Fannie Mae, the largest mortgage provider that is restating at least $10.8 billion of earnings, said it found additional accounting errors. Robert Blakely was hired from MCI Inc. as chief financial officer, filling an 11- month vacancy in the company’s top management.
The government-chartered company disclosed mistakes in accounting for tax credits and insurance, and didn’t say whether the restatement will increase. Washington-based Fannie Mae also said today that filings with the Securities and Exchange Commission will be delayed for a fifth quarter to correct financial reports dating back to 2001.
Shares of Fannie Mae have lost more than a third of their value amid the errors, delays in the restatement and a push in Congress to strengthen regulation of the company, Freddie Mac and the Federal Home Loan Bank system. Freddie Mac had to restate its earnings in 2003.