Fannie Mae-No Politics (FNMA)

[whipstick]

Auditors have to sign off on loss reserves.

So they don't have nothing to do with them.

They have to say that the methodology the mgmt used was sound.

However, you'd think a firm like PWC would know that the gov't was being overly harsh in their loss reserve projections.. so they either did a bad job or were helping them be opportunistically overly pessimistic.

HERA doesn't get to change how that works. It's an accounting rule.