Nation's largest mortgage lender says it is revising financial report issued Oct. 16.
October 29, 2003: 3:29 PM EST
NEW YORK (Reuters) - Fannie Mae, the largest U.S. home mortgage financier, said on Wednesday that it corrected its third-quarter financial report to fix "computational errors."
In a securities filing, the company said the errors were primarily made in conjunction with implementation of an accounting standard.
"The revised release shows changes to certain balance sheet data; no income statement items were impacted," it said. The changes resulted in increases to unrealized gains on securities, it said.
The government agency that oversees the soundness of mortgage financer Fannie Mae said it would look into a $1.2 billion accounting error at the mortgage finance company.
"OFHEO is evaluating the circumstances surrounding the error, including the company's reliance on manual accounting systems," OFHEO Director Armando Falcon said in a statement.
Fannie Mae said net profit for its fiscal third quarter was $2.69 per share.
Shares of Fannie Mae (FNM: down $1.65 to $73.25, Research, Estimates) fell as much as 5 percent after the company said it was withdrawing its Oct. 16 press release announcing third-quarter results, without saying why.
Fannie Mae and Freddie Mac have been under close scrutiny by Congressional legislators and the Bush Administration, who have called for stronger oversight of the two housing giants.
Freddie Mac is under federal investigation for its accounting practices.
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