WASHINGTON — A government watchdog said Fannie Mae and Freddie Mac improperly foreclosed on homeowners and cost the government billions of dollars by not holding major banks to strict underwriting requirements.
The report released Tuesday also said the Federal Housing Finance Agency gave “undue deference” to Fannie and Freddie officials and didn’t scrutinize more than $35 million in bonuses and compensation to Fannie and Freddie executives.
The FHFA’s inspector general had previously released each of the findings on an individual basis. But the semiannual report to Congress sketched a portrait of abuse at the two mortgage giants that the government failed to stop.
Fannie, Freddie and the FHFA didn’t respond to the report. But they have responded to similar allegations in previous reports.
Fannie and Freddie own or guarantee about half of U.S. mortgages, or nearly 31 million loans.
