FHFA Issues Subpoenas Related To Fannie, Freddie

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WASHINGTON – The Federal Housing Finance Authority, as Conservator of Fannie Mae and Freddie Mac, has issued 64 subpoenas to various entities, seeking documents related to private-label mortgage-backed securities (PLS), in which Fannie and Freddie invested.

The documents will enable the FHFA to determine whether PLS issuers and others are liable to Fannie and Freddie for certain losses they have suffered on PLS.  If so, FHFA expects to recoup funds, which would be used to offset payments made to Fannie and Freddie by the U.S. Treasury.

Fannie and Freddie were both placed into conservatorship on Sept. 6, 2008.

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