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Fannie Mae employees leave as FHFA investigation ensues

October 31, 2011 02:06PM

Fannie Mae staffers have taken leave as the Federal Housing Finance Agency’s inspector investigates an agency transaction believed to involve the Related Companies. The Wall Street Journal reported that the FHFA Office of the Inspector General began a limited investigation into Fannie Mae last Thursday, and that the agency responded by putting employees on leave until the investigation closes.

The probe was set off by a deal Fannie struck with Related earlier this year, when it sold a stake in multiple foreclosed apartment buildings to Related, which also assumed management duties. The deal gave Related the option of taking similar stakes in future foreclosed properties. It was the first major sale of foreclosed properties by Fannie. [WSJ]