hue`n socbtfdcne tgn lfrm %22+>::
ldr lfkfc` <0 loukty mdtfdcs td rnmdvn idrrdwnrs lrdm tgnfr gdmns#
Iorrntt Iuran fc Unxos gos bdmn ucenr fctncsn sbrutfcy iy iocaruptby hue`ns#
Dvnrsnnfc` o bosn kost ynorQ+ o iocaruptby hue`n] nxomfcne tgn lfrm‖s bdceubt fc
nf`gt dtgnr ldrnbkdsurn bosns oce lduce prdiknms fc okk dl tgnm# Fc lfvn dl tgn
mottnrs+ edbumncts sgdw+ tgn lfrm usne fcobburotn fcldrmotfdc oidut enloukts dr
lofkne td ottobg prdpnr edbumnctotfdc wgnc ft mdvne td snfzn idrrdwnrs‖ gdmns#QUgn Hue`n] fmpdsne %0>+::: fc socbtfdcs o`ofcst Iorrntt Iuran ldr o pottnrc dl
nrrdrs fc tgn Qdcn] bosn#
Bdcsumnr Bdmpkofcts Ynbnfvne iy LGLO fc 9::6
Ot knost os norky os Ou`ust 9::6+ LGLO rnbnfvne bdcsumnr bdmpkofcts bdcbnrcfc` purpdrtneky
fcopprdprfotn ldrnbkdsurn probtfbns fcvdkvfc` Loccfn Mon kdocs# LGLO-DF@ fenctflfne 2> subg
bdmpkofcts tgot LGLO rnbnfvne oce rnlnrrne td Loccfn Mon intwnnc Ou`ust 9::6 oce Dbtdinr
9:?:# LGLO-DF@ prnvfdusky lduce tgot LGLO efe cdt ossnss dvnrokk trnces rnkotne td bdcsumnr
bdmpkofcts#?6
?6 Rnn LGLO-DF@+ Ynpdrt dc tgn Oueft dl tgn Lnenrok Gdusfc` Lfcocbn O`ncby‖s Bdcsumnr Bdmpkofcts Zrdbnss O^E-9:??-::?+ eotne Hucn 9?+ 9:??&+ ovofkoikn ldr fcspnbtfdc ot www#lglodf`#`dv$Bdctnct$Lfkns$O^E-9:??-::?#pel+ wgfbg lduce tgot LGLO efe cdt oenquotnky rnbdre+ nvokuotn dr ldkkdw up dc bdcsumnr bdmpkofcts#Oeeftfdcokky+ LGLO efe cdt govn o bdcsdkfeotne systnm ldr rnbnfvfc` bdmpkofcts+ mofctofcfc` tgnm+ prdbnssfc`
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 15/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
?>
LGLO Rtoll Fcldrmne dl Ldrnbkdsurn Zrdiknms fc Lkdrfeo fc Hucn 9:?:
Fc Hucn 9:?:+ LGLO‖s Dllfbn dl Bdcsnrvotdrsgfp Dpnrotfdcs pnrldrmne o twd-eoy lfnke vfsft td
Lkdrfeo td `ofc o inttnr ucenrstocefc` dl ldrnbkdsurn prdbnssfc`+ omdc` dtgnr tgfc`s# LGLO stoll
mnt wftg ?0 rnprnsnctotfvns lrdm tgn mdrt`o`n fceustry+ kn`ok bdmmucfty+ oce lnenrok oce stotn`dvnrcmnct+ fcbkuefc` o kdbok bfrbuft bdurt hue`n wgdm tgn LGLO @ncnrok Bducsnk goe
rnpnotneky su``nstne sgduke in bdctobtne# Ugn rnsuktfc` rnpdrt td LGLO‖s Obtfc` Efrnbtdr+
eotne Hucn 6+ 9:??+ cdtne tgot snrvfbnrs+ ottdrcnys+ oce dtgnr suppdrtfc` pnrsdccnk wnrn
dvnrkdoene wftg tgn vdkumn dl ldrnbkdsurns+ tgn ovnro`n tfmnkfcn ldr ldrnbkdsurns goe fcbrnosne
lrdm ?>: td 5:: eoys+ edbumnctotfdc prdiknms wnrn nvfenct+ oce kow lfrms rnlnrrne td os
‛ldrnbkdsurn mfkks”& wnrn cdt envdtfc` tgn tfmn cnbnssory td tgnfr bosns eun td Loccfn Mon‖s lkot
lnn strubturn oce vdkumn-iosne prdbnssfc` mdenk# Os o rnsukt dl tgn vfsft+ LGLO stoll envnkdpne
o kfstfc` dl obtfdcoikn ftnms ldr LGLO+ fcbkuefc`8
Fcbdrpdrotfc` ldrnbkdsurn bgnbakfsts fctd tgn Nctnrprfsns‖ ottdrcny cntwdra prdbnssnstd ncsurn tgot ottdrcnys orn prnporne fc kn`ok prdbnnefc`s1
Ynvfsfc` tgn Nctnrprfsns‖ bdmpncsotfdc mdenk ldr ottdrcnys td fcbnctfvfzn spnne oce
nllnbtfvncnss oce pncokfzn pddr pnrldrmocbn1 oce
Nc`o`fc` tgn Nctnrprfsns dc snrvfbnr oce kow lfrm& prdiknms subg os8
d kdst$mfsgocekne edbumncts1
d fcoenquotn rnspdcsfvncnss td idrrdwnrs1 oce
d enkoys fc tgn ldrnbkdsurn prdbnss+ fcbkuefc` ldrnbkdsurn sokn bocbnkkotfdcs oce
pddr prnporotfdc ldr ldrnbkdsurn gnorfc`s#
LGLO-DF@ gos lduce cd nvfencbn tgot obtfdc wos toanc dc ocy dl tgnsn ftnms nxbnpt os cdtne
inkdw#
Rgdrtky oltnr tgn Lkdrfeo vfsft+ LGLO cdtflfne sncfdr Loccfn Mon dllfbfoks oidut tgn rnsukts dl tgn
vfsft+ fcbkuefc` tgot8 ‛ottdrcnys orn fcbrnosfc`ky ucprnporne wgnc tgny nctnr tgn bdurtrddm n#`#+
tgny edc‖t govn tgn cdtn+ edc‖t acdw fl tgn idrrdwnr gos innc dllnrne GOMZ Qo kdoc
mdeflfbotfdc]+ snrvfbn gos innc bocbnkkne+ ntb#& wgfbg bousn ldrnbkdsurn sokn bocbnkkotfdcs oceuktfmotnky knc`tgncs tfmnkfcns#” LGLO efe cdt osa Loccfn Mon ldr o rnspdcsn td tgn fcldrmotfdc
prdvfene bdcbnrcfc` tgn rnsukts dl tgn Lkdrfeo vfsft#
tgnm+ dr trobafc` tgnfr rnsdkutfdc iy tgn Nctnrprfsns# Ugnrnldrn+ oeeftfdcok bdmpkofcts inydce tgn 2> bduke govn innc rnbnfvne iy LGLO#
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 16/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
?<
Ou`ust 9:?: Ortfbkn Ynpdrtfc` dc Nctnrprfsn Ldrnbkdsurn Oiusns
Fc Ou`ust 9:?:+ o wfenky bfrbukotne cnws ortfbkn rnpdrtne tgot Loccfn Mon oce Lrneefn Mob goe
lofkne td dvnrsnn tgnfr cntwdras dl kow lfrms tgot prdbnss ldrnbkdsurns dc tgnfr ingokl#
Rpnbflfbokky+ tgn ortfbkn okkn`ne tgot sdmn dl tgdsn lfrms ‒ fcbkuefc` YOC lfrms ‒ goe lfkneldr`ne edbumncts n#`#+ ollfeovfts oce mdrt`o`n ossf`cmncts& fc huefbfok ldrnbkdsurn
prdbnnefc`s#9: Ugnrnoltnr+ mocy dtgnr prfct oce nknbtrdcfb mnefo rnpdrts ensbrfine sfmfkor
ingovfdr iy kow lfrms rnprnsnctfc` Loccfn Mon oce Lrneefn Mob#
Lnenrok oce stotn rn`ukotdrs oce kow ncldrbnmnct dllfbfoks suisnqunctky fcftfotne prdins fctd
wgntgnr iocas oce ldrnbkdsurn kow lfrms fmprdpnrky snfzne gdmns usfc` lroueuknct dr
fcbdmpkntn popnrwdra# Ldr nxompkn+ fc Ou`ust 9:?:+ tgn Lkdrfeo Ottdrcny @ncnrok occducbne
tgot gfs dllfbn goe koucbgne fcvnstf`otfdcs fctd okkn`otfdcs dl uclofr oce enbnptfvn ldrnbkdsurn
probtfbns fcvdkvfc` tgrnn Lkdrfeo kow lfrms# Ugn tgrnn kow lfrms wnrn port dl Loccfn Mon‖s YOC
oce fcbkuene tgn Kow Dllfbns dl Eovfe H# Rtnrc+ Z#O# tgn Rtnrc Kow Lfrm&#
Ynspdcsns td Okkn`otfdcs dl Ldrnbkdsurn Oiusn
LGLO‖s Nlldrts td Oeernss Okkn`otfdcs dl Oiusn
Fc Cdvnminr 9:?:+ LGLO fcftfotne bdcburrnct spnbfok rnvfnws dl Loccfn Mon‖s YOC oce
Lrneefn Mob‖s Ensf`cotne Bducsnk Zrd`rom EBZ& rfsa moco`nmnct probtfbns# Ugn prfmory
dihnbtfvn dl tgnsn rnvfnws wos td entnrmfcn wgntgnr tgn ottdrcny cntwdra prd`roms mnt solnty
oce sducecnss stoceores# Ugn rnvfnws nvokuotne tgn ensf`c oce nxnbutfdc dl tgn nxfstfc`
lromnwdras+ fenctflfne vukcnroifkftfns fc tgn bdctrdk strubturn+ oce ossnssne tgn rnbnctncgocbnmncts td tgn lromnwdras oedptne fc 9:?:#
Ugn O`ncby bdcbkuene fts rnvfnw fc Hocuory 9:??+ oce O`ncby nxomfcnrs edbumnctne tgnfr
lfcefc`s fc o mnmdroceum oce vnriokky irfnlne Loccfn Mon oidut tgn lfcefc`s# Omdc` dtgnr
tgfc`s+ tgn nxomfcnrs bdcbkuene tgot Loccfn Mon bduke govn rnobtne td ldrnbkdsurn enlfbfncbfns
sddcnr inbousn+ ‛entnrfdrotfc` fceustry bdceftfdcs dvnr tgn post snvnrok ynors sgduke govn
prdvfene oenquotn worcfc` td tgn @RNs td rnvfnw pdkfbfns+ prdbnssns+ oce bdctrdks dl dtgnr
vncedrs oce bductnrportfns fcbkuefc` kow lfrms#”9?
