Gov't tries to recoup some Fannie, Freddie losses

July 12, 2010 7:00:38 AM PDT
A federal regulator is taking steps that could lead to the recovery of some losses sustained by mortgage giants Fannie Mae and Freddie Mac.

The Federal Housing Finance Agency may try to get back money that Fannie and Freddie have lost on mortgage securities packaged and sold by Wall Street firms. The two government-controlled companies bought those securities as investments.

The regulatory agency says it has issued 64 subpoenas seeking loan files and other documents to determine whether the sellers of those securities made any false statements or omissions.

Any money recovered by the government would offset taxpayer losses. Rescuing the two mortgage finance companies has cost taxpayers $145 billion so far.