Which of the following factors occurred in the early 2000s and created concerns about the ability of Fannie Mae and Freddie Mac to manage their portfolios of assets?
A)Fannie Mae miscalculated the value of its mortgages that created a restatement of its stockholder equity.
B)Both agencies overcharged lenders for services they provided.
C)Fannie Mae operated for some time with a sharp increase in interest rate risk on its balance sheet.
D)All of the options.
E)Both agencies overcharged lenders for services they provided, and Fannie Mae operated for some time with a sharp increase in interest rate risk on its balance sheet.

Question

Quizplus · Accepted Answer

All of the options occurred in the early 2000s and created concerns about the ability of Fannie Mae and Freddie Mac to manage their portfolios of assets. Fannie Mae's miscalculation of the value of its mortgages led to a restatement of its stockholder equity, and both agencies overcharged lenders for services they provided. Additionally, Fannie Mae operated for some time with a sharp increase in interest rate risk on its balance sheet.

Which of the Following Factors Occurred in the Early 2000s