Fannie Mae Investigation Finds `Nothing Alarming'

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Fannie Mae Investigation Finds `Nothing Alarming'

Jan. 5 (Bloomberg) -- Fannie Mae investigators haven't found anything new about the mortgage finance company's $10.8 billion in accounting errors that goes significantly beyond those already revealed, said Warren Rudman, who is heading the internal probe that began in September 2004.

``There is nothing new and alarming that we have come across,'' Rudman said in an interview in Washington. He said he may postpone the release of a probe report by a few weeks until early February to review recently received company documents.

Signs investigators have found no more mistakes may help Chief Executive Officer Daniel Mudd restore investor confidence following the biggest annual drop in Fannie Mae's share price since 1984. The regulator for Washington-based Fannie Mae said in September 2004 that the largest source of money for U.S. home loans used improper ``cookie jar'' reserves and deferred expenses to smooth its earnings and meet executive bonus targets.

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