Fannie Mae announced this morning that it has entered into an agreement with the Office of Federal Housing Enterprise Oversight (OFHEO) regarding its internal controls, accounting practices and capital adequacy, the GSE announced. As part of the agreement, Fannie Mae will achieve and maintain a capital surplus target of 30 percent within the next 270 days and protect its capital surplus of 18 percent as of Aug. 31. To view the agreement,
"Management appreciates the Board's appropriate leadership role in this process and the hard work it has done over the past several days," said Franklin Raines, Chairman and CEO of Fannie Mae. "We are in full support of today's agreement. Working with the Board and the company's regulators, we will begin to take steps immediately to comply with and implement the terms of the agreement."
