Fannie, Freddie Said Near Settlement With SEC on Loan Disclosure
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Government-supported housing finance agencies Fannie Mae and Freddie Mac are within months of settling claims that they failed to inform investors of their exposure to subprime mortgages before the 2008 credit crisis, according to a person with knowledge of the discussions.
The housing companies will neither admit nor deny defrauding investors, nor will they pay any fines under the proposed settlement with the U.S. Securities and Exchange Commission, said the person, who spoke on condition of anonymity because the talks are private.