Failure to Communicate Causes GSEs to Lose Billions
Office of Inspector General's report finds that Fannie Mae voided a contract to buy loans with lender Taylor Bean in 2000. But Freddie Mac and Ginnie Mae began buying loans in 2002, and when the lender's fraud scheme was uncovered, it was well on its way to bankruptcy, causing the two other GSEs to lose billions. Better communication between the government agencies is recommended. [8/28/14]