The hard-hitting report on Fannie Mae by the Office of Federal Housing Enterprise Oversight not only slammed the GSE’s management and board, but also found plenty of fault with the GSE’s external auditor, KPMG, asserting the firm violated OFHEO’s external audit requirements in substantial and material ways. “KPMG did not have an adequate process for reviewing Fannie Mae’s accounting policies for compliance with GAAP,” the agency said. …