Fannie Mae misclassified $6.7 bln of loans in 2004

Reuters has more news on Fannie Mae:

the largest U.S. home funding company, misclassified about $6.67 billion in single-family loans as multifamily loans last year, the company said in its monthly summary report for October.

Fannie Mae also said it misclassified about $3.68 billion of its single family loans as multi-family loans in the first two months of 2002. In both periods, the company's total mortgage purchases were unchanged.

This kind of fraud is rather outrageous.Enron couldn't get away with this, why should Fannie? Oh,we forgot the United States federal government holds Fannie to much lower ethical standards.