Fannie Mae’s Quiet $4 Billion Adjustment

The debate over Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) usually starts with the idea that the two GSEs are now profitable and quickly moves on to whether or not re-privatizing them puts taxpayers at risk of another bailout. The debate over accounting (whether they are actually profitable or just cash flow positive) is usually skipped over, but now another problem is emerging with Fannie Mae and Freddie Mac’s accounting – it doesn’t seem that reliable. Non-material errors add up to be material: McKenna Last week, Dan…