fannie mae and freddie mac

The Securities and Exchange Commission has charged six former top executives at Fannie Mae and Freddie Mac with civil fraud, saying they misled the government and taxpayers about risky subprime mortgages the mortgage giants held during the housing bust.

The Securities and Exchange Commission on Friday brought civil fraud charges against six former top executives at Fannie Mae and Freddie Mac, saying they misled investors about risky subprime loans the mortgage giants held when the housing bubble burst.

A proposed agreement with the S.E.C. would end an investigation over whether Fannie Mae and Freddie Mac adequately disclosed their exposure to risky subprime loans.

The federal agency that oversees Fannie Mae and Freddie Mac is expected to sue Bank of America, Goldman Sachs and others, accusing them of failures in vetting mortgages during the housing bubble.

Fannie Mae and Freddie Mac executives may face S.E.C. civil actions, but no criminal charges have been made.

If Fannie Mae and Freddie Mac shut down, interest rates would rise for most borrowers, but urban and rural residents could see sharper increases than customers in the suburbs.

Since the government took over Fannie Mae and Freddie Mac, taxpayers have spent more than $160 million defending their former top executives in fraud lawsuits.

Oct. 18 -- Brian Gardner, senior vice president for Washington research at Keefe Bruyette & Woods Inc., talks about implications of a Republican-controlled Congress and the prospects for overhauling Fannie Mae and Freddie Mac.

Fannie Mae and Freddie Mac may not accept home loans if consumers take advantage of energy-efficiency programs, raising questions about the programs’ future.

The Federal Housing Finance Agency has directed Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE), operating in conservatorship, to delist their common and preferred stock from the New York Stock Exchange and any other national securities exchange.