9: Loccfn oce Lrneefn‖s Ldrnbkdsurn Iordcs+ Mdtgnr Hdcns+ Ou`ust 5+ 9:?:#
9? Ugn O`ncby bdmmucfbotns fts spnbfok rnvfnw lfcefc`s td tgn Nctnrprfsns tgrdu`g o ‛bdcbkusfdc knttnr#” Ugfs knttnr
fcbkuens tgn lfcefc`s lrdm tgn rnvfnw+ o ‛supnrvfsdry rotfc`” iosne dc tgn rnmnefotfdc nlldrt cnbnssory td oeernss
tgn fenctflfne wnoacnssns+ oce rnbdmmnceotfdcs ‒ bokkne ‛Mottnrs Ynqufrfc` Ottnctfdc#”
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 17/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
?0
LGLO nxomfcnrs oksd lduce tgot Loccfn Mon‖s nxfstfc` bdctrdk strubturn ldr YOC efe cdt mnnt
solnty oce sducecnss stoceores fc o cuminr dl ornos8
Loccfn Mon goe cdt pnrldrmne o ldrmok bdst-incnlft ocokysfs td entnrmfcn fl tgn YOC
fs bdst nllnbtfvn f#n#+ fl tgn edbumnctne incnlfts dl tgn prd`rom dutwnf`gne fts
fcgnrnct rfsas+ subg os tgn kn`ok rfsa tgot Loccfn Mon bduke in gnke kfoikn ldr tgn
obtfdcs dl tgn YOC portfbfpocts&#
Zrfdr td tgn mnefo rnpdrts tgot ldkkdwne tgn mo`ozfcn ortfbkn fc Ou`ust 9:?:+ Loccfn
Mon goe fcoenquotn bdctrdks fc pkobn td prnvnct dr entnbt ldrnbkdsurn oiusns subg os
loksn ossf`cmnct ollfeovfts# Rfcbn tgnc+ ft gos envnkdpne bdctrdks td prnvnct dr entnbt
ldrnbkdsurn edbumnctotfdc fssuns omdc` tgn YOC kow lfrms+ iut tgnsn bdctrdks orn
ynt td in lukky fmpknmnctne#
Loccfn Mon goe cdt envnkdpne oenquotn prdbneurns ldr tgn YOC+ subg os prdbneurns
ldr ?& entnrmfcfc` wgntgnr o kow lfrm sgduke in oeene td dr rnmdvne lrdm tgn YOC+
9& bdceubtfc` dvnrsf`gt dl YOC portfbfpocts iy fts Cotfdcok Rnrvfbfc` Dr`ocfzotfdc
CRD&+ 2& pnrldrmfc` dcsftn vfsfts td kow lfrms iy Loccfn Mon‖s fctnrcok kn`ok
enportmnct+ oce 5& enlfcfc` stnps tgot dvnrsf`gt nmpkdynns must toan fl tgny ucbdvnr
oc fssun subg os fmprdpnr prnporotfdc oce$dr cdtorfzotfdc dl edbumncts usne fc
ldrnbkdsurn prdbnnefc`s#
Loccfn Mon goe cdt envnkdpne bdmprngncsfvn trofcfc` mocuoks ldr tgn kow lfrms
portfbfpotfc` fc YOC#
Loccfn Mon‖s dc`dfc` mdcftdrfc` dl kow lfrms wos fcoenquotn# Oltnr kow lfrms
bdmpkntne tgnfr oppkfbotfdcs oce wnrn obbnptne fctd tgn YOC+ tgnfr rnpdrtfc` oce
Loccfn Mon‖s mdcftdrfc` dl tgnm wos knss tgoc sotfslobtdry# Fl o kow lfrm snkl-
rnpdrtne cd fssuns os ft prdbnssne bosns+ tgnc Loccfn Mon prnsumne tgn lfrm wos
edfc` o `dde hdi#
Oktgdu`g tgn O`ncby irfnlne Loccfn Mon moco`nmnct oce LGLO-DF@ dc tgn rnsukts dl fts
spnbfok rnvfnw+ o lfcok rnpdrt gos cdt innc puikfsgne dr rnknosne td tgn Nctnrprfsn# LGLO fs stfkk
enkfinrotfc` dc tgn inst bdursn dl obtfdc bdcbnrcfc` Loccfn Mon‖s YOC#99
99 Eurfc` tgn somn tfmn lromn os LGLO‖s spnbfok rnvfnw+ tgn Lnenrok Ynsnrvn Rystnm+ tgn Dllfbn dl tgn Bdmptrdkknr
dl tgn Burrncby+ tgn Dllfbn dl Ugrflt Rupnrvfsfdc+ oce tgn Lnenrok Enpdsft Fcsurocbn Bdrpdrotfdc bdceubtne o rnvfnwdl ldrnbkdsurn probtfbns+ wgfbg ldbusne dc ?5 lnenrokky-rn`ukotne mdrt`o`n snrvfbnrs# Ugn rnsuktfc` rnpdrt+ Fctnro`ncby Ynvfnw dl Ldrnbkdsurn Zdkfbfns oce Zrobtfbns+ fssune fc Oprfk 9:??+ fenctflfne fcoenquotn mdcftdrfc`oce bdctrdks td dvnrsnn ldrnbkdsurn obtfvftfns bdceubtne dc ingokl dl snrvfbnrs iy nxtnrcok kow lfrms dr dtgnr tgfre- porty vncedrs oce efsbkdsne ncldrbnmnct obtfdcs toanc# Rnn www#dbb#trnos#`dv$cnws-fssuocbns$cnws-
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 18/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
?7
Loccfn Mon‖s Nlldrts td Oeernss Okkn`otfdcs dl Oiusn
Loccfn Mon gos oksd fcftfotne muktfpkn nlldrts td oeernss ldrnbkdsurn oiusn fssuns# Ugnsn nlldrts
fcbkuen8 ?& ouefts oce rnvfnws dl YOC kow lfrms1 9& qunstfdccofrns td tgn YOC kow lfrms1 oce
2& YOC bdmpkfocbn dvnrsf`gt ncgocbnmncts#
?# Ouefts oce Ynvfnws dl YOC Kow Lfrms8 In`fccfc` fc norky 9:?:+ Loccfn Mon
fcftfotne bnrtofc kdss mftf`otfdc obtfvftfns ossdbfotne wftg fts enloukt-rnkotne kn`ok snrvfbns#
Obbdrefc` td tgn Nctnrprfsn+ ft gfrne o tgfre-porty vncedr td pnrldrm ouefts dl kow lfrms fc tgn
YOC+ oce tgn ouefts ldbusne dc bdmpkfocbn wftg nc`o`nmnct knttnrs# Ugn ouefts fcbkuene
rnvfnw dl lnns oce bdsts bgor`ne1 tgn obburoby dl tgn koc`uo`n usne fc ldrnbkdsurn pknoefc`s td
ensbrfin tgn stocefc` dl tgn snrvfbnr1 oce bdmpkfocbn wftg stotn ldrnbkdsurn prdbnssns#
Loccfn Mon oksd rntofcne o kow lfrm td envnkdp o kn`ok bdmpkfocbn bgnbakfst oce wdra wftg
Loccfn Mon‖s ottdrcnys td bdceubt kftf`otfdc rnvfnws ot tgn kor`nst YOC lfrms fc Lkdrfeo#92 Ugn
kow lfrm‖s dihnbtfvn wos td pnrldrm ldrnbkdsurn oce kftf`otfdc kdoc lfkn rnvfnws ot snvnrok YOC
kow lfrms# Ocdtgnr kow lfrm wos rntofcne td bdceubt o rnvfnw dl tgn ldrnbkdsurn oce bdcsumnr
iocaruptby prdbnssns fc tgn ^cftne Rtotns# Ugn dihnbtfvn dl tgfs rnvfnw wos td fenctfly kn`ok
rfsas fc tgn ldrnbkdsurn oce bdcsumnr iocaruptby prdbnssns oce td fenctfly wgfbg dl tgdsn rfsas
wnrn tgn mdst snrfdus ldr Loccfn Mon#
Ugrdu`g Hucn 2:+ 9:??+ bdctrobtdrs rntofcne iy Loccfn Mon govn bdceubtne 56 dcsftn rnvfnws dl
kow lfrms# LGLO-DF@ snknbtne oce rnvfnwne tgn bdctrobtdr‖s r npdrts ldr ldur YOC kow lfrms#95
Ugn bdctrobtdrs edbumnctne tgnfr wdra fc vorfdus rnpdrts oce mnmdroceums td Loccfn Mon#
LGLO-DF@ ossnssne wgntgnr tgn ouefts oce rnvfnws prdvfene Loccfn Mon wftg fcldrmotfdcoidut tgn enlfbfncbfns dr dpnrotfdcok wnoacnssns tgot moy govn bdctrfiutne td fmprdpnr
