The Federal Housing Finance Agency incorrectly piggybacked and failed to independently verify Fannie Mae’s and Freddie Mac’s mandated assurances or “covenants” that the GSEs were in compliance with the Treasury Department’s terms in exchange for taxpayer support during conservatorship, according to a recent report by the FHFA’s official watchdog. The FHFA’s Office of Inspector General noted a “gap” in the Finance Agency’s compliance with the terms of the preferred stock purchase agreement with the Treasury.“Until June 2012, FHFA did not provide Treasury with a certification that the enterprises’ filings and related documents were free of materially false or misleading statements,” said the OIG report, issued in August.