Fannie Mae Discovers New Accounting Errors

The Wall Street Journal reports:

Fannie Mae disclosed two more accounting errors and said its review of accounting policies and procedures is "substantially complete."

The government-sponsored provider of funding for home mortgage loans said in a filing with the Securities and Exchange Commission that it couldn't yet quantify the financial effect of these violations of accounting rules. But, the Washington, D.C., company said, "based on our current view of the accounting errors we have identified to date, we believe we continue to meet our regulatory capital requirements."

Fannie previously acknowledged more than a dozen accounting problems. Fannie's regulator, the Office of Federal Housing Enterprise Oversight, or Ofheo, first identified some of these problems in 2004.

Many months ago,I predicted we'd hear more accounting problems from Fannie.We expect even more accounting stories from Fannie.When are Fannie's books going to be honest?