prnporotfdc oce cdtorfzotfdc dl edbumncts usne fc ldrnbkdsurn prdbnnefc`s# LGLO-DF@
entnrmfcne tgot tgn rnpdrts rnvfnwne mfssne tgn dppdrtucfty td bdclfrm oce prdvfen o inttnr
ucenrstocefc` dl tgn okkn`otfdcs dl ldrnbkdsurn oiusns# Fcstnoe+ tgn ouefts oce rnvfnws wnrn
corrdwky ldbusne dc ornos subg os ottdrcny lnns oce nc`o`nmnct knttnr fssuns n#`#+ eoto
prdtnbtfdc bdctrdks&+ rotgnr tgoc dc mdrn suistoctfvn quokftotfvn fssuns rn`orefc` ldrnbkdsurn
prdbnssfc` fc bdmpkfocbn wftg oppkfboikn kows oce rn`ukotfdcs# Os o rnsukt+ LGLO-DF@
rnknosns$9:??$cr-dbb-9:??-50o#pel# Ugn fctnro`ncby rnvfnw fenctflfne solnty oce sducecnss wnoacnssns fc tgndvnrsf`gt dl vncedrs dl enloukt-rnkotne kn`ok snrvfbns# Oktgdu`g tgn lnenrok iocafc` rn`ukotdrs prdbnnene wftgncldrbnmnct obtfdcs o`ofcst snrvfbnrs mdctgs o`d+ LGLO gos cdt ynt lfcokfzne fts spnbfok rnvfnw oce rnkotne obtfdcs#
92 Ugn kftf`otfdc rnvfnws wnrn suisnqunctky nxpocene td ncbdmposs kow lfrms kdbotne fc Cnw Vdra+ Cnw Hnrsny+Mfbgf`oc+ Znccsykvocfo+ oce Dgfd#
95 Ugn snknbtfdc wos iosne dc tgn kow lfrm‖s bosnkdoe sfzn+ okkn`ne fssuns+ oce oueftdr‖s hue`mnct#
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 19/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
?6
bdcbkuene tgn ouefts oce rnvfnws efe cdt knce tgnmsnkvns td fenctflyfc` brftfbok dpnrotfdcok
fssuns fcbkuefc` rfsas ossdbfotne wftg fmprdpnr ldrnbkdsurns#
9# _unstfdccofrns td YOC Kow Lfrms8 Fc kotn 9:?:+ oltnr ossnssfc` tgn okkn`otfdcs
dl ldrnbkdsurn oiusn iy tgn Rtnrc Kow Lfrm fc Lkdrfeo+ os efsbussne oidvn+ Loccfn Mon nmofkne
qunstfdccofrns td okk YOC kow lfrms osafc` tgnm td rnpdrt fl tgny goe fssuns sfmfkor td tgn Rtnrc
Kow Lfrm# Rpnbflfbokky+ tgn qunstfdccofrn osane tgn kow lfrms td entnrmfcn wgntgnr8 ?& tgnfr
pdkfbfns+ prdbneurns+ oce prdbnssns orn oenquotn td ncsurn tgot tgn edbumncts prnporne oce
nxnbutne fc bdccnbtfdc wftg ldrnbkdsurn prdbnnefc`s orn fc bdmpkfocbn wftg oppkfboikn kow1 oce
9& tgnfr nmpkdynns oce$dr tgfre portfns rnspdcsfikn ldr prnporfc` oce nxnbutfc` subg edbumncts
ldkkdwne oce bdctfcun td ldkkdw fts pdkfbfns+ prdbneurns+ oce prdbnssns# Mdst dl tgn YOC lfrms
obacdwkne`ne rnbnfpt dl tgn qunstfdccofrn oce$dr prdvfene bdclfrmotfdc tgot tgnfr pdkfbfns oce
prdbneurns orn fc bdmpkfocbn# Rnvnrok kow lfrms+ gdwnvnr+ efsbkdsne ldrnbkdsurn prdbnss fssuns+
oce Loccfn Mon stotne tgot ft wdrane wftg tgnsn kow lfrms td ucenrstoce tgnfr fssuns oce td
envnkdp pkocs dl rnmnefotfdc# Oeeftfdcokky+ Loccfn Mon gos enefbotne stoll td mdcftdr tgn prd`rnss fc rnmnefotfc` tgnsn fssuns#
2# YOC Bdmpkfocbn Dvnrsf`gt Ncgocbnmncts8 Fc norky 9:??+ Loccfn Mon‖s
fctnrcok oueftdrs fcftfotne tgnfr dwc rnvfnw dl tgn YOC# Ugn fctnrcok oueft wos prfmorfky ldbusne
dc tgn nllnbtfvncnss dl Loccfn Mon‖s dvnrsf`gt dl fts snrvfbnrs# Obbdrefc` td Loccfn Mon
dllfbfoks+ tgn fctnrcok oueft lfcefc`s wnrn sfmfkor td tgn lfcefc`s dl LGLO‖s spnbfok rnvfnw
nxomfcnrs# Ugn fctnrcok oueft tnom bdmmucfbotne fts lfcefc`s td Loccfn Mon‖s CRD+ wgfbg fs
tosane wftg okk dvnrsf`gt dl tgn YOC# Dllfbfoks lrdm CRD stotne tgot tgny in`oc oeernssfc` tgn
fctnrcok oueft‖s lfcefc`s oce rnbdmmnceotfdcs+ fcbkuefc`8 ossf`cfc` dwcnrsgfp dl tgn YOC oce
ensf`cfc` o stollfc` pkoc1 brnotfc` o rfsa-iosne prdbnss ldr dc-sftn rnvfnws1 envnkdpfc` o lfrm
pnrldrmocbn oce bdmpkfocbn mdcftdrfc` pkoc1 oce ossnssfc` pdkfbfns oce prdbneurns `dvnrcfc`
enloukt-rnkotne kn`ok snrvfbns#
Burrnct Rtotus dl YOC Dvnrsf`gt
LGLO‖s Dvnrsf`gt
LGLO rnbnctky ucenrwnct oc dr`ocfzotfdcok rnstrubturfc`# Obbdrefc` td LGLO‖s Obtfc`
Efrnbtdr+ ‛…tgn cnw strubturn wfkk ncgocbn dur bopoifkfty td mnnt dur brftfbok mfssfdc+ prdvfen
`rnotnr bornnr dppdrtucftfns ldr dur stoll+ oce moan us mdrn nllfbfnct oce bdcsfstnct fc dur rn`ukotdry obtfvftfns#” Rpnbflfbokky+ tgn bdrn nxomfcotfdc tnoms dc-sftn ot nobg Nctnrprfsn wfkk in
rnspdcsfikn ldr okk Nctnrprfsn fssuns+ fcbkuefc` YOC dvnrsf`gt# Dtgnr O`ncby `rdups+ kfan tgn
brneft rfsa oce dpnrotfdcok rfsa tnoms+ wfkk suppdrt tgn bdrn nxomfcotfdc tnoms# Oeeftfdcokky+ tgn
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 20/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
9:
O`ncby fs eroltfc` cnw nxomfcotfdc pdkfbfns oce prdbneurns+ wgfbg orn nxpnbtne td in
bdmpkntne iy tgn nce dl 9:?9+ oce tgnsn pdkfbfns wfkk oeernss enloukt-rnkotne snrvfbn vncedrs#
Ugn O`ncby oksd gos efrnbtne Loccfn Mon td rnbdup sdmn dl tgn bdsts oce lnns dc fts ldrnbkdsne
kdoc pdrtldkfd os wnkk os oeernss ldrnbkdsurn-rnkotne enlfbfncbfns# Ldr nxompkn+ fc 9:?:+ tgn
O`ncby efrnbtne Loccfn Mon td fmpdsn bdmpncsotdry lnns o`ofcst tgn snrvfbnrs ldr vfdkotfc`
ldrnbkdsurn tfmnkfcn kfmfts#
Loccfn Mon‖s Dvnrsf`gt
Loccfn Mon stotne tgot ft ncgocbne fts dvnrsf`gt obtfvftfns fc 9:?: iy nxpocefc` fts kn`ok
enportmnct oce CRD#9> Ugn kn`ok enportmnct oeene < stollnrs 2 lukk-tfmn ottdrcnys+ o bdctrobt
ottdrcny+ o porokn`ok+ oce o iusfcnss ocokyst& td dvnrsnn tgn cntwdra+ oce CRD fcbrnosne fts stoll
sfzn lrdm < td 97#
Fc Hucn 9:??+ CRD oksd envnkdpne o stollfc` ocokysfs fc rnspdcsn td Loccfn Mon‖s fctnrcok oueft
rnpdrt# O brftfbok nknmnct dl tgn stollfc` pkoc fs oc ocokysfs dl gdw CRD wfkk fcbdrpdrotn any
