Freddie Mac said today it will follow a recommendation to cap its retained mortgage portfolio until the company begins releasing quarterly financial statements in accordance with generally accepted accounting principles some time next year.

As part of the continuing fallout over accounting scandals at Freddie Mac and Fannie Mae, both government-backed mortgage repurchasers have now capped their lending portfolios, as recommended by the Office of Federal Housing Enterprise Oversight.

In 2004, OFHEO accused both companies of improper accounting practices that led them to restate several years of earnings. Congress is debating legislation that would create more government oversight of the publicly traded lenders. Freddie Mac in April agreed to pay $410 million to settle lawsuits by shareholders over accounting practices that led the company to restate three years of earnings.

Freddie Mac today said it would cap its portfolio at 2 percent above its level at the end of June, or $710.3 billion, Reuters reports. Fannie Mae agreed to cap its portfolio in May at $727 billion, where it stood at the end of 2005.

***

Send tips or a Letter to the Editor to matt@inman.com or call (510) 658-9252, ext. 150.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
We are less than 1 week away from Inman Connect! Get your ticket for $99 before prices go up next week.GET YOUR TICKET×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription