Issa probing Fannie’s big mortgage buy

{mosads}The Wall Street Journal reported on the deal in August and noted that the bank sold the $73 billion in loans at a discount, anticipating further losses on it going forward. The loans included in the deal had a 13 percent delinquency rate.

Given that Fannie and fellow mortgage giant Freddie Mac have been under government conservatorship since 2008, Issa worried that such a deal “unwisely spent taxpayer funds.”

“Congress and the American people deserve a full explanation for what appears to be yet another bailout paid for by taxpayers benefitting businesses that made bad business decisions,” he said.

DeMarco was given until Sept. 29 to detail the rationale for the deal, as well as any plans Fannie might have for future transactions.

Despite the deal, Bank of America and the FHFA do not have a universally positive relationship. The bank was one of over a dozen the FHFA sued earlier this month as it sought to recoup losses on risky mortgages sold to Fannie and Freddie before the financial crisis.