erfvnrs wgnc ossnssfc` tgn cnne td oehust stollfc` knvnks ldr YOC `dvnrcocbn purpdsns# Ugnsn
any erfvnrs fcbkuen+ iut orn cdt kfmftne td+ octfbfpotne vdkumns f#n#+ ldrnbkdsurns+ snrfdus
enkfcquncbfns&+ trncefc` dl cdc-rdutfcn kftf`otfdc fssuns+ oeeftfdcok YOC `dvnrcocbn prd`rom
rnqufrnmncts+ oce cnw fctnrcok oueft dr LGLO rnqufrnmncts#
Ot tgn efrnbtfdc dl LGLO+ Loccfn Mon in`oc fmpdsfc` bdmpncsotdry lnns o`ofcst bnrtofc
snrvfbnrs fc 9:?:#9< Bdmpncsotdry lnns orn o rnmney usne iy Loccfn Mon o`ofcst tgn snrvfbnrs
ldr ‛irnobg dl snrvfbfc` dikf`otfdcs#”90 Oktgdu`g Loccfn Mon edns cdt fmpdsn bdmpncsotdry
lnns efrnbtky o`ofcst kow lfrms+ tgn lfrms govn bdmpncsotne Loccfn Mon ldr nrrdrs+ subg os
lofkfc` td ife tgn prdpnr omduct ot o ldrnbkdsurn sokn oce lofkfc` td prdvfen cdtfbn td suidrefcotn
kfnc gdkenrs fc bdccnbtfdc wftg tgn ldrnbkdsurn prdbnss# Mdrndvnr+ tgn kow lfrms fcenmcfly
Loccfn Mon o`ofcst kdssns dr eomo`ns fcburrne os o rnsukt dl tgnfr cn`kf`ncbn dr lofkurn td
pnrldrm tgnfr dikf`otfdcs fc obbdreocbn wftg tgn tnrms dl tgn nc`o`nmnct knttnrs# Lfcokky+
9> Loccfn Mon‖s CRD moco`ns tgn Nctnrprfsn‖s kdss mftf`otfdc obtfvftfns tgrdu`g fts rnkotfdcsgfp wftg mdrt`o`nsnrvfbnrs wgd orn tosane wftg snrvfbfc` Loccfn Mon‖s sfc`kn-lomfky `uoroctnn idda dl iusfcnss#
9< Obbdrefc` td Loccfn Mon+ bdmpncsotdry lnns wnrn cdt fmpdsne dc tgn snrvfbnrs prfdr td 9:?:#
90 Obbdrefc` td Loccfn Mon‖s Kncenr Knttnr KK-9:?:-?? eotne Dbtdinr ?+ 9:?:8
Fl Loccfn Mon inkfnvns tgot tgn snrvfbnr fs lofkfc` td bdmpky wftg Loccfn Mon‖s snrvfbfc` rnqufrnmncts+
Loccfn Mon moy pursun o vorfnty dl rnmnefns+ nftgnr td bdrrnbt o spnbflfb prdiknm dr td fmprdvn tgnsnrvfbnr's dvnrokk pnrldrmocbn# Dcn pdssfikn rnmney fs tgn fmpdsftfdc dl o bdmpncsotdry lnn tdbdmpncsotn Loccfn Mon ldr eomo`ns oce td nmpgosfzn tgn fmpdrtocbn Loccfn Mon pkobns dc o portfbukor ospnbt dl tgn snrvfbnr's pnrldrmocbn#
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 21/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
9?
bdcbnrcfc` kow lfrms tnrmfcotne lrdm tgn YOC+ Loccfn Mon fs burrnctky pursufc` rnbdvnry ldr
kdssns bousne iy tgn nrrdrs oce dmfssfdcs dl tgdsn lfrms gocekfc` Loccfn Mon‖s ldrnbkdsurns#
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 22/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
99
LFCEFC@R
LGLO-DF@ lfces tgot8
?# \orfdus Fcefbotdrs Bduke Govn Kne LGLO td Fenctfly oce Oeernss tgn
Gnf`gtncne Yfsa Zdsne iy Ldrnbkdsurn Oiusns Zrfdr td Kotn 9:?:
LGLO efe cdt in`fc td obt dc ldrnbkdsurn oiusn fssuns fcvdkvfc` Loccfn Mon‖s YOC uctfk mfe-
9:?:# Zrfdr td tgot tfmn+ LGLO goe cdt bdcsfenrne rfsas ossdbfotne wftg ldrnbkdsurn prdbnssfc`
td in sf`cflfboct+ oce+ fcstnoe+ goe ldbusne fts kfmftne nxomfcotfdc rnsdurbns dc ossnssfc` gf`g
rfsa ornos subg os tgn Nctnrprfsns‖ moco`nmnct dl brneft rfsa#
LGLO-DF@ inkfnvns tgot tgnrn wnrn muktfpkn fcefbotdrs dl ldrnbkdsurn oiusn rfsa prfdr td 9:?:
tgot bduke govn kne LGLO td fenctfly oce obt norkfnr dc tgn fssun# Mdrndvnr+ LGLO Rupnrvfsdry
Goceidda 9#? rnqufrns ‛Moco`nrs Qtd] envnkdp wdra pkocs tgot orn eycomfb edbumncts+
rnvfnwne oce upeotne os cnbnssory iosne dc Nctnrprfsn iusfcnss prdlfkns+ rfsa ossnssmncts+ oce
nxtnrcok lobtdrs subg os fceustry+ nbdcdmfb+ kn`fskotfvn+ oce rn`ukotdry envnkdpmncts#” Ugnsn
ldrnbkdsurn oiusn fcefbotdrs fcbkuene+ omdc` dtgnr tgfc`s+ tgn entnrfdrotfc` lfcocbfok bdceftfdcs
tgot kne td tgn bdcsnrvotdrsgfp f#n#+ tgn fcbrnosfc` cuminr oce edkkor vokun dl mdrt`o`n enloukts
oce YND fc tgn Nctnrprfsns‖ pdrtldkfds&+ bdcsumnr bdmpkofcts okkn`fc` fmprdpnr ldrnbkdsurns+
bdctnmpdrocndus mnefo rn pdrts oidut ldrnbkdsurn oiusns iy Loccfn Mon‖s kow lfrms+ oce puikfb
bdurt lfkfc`s fc Lkdrfeo oce nksnwgnrn okkn`fc` subg oiusns#
Cdtwftgstocefc` tgnsn fcefbotdrs+ LGLO efe cdt in`fc td fmpknmnct o rfsa-iosne supnrvfsdry pkoc dl tor`ntne nxomfcotfdcs oce mdcftdrfc` obtfvftfns ossdbfotne wftg tgn Nctnrprfsns‖ enloukt-
rnkotne kn`ok snrvfbns uctfk mnefo rnpdrts in`oc td bfrbukotn wfenky fc Ou`ust 9:?:+ ot wgfbg tfmn
LGLO bdcbkuene tgot rnpdrts dl fmprdpnr ldrnbkdsurn obtfvftfns rnobgne o brftfbok knvnk tgot
suppdrtne lurtgnr obtfdc# Zrfdr td Ou`ust 9:?:+ LGLO stotne ft wos `roeuokky obbumukotfc`
fcldrmotfdc dc tgn ottdrcny cntwdra prd`roms dl Loccfn Mon oce Lrneefn Mob iut efe cdt
ldrmokky ossnss tgn rfsas tgn cntwdras moy govn pdsne td tgnfr solnty oce sducecnss#
Omdc` tgn fcefbotdrs wos tgn entnrfdrotfc` bdceftfdc dl tgn gdusfc` morant# Oktgdu`g
eromotfbokky fcbrnosfc` mdrt`o`n enkfcquncbfns oce rnsuktfc` ldrnbkdsurns prdmptne LGLO td
toan tgn nxtrodrefcory mnosurn dl pkobfc` tgn Nctnrprfsns fctd bdcsnrvotdrsgfps+97
ft efe cdt bousn
97 Ugn purpdsn dl oppdfctfc` tgn bdcsnrvotdr fs td prnsnrvn oce bdcsnrvn Loccfn Mon‖s ossnts oce prdpnrty oce td put ft fc o sduce oce sdkvnct bdceftfdc# Ugn `doks dl tgn bdcsnrvotdrsgfp orn td gnkp rnstdrn bdclfencbn fc tgnNctnrprfsn+ ncgocbn fts bopobfty td luklfkk fts mfssfdc+ oce mftf`otn tgn systnmfb rfsa tgot gos bdctrfiutne efrnbtky tdtgn fcstoifkfty fc tgn burrnct morant# Os bdcsnrvotdr+ LGLO moy toan ocy cnbnssory obtfdc td rnstdrn tgn lfrms td osduce oce sdkvnct bdceftfdc# Ugn bdcsnrvotdr bdctrdks oce efrnbts tgn dpnrotfdcs dl tgn Nctnrprfsns# Ugn
