Congress

OFHEO: GSEs Still a Concern 

In its 2007 Report to Congress, the Office of Federal Housing Enterprise Oversight said Tuesday that both GSEs “remain a significant supervisory concern,” alluding to the potential risks posed by the large mortgage holdings at both Fannie Mae and Freddie Mac. “While both Enterprises made progress in correcting their problems, especially in systems, controls and financial reporting, it has taken much more time and money to correct than the GSEs or OFHEO expected,â€? said OFHEO driector James Lockhart. “A key indicator of a successful remediation will be the timely filing of annual and quarterly financial statements by each company with a clean audit opinion based on a controls-based audit. I am pleased to report that both companies are working hard to achieve this goal, but they still have much to do.â€?