Fannie Mae reports they found errors in the reworking of the numbers which had errors in the first place.

Embattled mortgage giant Fannie Mae disclosed Monday that it had found additional errors in the reworking of its accounting ordered by federal regulators.

The government-sponsored company, which finances one of every five home loans in the United States, said it had made “substantial progress” toward completing its accounting review but expects to miss a regulatory deadline for filing its annual financial report for the second straight year. The deadline for the filing is Thursday.

Ironic. A government-sponsored company having problems meeting a government imposed deadline to report it’s annual financial report to government regulators.

Federal regulators in 2004 accused Fannie Mae of serious accounting problems and earnings manipulation to meet Wall Street targets, and the Securities and Exchange Commission ordered the company to restate earnings back to 2001 _ a correction expected to reach an estimated $11 billion. The Justice Department is pursuing a criminal investigation.

The company does not expect to complete the reworking until the second half of this year. Fannie Mae said in its SEC filing Monday that it has completed “the process of identifying accounting issues for review.”

I don’t know about you, but I don’t think I would use the word “reworking” when the subject is earnings manipulation. But, that’s just me.

Maybe they should try reporting the numbers without manipulating them. Just an idea.

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