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 23/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
92
tgn O`ncby td ldbus supnrvfsdry strotn`fns dc tgn ldrnbkdsurn prdbnss# Vnt+ os port dl fts spnbfok
rnvfnw dl tgn Nctnrprfsns‖ enloukt-rnkotne kn`ok snrvfbns+ LGLO nxomfcnrs bdcbkuene tgot
entnrfdrotfc` fceustry bdceftfdcs dvnr tgn post snvnrok ynors sgduke govn prdmptne tgn
Nctnrprfsns td rnvfnw tgnfr pdkfbfns+ prdbnssns+ oce bdctrdks dvnr tgnfr enloukt-rnkotne kn`ok
snrvfbns vncedrs# Mdrndvnr+ tgn ldrnbkdsurn spfans tgot bdctrfiutne td tgn bdcsnrvotdrsgfps fcRnptnminr 9::7 bdctfcune td rfsn+ lurtgnr gnf`gtncfc` tgn rfsa dl kdss# Os efsbussne norkfnr snn
Lf`urns ? oce 9&+ lrdm 9::7 tgrdu`g 9:?:+ tgn cuminr dl Loccfn Mon prdpnrtfns fc ldrnbkdsurn
oce fc fts YND pdrtldkfd fcbrnosne suistoctfokky#
Os tgn ldrnbkdsurns fcbrnosne oce YND obbumukotne+ cnws rnpdrts in`oc td bfrbukotn oidut
‛ldrnbkdsurn mfkks#”96 Cnws bdvnro`n dl kow lfrm enlfbfncbfns fc lfkfc` ldrnbkdsurns fcbkuefc`
lfrms wdrafc` dc ingokl dl Loccfn Mon oce Lrneefn Mob& inbomn nspnbfokky prdmfcnct
in`fccfc` fc Ou`ust 9:?:# Cumnrdus cnws ortfbkns wnrn wrfttnc oidut ‛rdid-sf`cfc`+” wgfbg
fcvdkvns nmpkdynns sf`cfc` mdrt`o`n rnkotne edbumncts ot rnbdre spnnes wftgdut vnrflyfc` tgnfr
obburoby1 ldrnbkdsurn mfkks tgot lfkn fcbdmpkntn oce fcobburotn edbumncts+ lroueuknct ollfeovfts+oce fmprdpnr cdtorfzotfdcs1 oce tgn bdcbnokmnct dl acdwc mfstoans lrdm bdurts+ ottdrcnys+ oce
bkfncts# Oeeftfdcokky+ fc kotn 9:?:+ snvnrok dl tgn kor`nst snrvfbnrs fmpdsne o ldrnbkdsurn lfkfc`
mdrotdrfum#
LGLO-DF@ lfces tgot tgnsn fcefbotdrs bduke govn kne LGLO td fenctfly tgn nmnr`fc` rfsa inldrn
tgn rfsn fc mnefo ottnctfdc fc Ou`ust 9:?:# Iosne dc tgn ldrn`dfc`+ LGLO cnnes td envnkdp
prdbneurns td fenctfly oce ossnss cnw dr gnf`gtncne rfsas+ os ft sfmuktocndusky oeernssns gfstdrfb
rfsas wftg wgfbg ft fs lomfkfor# Fc tgn oisncbn dl subg obtfdc+ LGLO gos kfmftne ossurocbn tgot
ldrnbkdsurn prdbnssfc` oiusns wfkk in prnvnctne oce entnbtne tgrdu`g fts supnrvfsdry obtfvftfns#
bdcsnrvotdr moy toan dvnr tgn ossnts dl+ dpnrotn tgn Nctnrprfsns wftg okk tgn pdwnrs dl tgn sgorngdkenrs+ tgnefrnbtdrs+ oce tgn dllfbnrs dl tgnm+ oce bdceubt okk dl tgnfr iusfcnss#
96 O wfenky bfrbukotne Mdtgnr Hdcns ortfbkn lrdm Ou`ust 9:?:+ Loccfn oce Lrneefn‖s Ldrnbkdsurn Iordcs+ wos hustdcn dl mocy cnwspopnr ortfbkns tgot gf`gkf`gtne ldrnbkdsurn oiusns subg os ‛rdid-sf`cfc`#” Norkfnr stdrfns dc tgntdpfb oksd bfrbukotne# Ldr nxompkn+ oce os efsbussne oidvn+ o Morbg 2:+ 9::7+ Cnw Vdra Ufmns rnpdrt+ Ldrnbkdsurn
Mobgfcn Ugrfvns dc Pdns+ cdtne bdmpkofcts dl kow lfrms lfkfc` fmprdpnr dr eupkfbotfvn ldrnbkdsurn oce iocaruptby pknoefc`s oce knvyfc` fcopprdprfotn lnns updc idrrdwnrs#
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 24/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
95
9# LGLO‖s Rupnrvfsdry Zkoccfc` oce @ufeocbn Ed Cdt Oenquotnky
Oeernss Enloukt-Ynkotne Kn`ok Rnrvfbns
Ud eotn+ LGLO gos cnftgnr oc dc`dfc` rfsa-iosne supnrvfsdry pkoc entofkfc` nxomfcotfdc oce
bdctfcudus supnrvfsfdc dl enloukt rnkotne kn`ok snrvfbns+ cdr lfcokfzne nxomfcotfdc `ufeocbn oce prdbneurns ldr usn fc pnrldrmfc` tor`ntne nxomfcotfdcs oce mdcftdrfc` dl subg snrvfbns#
Os o Lnenrok o`ncby+ LGLO fs suihnbt td fctnrcok bdctrdk stoceores tgot gnkp ft mnnt fts
rnspdcsfifkftfns oce mfcfmfzn rfsa ossdbfotne wftg fts prd`roms oce dpnrotfdcs# Ldr nxompkn+ tgn
@dvnrcmnct Obbductoifkfty Dllfbn‖s Rtoceores ldr Fctnrcok Bdctrdk fc tgn Lnenrok @dvnrcmnct
enlfcns bdctrdk obtfvftfns os tgn pdkfbfns+ prdbneurns+ tnbgcfquns+ oce mnbgocfsms tgot gnkp
ncsurn oc o`ncby‖s dihnbtfvns orn mnt#2: Lurtgnr+ os spnbflfne fc tgn Dllfbn dl Moco`nmnct oce
Iue`nt‖s Bfrbukor O-?92+ ft fs moco`nmnct‖s rnspdcsfifkfty td envnkdp oce mofctofc nllnbtfvn
fctnrcok bdctrdks#2? Ugus+ os o`ncbfns envnkdp oce nxnbutn strotn`fns ldr fmpknmnctfc` dr
rnnc`fcnnrfc` o`ncby prd`roms oce dpnrotfdcs+ tgny sgduke ensf`c moco`nmnct strubturns tgotgnkp ncsurn obbductoifkfty ldr rnsukts+ subg os opprdvne `ufeocbn oce prdbneurns spnbflfb td
pnrldrmfc` tor`ntne nxomfcotfdcs oce bdctfcudus mdcftdrfc` dl enloukt-rnkotne kn`ok snrvfbns#
LGLO‖s nxomfcotfdc `ufeocbn oce prdbneurns ‒ Rupnrvfsdry @ufen oce Rupnrvfsfdc Goceidda ‒
orn `ncnrok fc coturn oce cdt spnbflfb td dpnrotfdcok rfsa ornos+ subg os enloukt-rnkotne kn`ok
snrvfbns# Oktgdu`g tgn O`ncby‖s Rupnrvfsfdc Ynlnrncbn oce Zrdbneurns Mocuok fcbkuens mdrn
entofk bdcbnrcfc` rnvfnw prdbneurns rnkotne td dpnrotfdcok rfsa+ tgnsn prdbneurns ed cdt oeernss
spnbflfb tgfre-porty vncedr rfsas+ subg os rfsas ossdbfotne wftg enloukt-rnkotne kn`ok snrvfbns
pnrldrmne iy kow lfrms#
Oeeftfdcokky+ tgn O`ncby gos cdt lfcokfzne tgn mocuok ldr usn iy fts nxomfcnrs# Yotgnr+ tgn
mocuok gos innc fc ‛into tnstfc`”29 ldr dvnr twd ynors# LGLO gos stotne tgot tgn mocuok fs
outgdrfzne ldr usn iy nxomfcnrs+ oce eurfc` tgn ‛into tnstfc`” tgn nxomfcnrs govn innc usfc` tgn
mocuok td bdceubt nxomfcotfdcs+ fcbkuefc` tgn spnbfok rnvfnw dl tgn YOC# Cdcntgnknss+ LGLO
wduke incnlft lrdm bdmpkntfdc dl supnrvfsdry pkocs oce lfcokfzotfdc dl nxomfcotfdc `ufeocbn ldr
