Tag Archives: OIG

Hiring of the current CAE, John Forlines, was flawed for multiple reasons. One, he had not been identified for the CAE role in the senior management’s Succession Plan. The Succession Plan found that there was no internal candidate who was “ready now” for the CAE position and that a permanent successor would require an “external” candidate. Fannie Mae decided to compile a list of internal candidate six months after the Succession Plan was released.

Witnesses offered testimony to the subcommittee that senior HUD employees violated federal employment law practices as well as HUD policies by hiring Debra Gross, a former registered lobbyist, for a position with HUD's Office of Public and Indian Housing.

A report filed last week by the Office of Inspector General (OIG) of the Federal Housing Finance Agency (FHFA) states that Freddie Mac and Ginnie Mae ignored "red flags" with regards to a mortgage fraud scheme perpetrated by lenders Taylor, Bean & Whitaker and Colonial Bank. In addition to the losses absorbed by Freddie Mac (almost $2 billion) and Ginnie Mae (almost $1 billion), private banks that conducted business with Taylor Bean lost billions.

A new report from the inspector general for the Federal Housing Finance Agency (FHFA) urges the agency to "assess the merits of litigation" in dealing with servicers and providers accused of abusing lender-placed insurance practices. In 2012, lender-placed insurance issues cost Fannie Mae and Freddie Mac a combined $360 million, the report says.

HERA, the Housing and Economic Recovery Act of 2008, required Federal Home Loan Bank director expenses to be reported to Congress in its annual report. However, an investigation by the inspector general for the Federal Housing Finance Agency found that director expense reports contained "inconsistencies and limitations that diminish their usefulness."