Reps. Baker, Kelly, Ney Question Fannie Mae on First Beneficial Loan Sale

December 2, 2004

Three House Financial Services Subcommittee Chairs have written to Fannie Mae Chairman and CEO Franklin D. Raines asking a series of questions regarding a sale of fraudulent loans to Ginnie Mae. According to news reports, the sale allegedly was accomplished with the knowledge of Fannie Mae officials.

Capital Markets, Insurance, and Government Sponsored Enterprises Subcommittee Chairman Richard H. Baker (LA), Oversight and Investigations Subcommittee Chairwoman Sue Kelly (NY), and Housing and Community Opportunity Subcommittee Chairman Robert W. Ney (OH) are concerned about taxpayer risk that may have been created when the fraudulent loans were sold to Ginnie Mae.

Answers are due back to the Financial Services Committee by January 14, 2005.