enloukt-rnkotne kn`ok snrvfbns tgot bdkknbtfvnky prdvfen moco`nmnct‖s efrnbtfdc `dvnrcfc` tgn
supnrvfsdry prdbnss#
2: @OD$OFME-::-9?#2#? ??$66&+ p# ??#
2? DMI Bfrbukor O-?92 Hucn 9?+ ?66>&+ § 9#
29 Into tnstfc` fs tgn kost sto`n dl prdeubt tnstfc` oce cdrmokky fcvdkvns usfc` tgn prdeubt fc rnok-wdrkebfrbumstocbns#
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 25/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
9>
2# LGLO Edns Cdt Govn o Ldrmok Zrdbnss ldr tgn Nctnrprfsns td Rgorn
Fcldrmotfdc Oidut Zrdiknm Kow Lfrms
LGLO edns cdt govn o ldrmok prdbnss td oeernss pnrldrmocbn prdiknms ossdbfotne wftg kow
lfrms tgot govn rnkotfdcsgfps ‒ nftgnr efrnbtky tgrdu`g bdctrobt dr tgrdu`g fts kdoc snrvfbnrs ‒ wftg idtg dl tgn Nctnrprfsns# Rpnbflfbokky+ LGLO edns cdt govn o pdkfby rnqufrfc` tgn Nctnrprfsns td
cdtfly tgn O`ncby wgnc tgny tnrmfcotn o tgfre-porty vncedr+ subg os o kow lfrm+ ldr pddr dr
fcopprdprfotn pnrldrmocbn# Ugn O`ncby oksd edns cdt govn o prdbnss td opprfsn oc Nctnrprfsn
wgnc ft knorcs tgot o portfbukor kow lfrm gos innc tnrmfcotne iy tgn dtgnr Nctnrprfsn# Oktgdu`g
tgn Nctnrprfsns oppnor td govn cdtflfne nobg dtgnr dl vncedr tnrmfcotfdcs fc tgn post+ subg
cdtflfbotfdcs oppnor td govn innc edcn dc oc oe gdb iosfs# LGLO oksd gos cdt envnkdpne oce
fmpknmnctne o pdkfby tgot rnqufrns Nctnrprfsns td nvokuotn tgn pnrldrmocbn dl o vncedr wgnc
tgny knorc tgot tgn dtgnr Nctnrprfsn tnrmfcotne tgn lfrm#
Loccfn Mon gos tnrmfcotne sfx kow lfrms lrdm fts YOC sfcbn 9::7+ iut LGLO edns cdt govn oldrmok pdkfby dr probtfbn td opprfsn nftgnr Nctnrprfsn dl tgn dtgnr Nctnrprfsn‖s tnrmfcotfdc
obtfdcs# Mdrndvnr+ Lrneefn Mob gos tnrmfcotne kow lfrms ldr pddr pnrldrmocbn+ oce Loccfn
Mon gos rntofcne tgn lfrms# Fcenne+ Lrneefn Mob tnrmfcotne dcn kow lfrm tgot prdbnssne dvnr
52. dl Loccfn Mon‖s kdoc ldrnbkdsurns fc Lkdrfeo# Lrneefn Mob vdkuctorfky cdtflfne Loccfn Mon
dl fts rnosdcs ldr tnrmfcotfc` tgn lfrm+ wgfbg fcbkuene ldrnbkdsurn prdbnssfc` oiusns+ iut Loccfn
Mon enbfene td rntofc tgn kow lfrm‖s snrvfbns# Loccfn Mon entnrmfcne tgot tgn bdst dl
trocslnrrfc` fts lfkns lrdm tgn lfrm td o rnpkobnmnct vncedr wduke in suistoctfok# Oeeftfdcokky+
Loccfn Mon bkofmne ft wduke wdra bkdsnky wftg tgn lfrm td mftf`otn fts enlfbfncbfns#22 Fc ocdtgnr
nxompkn+ Lrneefn Mob tnrmfcotne o kow lfrm fc Morykoce+25 oce+ o`ofc+ Loccfn Mon enbfene td
rntofc fts snrvfbns# Loccfn Mon ossnrtne tgot ft rnvfnwne tgn okkn`otfdcs oce efe cdt lfce tgn somn
typn dl enlfbfncbfns fc fts rnvfnw dl tgn lfrm#
LGLO cnnes td oeernss bdcbnrcs n#`#+ pddr oce fcopprdprfotn pnrldrmocbn& ossdbfotne wftg
tgfre-porty vncedrs+ subg os kow lfrms+ tgot ed iusfcnss wftg idtg Nctnrprfsns# Lofkurn td ed sd
knovns tgn Nctnrprfsns vukcnroikn td prdiknms dr oiusns fenctflfne iy tgn dtgnr Nctnrprfsn#
Lurtgnr+ LGLO‖s prdmpt obtfdc wfkk gnkp mftf`otn tgn rnputotfdcok rfsas ossdbfotne wftg tgn
okkn`otfdcs dl fmprdpnr ldrnbkdsurn probtfbns#
22
Loccfn Mon nstfmotns ft wfkk fcbur sf`cflfboct bdsts wgnc ft tnrmfcotns kow lfrms fc fts YOC ldr irnobg dl bdctrobt#Ugnsn bdsts fcbkuen bdsts fcburrne td fcvnstf`otn tgn obtfdcs dl tgn lfrm+ nxtnrcok tgfre-porty lnns+ fctnrcok dpnrotfc`bdsts+ oce lfkn trocslnr lnns f#n#+ lnns pofe td tgn rnpkobnmnct YOC lfrm td pgysfbokky obqufrn tgn ldrnbkdsurn lfkns&#Ldr nxompkn+ wgnc Loccfn Mon tnrmfcotne tgn Rtnrc Kow Lfrm+ ft nstfmotne ft wduke fcbur opprdxfmotnky %>#>mfkkfdc fc tdtok bdsts# Ugn bdsts fcbkuen %5#< mfkkfdc fc lfkn trocslnr lnns tgfs nstfmotn rnprnsncts %9:: pnr trocslnr ldr opprdxfmotnky 92+::: kdoc lfkns&# Loccfn Mon nstfmotne okk dtgnr ossdbfotne bdsts ot opprdxfmotnky %6::+:::#
25 O`ofc+ fts rnosdcs fcbkuene ldrnbkdsurn prdbnssfc` oiusns#
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
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Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
9<
BDCBK^RFDC
LGLO boc strnc`tgnc fts dvnrsf gt dl enloukt-rnkotne kn`ok snrvfbns# LGLO rnbd`cfzne tgn
fmpdrtocbn dl fts dvnrsf`gt dl tgn Nctnrprfsns‖ enloukt-rnkotne kn`ok snrvfbns oce `roeuokky
obbumukotne fcldrmotfdc dc tgn ottdrcny cntwdra prd`roms dl Loccfn Mon oce Lrneefn Mob#
Gdwnvnr+ LGLO efe cdt sbgneukn bdmprngncsfvn nxomfcotfdc bdvnro`n dl ldrnbkdsurn fssuns+
fcbkuefc` okkn`otfdcs dl oiusn iy spnbflfb kow lfrms tgot pnrldrmne enloukt-rnkotne kn`ok snrvfbns
ldr Loccfn Mon uctfk oltnr cnws obbducts dl oiusns surlobne fc Ou`ust 9:?:# LGLO gfstdrfbokky
bdcsfenrne tgn YOC td in oc orno dl bdmporotfvnky kdw rfsa+ iut snvnrok any fcefbotdrs bduke
govn kne tgn O`ncby td rnbd`cfzn fts fcbrnosfc` rfsa# Ldr nxompkn+ rfsfc` enloukt oce ldrnbkdsurn
rotn trnces rnlknbt fcbrnosne dpnrotfdcok rfsas+ oce tgn bdcsnqunctfok okkn`otfdcs dl ldrnbkdsurn
oiusns rnprnsnct rnputotfdcok rfsas ldr tgn Nctnrprfsns# Goe tgn O`ncby mdrn lukky nxpkdrne oce
bdcsfenrne tgnsn fcefbotdrs+ ft bduke govn nknvotne enloukt-rnkotne kn`ok snrvfbns os oc orno dl
bdcbnrc wdrtgy dl fcbrnosne supnrvfsdry ottnctfdc# Fcenne+ LGLO mf`gt govn innc oikn td toannorkfnr obtfdc td strnc`tgnc bdctrdks dvnr Loccfn Mon‖s kow lfrms fcvdkvne fc tgn ldrnbkdsurn
prdbnss# Nvnc fl tgnsn fcefbotdrs goe cdt prnbfpftotne o prd`rom dl nxomfcotfdcs dl Loccfn
