More errors have been unearthed by the seemingly never-ending review of home mortgage lender Fannie Mae's accounting.
Fannie Mae also said that it will miss a regulatory deadline for filing its financial report for the first quarter, and that is doesn't expect the government-ordered accounting review to be finished before the second half of 2006.
Fannie Mae said that the newly disclosed accounting errors involve certain transactions in its business of buying home mortgages from banks and other lenders and bundling them into securities, and the guaranty fees it charges the banks and other lenders.
There was no dollar estimate of how the mistakes could affect the expected restatement of earnings from January 2001 through the second quarter of 2004, which is expected to be in the $11 billion range.
The latest errors follow the mid-March disclosure of errors related to investment securities, loans and mortgage-backed securities trusts, which had followed the February issuance of an exhaustive independent report that found no new accounting errors. The company said that it expects an upcoming internal report to show that its financial controls remained insufficient as recently as the end of last year.
