Fannie, Freddie Ask FASB to Clarify Control, Risk/Reward Concepts in SPE Consolidation
September 13, 2002
Fannie Mae and Freddie Mac have asked the Financial Accounting Standards Board to clarify and consider revising a proposal to consolidate special purpose entities, or SPEs, to ensure that risk-dispersing securitizations are not subject to consolidation. In comment letters to FASB, the two secondary mortgage market giants expressed concern that, despite the board’s favorable view of SPEs that effectively disperse risk, the proposal