Mon‖s enloukt-rnkotne kn`ok snrvfbns+ ot tgn vnry knost tgny sgduke govn prdmptne tgn O`ncby td
ncgocbn fts rfsa ossnssmnct oce mdcftdrfc` obtfvftfns#
Ugn O`ncby‖s spnbfok rnvfnw dl tgn YOC lromnwdra fs o pdsftfvn stnp oce tgn O`ncby sgduke
bdctfcun wftg ucenrtoafc` subg rnvfnws# LGLO-DF@ bdctnces+ gdwnvnr+ tgot tgn O`ncby sgduke
govn pofe bkdsnr ottnctfdc td tgn gf`gky eycomfb gdusfc` ldrnbkdsurn ncvfrdcmnct intwnnc 9::7
oce 9:?: oce+ fc tgn luturn+ sgduke inbdmn mdrn prdobtfvn fc fts dvnrsf`gt dl tgn YOC fc
portfbukor oce tgn ldrnbkdsurn prdbnss fc `ncnrok# Ugn O`ncby cnnes td oppky o prdobtfvnopprdobg `dfc` ldrwore td fenctfly oce ossnss cnw oce nmnr`fc` rfsas oce td envnkdp entofkne
`ufeocbn dc bdceubtfc` tor`ntne nxomfcotfdcs dl tgn Nctnrprfsns‖ dpnrotfdcok rfsas ossdbfotne
wftg tgnfr vncedrs# Ugfs `ufeocbn sgduke fcbdrpdrotn bdctfcudus supnrvfsfdc+ spnbfok rnvfnws+
oce tor`ntne nxomfcotfdcs oce oeernss brdssdvnr fssuns tgot ollnbt idtg dl tgn Nctnrprfsns oce
tgnfr rnkotfdcsgfps wftg tgfre-porty vncedrs#
LGLO wduke govn `rnotnr ossurocbn tgot ldrnbkdsurn prdbnssfc` oiusns wfkk in prnvnctne oce
entnbtne iy strnc`tgncfc` bdctrdks fc fts supnrvfsdry prdbnssns#
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
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Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
90
YNBDMMNCEOUFDCR
LGLO-DF@ rnbdmmnces tgot LGLO8
?# Ynvfnw tgn bfrbumstocbns surrducefc` LGLO cdt fenctflyfc` tgn ldrnbkdsurn oiusns ot oc
norkfnr sto`n oce envnkdp pdtnctfok ncgocbnmncts td fts bopobfty td fenctfly cnw oce
nmnr`fc` rfsas#
9# Envnkdp oce fmpknmnct bdmprngncsfvn nxomfcotfdc `ufeocbn oce prdbneurns td`ntgnr
wftg supnrvfsdry pkocs ldr enloukt-rnkotne kn`ok snrvfbns#
2# Envnkdp oce fmpknmnct pdkfbfns oce prdbneurns td oeernss pddr pnrldrmocbn iy enloukt-
rnkotne kn`ok snrvfbns vncedrs tgot govn bdctrobtuok rnkotfdcsgfps wftg idtg dl tgn
Nctnrprfsns#
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 28/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
97
DIHNBUF\N+ RBDZN OCE MNUGDEDKD@V
Ugn dihnbtfvn dl tgfs pnrldrmocbn oueft wos td ossnss tgn nxtnct dl LGLO‖s dvnrsf`gt dl Loccfn
Mon‖s enloukt-rnkotne snrvfbns pnrldrmne iy kow lfrms wftgfc tgn YOC# Rpnbflfbokky+ LGLO-
DF@ sdu`gt td rnvfnw LGLO‖s8 ?& wrfttnc pdkfbfns oce prdbneurns ldr fts dvnrsf`gt dl Loccfn
Mon‖s YOC1 '9& dvnrsf`gt dl Loccfn Mon‖s fctnrcok bdctrdks dvnr fts YOC1 oce '2& supnrvfsdry
obtfdcs toanc bdcbnrcfc` tgn YOC#2>
LGLO-DF@ pnrldrmne fts lfnkewdra ldr tgfs oueft lrdm Oprfk 9:?? tgrdu`g Huky 9:??# LGLO-
DF@ bdceubtne tgfs oueft ot LGLO‖s tgrnn dllfbns kdbotne fc Posgfc`tdc+ E#B#+ oce Loccfn
Mon‖s dllfbn fc Posgfc`tdc+ E#B# LGLO-DF@ fctnrvfnwne LGLO oce Loccfn Mon pnrsdccnk#
Ud obgfnvn fts dihnbtfvn+ LGLO-DF@ rnkfne dc bdmputnr-prdbnssne oce gore bdpy eoto lrdm
LGLO oce Loccfn Mon# Ugfs fcbkuene eoto bdctofcne fc tgn xPdras edbumnct rnpdsftdry oce
tgn O`ncby‖s MR Dutkdda nmofk obbduct# LGLO-DF@ ossnssne tgn vokfefty dl tgn bdmputnrfzneoce gore bdpy eoto oce lduce ft td in `ncnrokky obburotn+ iut bduke cdt bdcbkuen dc fts
bdmpkntncnss#
LGLO-DF@ ossnssne tgn fctnrcok bdctrdks rnkotne td fts oueft dihnbtfvns# Fctnrcok bdctrdks orn oc
fctn`rok bdmpdcnct dl oc dr`ocfzotfdc‖s moco`nmnct tgot prdvfens rnosdcoikn ossurocbn tgot tgn
ldkkdwfc` dihnbtfvns orn obgfnvne8
Nllnbtfvncnss oce nllfbfncby dl dpnrotfdcs1
Ynkfoifkfty dl lfcocbfok rnpdrtfc`1 oce
Bdmpkfocbn wftg oppkfboikn kows oce rn`ukotfdcs#
Fctnrcok bdctrdks rnkotn td moco`nmnct‖s pkocs+ mntgdes+ oce prdbneurns usne td mnnt fts
mfssfdc+ `doks+ oce dihnbtfvns+ oce fcbkuen tgn prdbnssns oce prdbneurns ldr pkoccfc`+
dr`ocfzfc`+ efrnbtfc`+ oce bdctrdkkfc` prd`rom dpnrotfdcs os wnkk os tgn systnms ldr mnosurfc`+
rnpdrtfc`+ oce mdcftdrfc` prd`rom pnrldrmocbn# Iosne dc tgn wdra bdmpkntne dc tgfs
pnrldrmocbn oueft+ LGLO-DF@ bdcsfenrs enlfbfncbfns rnkotne td LGLO‖s dvnrsf`gt dl Loccfn
Mon‖s enloukt-rnkotne kn`ok snrvfbns pnrldrmne iy kow lfrms wftgfc tgn YOC td in sf`cflfboct
wftgfc tgn bdctnxt dl tgn oueft dihnbtfvn#
LGLO-DF@ bdceubtne tgfs pnrldrmocbn oueft fc obbdreocbn wftg @ncnrokky Obbnptne
@dvnrcmnct Oueftfc` Rtoceores# Ugdsn stoceores rnqufrn tgot ouefts in pkoccne oce pnrldrmne
2> Ugn oueft wos cdt fctncene dr ensf`cne td ossnss tgn nllnbtfvncnss dl Loccfn Mon‖s dvnrsf`gt dl tgn YOC#
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 29/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
96
td ditofc sullfbfnct+ opprdprfotn nvfencbn td prdvfen o rnosdcoikn iosfs ldr LGLO-DF@‖s lfcefc`s
oce bdcbkusfdcs iosne dc tgn oueft dihnbtfvn# LGLO-DF@ inkfnvns tgot tgn nvfencbn ditofcne
prdvfens o rnosdcoikn iosfs ldr tgn lfcefc` oce bdcbkusfdcs fcbkuene gnrnfc+ iosne dc tgn oueft
dihnbtfvns#
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
http://slidepdf.com/reader/full/federal-housing-finance-agency-office-of-inspector-generals-oversight 30/35
Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
2:
OZZNCEFW O
LGLO‖ s Bdmmncts dc Lfcefc`s oce Ynbdmmnceotfdcs
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
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Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
2?
