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Employees at mortgage giant Fannie Mae manipulated accounting so that executives could collect millions in bonuses as senior management deceived investors and stonewalled regulators at a company whose prestigious image was phony, a federal agency charged Tuesday.

Term Life Insurance Policy The blistering report by the Office of Federal Housing Enterprise Oversight, the product of an extensive three-year investigation, was issued as the government-sponsored company struggles to emerge from an $11 billion accounting scandal.

Fannie Mae sells its properties via real estate agents. You must present your offer to the agent who in turn presents it to Fannie Mae for consideration. Fannie Mae will review each offer and notify the agent of its decision. Fannie Mae will accept your offer, reject your offer, or make a counter offer. The counter offer demonstrates Fannie Mae's willingness to negotiate for a price that is mutually agreeable to both parties.

Life Insurance Earlier, a person familiar with the situation said that Fannie Mae was being fined between $300 million and $500 million for the alleged manipulation of accounting to facilitate executives' bonuses, in a settlement with the housing oversight agency.

Fannie Mae is the popular name used to identify the Federal National Mortgage Association (FNMA). Fannie Mae was established by the government to purchase FHA and other mortgages in order to bundle them for sale on the secondary market as " backed securities." Fannie Mae acquires properties from lenders that foreclose on such loans and offers them for sale to the public.

Insurance Life Premium ''The image of Fannie Mae as one of the lowest-risk and 'best in class' institutions was a facade,'' James B. Lockhart, the acting director of OFHEO, said in a statement as the report was released. ''Our examination found an environment where the ends justified the means. Senior management manipulated accounting, reaped maximum, undeserved bonuses, and prevented the rest of the world from knowing.''

www.foreclosure.com gives you access to information about these properties just like all other sources of REO. Fannie Mae advertises its properties to the general public via its Web site. The properties are also listed in the local Multiple Listing System (MLS), which is accessible by Realtors®. You can contact local real estate brokerages to find agents who market and sell Fannie Mae properties.

Health Insurance Policy The report also faulted Fannie Mae's board of directors for failing to exercise its oversight responsibilities and failing to discover ''a wide variety of unsafe and unsound practices'' at the largest buyer and guarantor of home mortgages in the country.

Classic was first developed in 1989, but its use increased sharply in 1995 when the two major mortgage underwriters, Fannie Mae and Freddie Mac, endorsed them for use by mortgage lenders. In 2001, Fair Isaac introduced its more advanced "Next Generation, " or "NextGen, " scoring model. NextGen is supposed to be more precise and more reliable, but it has not yet been widely adopted, in part because Fannie Mae and Freddie Mac have not endorsed it.²⁰

Health Insurance The OFHEO review, involving nearly 8 million pages of documents, details what the agency calls an arrogant and unethical corporate culture. From 1998 to mid-2004, the smooth growth in profits and precisely-hit earnings targets each quarter reported by Fannie Mae were ''illusions'' deliberately created by senior management using faulty accounting, the report says.

Although Fannie Mae may sometimes make a few repairs to properties to increase their value, the properties are sold in "as is" condition. This means that Fannie Mae does not guarantee any work that may have been done on the property. You will have to check the repairs to validate the quality of the work.

Insurance Life Premium Return The accounting manipulation tied to executives' bonuses occurred from 1998 to 2004, according to the report, a much longer period than was previously known.

Whole Life Insurance Policy Regulators had earlier said that Fannie Mae in 1998 improperly put off accounting for $200 million in expenses to future periods so executives could collect $27 million in bonuses.

Auto Cheap Insurance ''By deliberately and intentionally manipulating accounting to hit earnings targets, senior management maximized the bonuses and other executive compensation they received, at the expense of shareholders,'' the report says. The manipulation ''made a significant contribution'' to the compensation of former chairman and chief executive Franklin Raines, which totaled more than $90 million from 1998 to 2003, it says, including some $52 million directly tied to the company hitting earnings targets.

Insurance Life Premium Whole Fannie Mae employees falsified signatures on accounting transactions that helped the company meet the 1998 earnings targets, according to congressional testimony by the former director of OFHEO. The agency first discovered in 2004 the accounting-rule violations and alleged earnings manipulation by Fannie Mae to meet Wall Street targets -- disclosures that stunned the financial markets.

Cheap Home Insurance Policy In December 2004, the SEC ordered Fannie Mae to restate its earnings back to 2001 -- a correction expected to reach an estimated $11 billion. The Justice Department has been pursuing a criminal investigation.

Home Insurance Raines and former chief financial officer Timothy Howard were swept out of office by Fannie Mae's board in December 2004.

Care Insurance Long Premium OFHEO levied a record $125 million fine in 2003 against Freddie Mac, Fannie Mae's smaller rival in the multitrillion-dollar home mortgage market, for misstating earnings -- mostly underreporting them -- by $5 billion for 2000-2002.

Home Owner Insurance Policy On Friday, Fannie Mae said it was replacing the chairman of its board's audit committee, a key position as the second-largest U.S. financial institution reworks its accounting and struggles to emerge from the scandal. The company said the board had named accounting professor Dennis Beresford to replace audit committee chairman Thomas Gerrity.

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