Fannie Mae Delayed Acting on Loan-Paperwork Abuse, Watchdog Says

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Fannie Mae waited for two years before acting on a tip from one of its shareholders about abuses by lawyers handling the mortgage firm’s foreclosures, a government watchdog reported.

The inspector general of the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, released a report today on outside law firms hired by the government-sponsored firm to handle mortgage defaults.