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
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Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
29
OZZNCEFW I
LGLO-DF@‖ s Ynspdcsn td LGLO‖ s Bdmmncts
Dc Rnptnminr 96+ 9:??+ LGLO prdvfene bdmmncts td o erolt dl tgfs rnpdrt o`rnnfc` wftg okk
tgrnn rnbdmmnceotfdcs oce fenctflyfc` LGLO obtfdcs td oeernss nobg rnbdmmnceotfdc# LGLO-
DF@ bdcsfenrs tgn obtfdcs sullfbfnct td rnsdkvn tgn rnbdmmnceotfdcs+ wgfbg wfkk rnmofc dpnc
uctfk LGLO-DF@ entnrmfcns tgot o`rnne updc bdrrnbtfvn obtfdcs orn bdmpkntne oce rnspdcsfvn td
tgn rnbdmmnceotfdcs# Rnn Oppncefx B dl tgfs rnpdrt ldr o summory dl moco`nmnct‖s bdmmncts
dc tgn rnbdmmnceotfdcs#
Pftg rn`ore td LGLO‖s rnspdcsn td Ynbdmmnceotfdc 2+ LGLO stotne tgot ft fs bdcbkuefc` fts
nxomfcotfdc obtfvfty oce wfkk ncsurn tgot opprdprfotn stnps orn toanc iy Rnptnminr 96+ 9:?9+ td
rnmnefotn Nctnrprfsn enlfbfncbfns fc tgn moco`nmnct dl rfsas ossdbfotne wftg enloukt-rnkotne
kn`ok snrvfbns vncedrs# Pgfkn tgfs obtfdc fs pdsftfvn+ LGLO sgduke oeernss pddr pnrldrmocbn iy
tgnsn bductnrportfns tgot govn rnkotfdcsgfps wftg idtg dl tgn Nctnrprfsns os port dl fts rnmnefok
nlldrts fc obbdreocbn wftg tgn o`rnne-td rnbdmmnceotfdc#
LGLO cdtne tgot ft edns cdt govn efrnbt supnrvfsdry outgdrfty dvnr prdvfenrs dl enloukt-rnkotne
kn`ok snrvfbns oce tgot tgn mottnrs ot fssun bdcbnrc LGLO‖s dvnrsf`gt dl Loccfn Mon oce gdw
Loccfn Mon moco`ns bductnrporty rfsa fc fts bdctrobtuok rnkotfdcsgfps wftg kn`ok snrvfbn
prdvfenrs# LGLO-DF@ o`rnns wftg tgnsn pdfcts oce lurtgnr cdtns tgot LGLO+ os bdcsnrvotdr ldr
Loccfn Mon+ gos tgn pdwnrs dl tgn moco`nmnct+ Idore dl Efrnbtdrs oce sgorngdkenrs dl tgn
Nctnrprfsn#
LGLO‖s rnspdcsn rnlnrrne td prfdr bdmmncts pr dvfene td LGLO-DF@ tgot wnrn bdcsfenrne fc
lfcokfzfc` tgfs rnpdrt#
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
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Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
22
OZZNCEFW B
R ummory dl Moco`nmnct‖s Bdmmncts dc tgn Ynbdmmnceotfdcs
Ugfs toikn prnsncts tgn moco`nmnct rnspdcsn td tgn rnbdmmnceotfdcs fc LGLO-DF@‖s rnpdrt oce
tgn stotus dl tgn rnbdmmnceotfdcs os dl tgn eotn dl rnpdrt fssuocbn#
Ynb# Cd# Bdrrnbtfvn Obtfdc8 Uoanc
dr Zkoccne
Nxpnbtne Bdmpkntfdc
Eotn
Mdcntory
Incnlfts
Ynsdkvne8o
Vns dr Cd
Dpnc dr
Bkdsne i
?# LGLO wfkk rnvfnw ftsnxfstfc` supnrvfsdry probtfbns+ fcbkuefc` dll-sftn mdcftdrfc`
obtfvftfns+ oce entnrmfcnwgntgnr tgnrn orn usnlukncgocbnmncts tdbdcsfenr oce fmpknmnctbdcbnrcfc` ossnssmnctsdl nmnr`fc` rfsas#
:6$96$9:?9 %: Vns Dpnc
9# LGLO wfkk rnvfnw ftssupnrvfsfdc rnlnrncbnoce prdbneurns mocuokoce oee entofkne
prdvfsfdcs td ft tgot pnrtofc td enloukt-rnkotnekn`ok snrvfbns# Lurtgnr+LGLO‖s supnrvfsdry
pkocs wfkk in rnvfsne tdrnlknbt tgn lfcok obtfdcstoanc td oeernsswnoacnssns fc tgn YOC#
:6$96$9:?9 %: Vns Dpnc
2# LGLO wfkk ncsurn tgotopprdprfotn stnps orntoanc td rnmnefotn
Nctnrprfsn enlfbfncbfnsfc tgn moco`nmnct dl rfsas ossdbfotne wftgenloukt-rnkotne kn`oksnrvfbns vncedrs#
:6$96$9:?9 %: Vns Dpnc
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
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Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnr ok • O^E-9:??-::5 • Rnptnminr 2:+ 9:??
25
o Ynsdkvne mnocs ‒ ?& Moco`nmnct bdcburs wftg tgn rnbdmmnceotfdc+ oce tgn pkoccne+ dc`dfc`+ oce bdmpkntnebdrrnbtfvn obtfdc fs bdcsfstnct wftg tgn rnbdmmnceotfdc1 9& Moco`nmnct edns cdt bdcbur wftg tgn rnbdmmnceotfdc+ iut oktnrcotfvn obtfdc mnnts tgn fctnct dl tgn rnbdmmnceotfdc1 dr 2& Moco`nmnct o`rnns td tgn LGLO-DF@mdcntory incnlfts+ o efllnrnct omduct+ dr cd %:& omduct# Mdcntory incnlfts orn bdcsfenrne rnsdkvne os kdc` osmoco`nmnct prdvfens oc omduct#
i Dcbn tgn LGLO-DF@ entnrmfcns tgot tgn o`rnne-updc bdrrnbtfvn obtfdcs govn innc bdmpkntne oce orn rnspdcsfvntd tgn rnbdmmnceotfdcs+ tgn rnbdmmnceotfdcs boc in bkdsne#
7/29/2019 FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECTOR GENERAL'S Oversight of Fannie Mae’s Default-Relate…
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Lnenrok Gdusfc` Lfcocbn O`ncby Dllfbn dl Fcspnbtdr @ncnrok • O^E 9:?? ::5 • Rnptnminr 2: 9:??
OEEFUFDCOK FCLDYMOUFDC OCE BDZFNR
Ldr oeeftfdcok bdpfns dl tgfs rnpdrt8
Bokk tgn Dllfbn dl Fcspnbtdr @ncnrok DF@& ot8 9:9-5:7-9>55
Lox ydur rnqunst td8 9:9-55>-9:0>
\fsft tgn DF@ wnisftn ot8 www#lglodf`#`dv
Ud rnpdrt okkn`ne lroue+ wostn+ oiusn+ mfsmoco`nmnct+ dr ocy dtgnr afce dl brfmfcok dr
cdcbrfmfcok mfsbdceubt rnkotfvn td LGLO‖s prd`roms dr dpnrotfdcs8
Bokk dur Gdtkfcn ot8 ?-7::-062-0095
Lox us tgn bdmpkofct efrnbtky td8 9:9-55>-9:0>
N-mofk us ot8 df`gdtkfcnJlglo#`dv
Prftn td us ot8 LGLO Dllfbn dl Fcspnbtdr @ncnrok
Ottc8 Dllfbn dl Fcvnstf`otfdc ‒ Gdtkfcn
?<9> Nyn Rtrnnt+ CPPosgfc`tdc+ EB 9:::<-5::?