In the early and mid-2000s, the Bush administration called numerous times for investigation into the safety and soundness of the GSEs and their swelling portfolio of subprime mortgages. On September 10, 2003, the House Financial Services Committee held a hearing at the urging of the administration to assess safety and soundness issues and to review a recent report by the Office of Federal Housing Enterprise Oversight (OFHEO) that had uncovered accounting discrepancies within the two entities. The hearings never resulted in new legislation or formal investigation of Fannie Mae and Freddie Mac, as many of the committee members refused to accept the report and instead rebuked OFHEO for their attempt at regulation. Some believe this was an early warning to the systemic risk that the growing market in subprime mortgages posed to the U.S. financial system that went unheeded. COUNT 5
QSN1 Who uncovered accounting discrepancies in Fannie Mae and Freddie Mac? ANS1 Office of Federal Housing Enterprise Oversight (OFHEO) QSN2 Which administration called for investigation into the soundness of GSEs in the early and mid-2000s? ANS2 Bush administration QSN3 On what date did the House Financial Services Committee hold a hearing to assess safety and soundness issues regarding Fannie Mae and Freddie Mac? ANS3 September 10, 2003 QSN4 What was the result of the House Financial Services Committee on September 10, 2003 regarding Fannie Mae and Freddie Mac? ANS4 The hearings never resulted in new legislation or formal investigation QSN5 Who rebuked OFHEO in 2003 for their attempt at regulation of Fannie Mae and Freddie Mac? ANS5 House Financial Services Committee