Money | subprime mortgages Fannie, Freddie Brushed Off Subprime Warnings Companies ignored risk experts for years By Kevin Spak Posted Dec 9, 2008 8:36 AM CST Copied In this July 13, 2008 file photo, the Freddie Mac's corporate offices are seen in McLean, Va. (AP Photo/Pablo Martinez Monsivais, File) Fannie Mae and Freddie Mac can’t say they weren’t warned. Internal documents obtained by the Washington Post show that both companies had internal factions who stressed the dangers of subprime mortgages several years ago. At Freddie Mac, the former chief enterprise risk officer wrote that the loans could hurt borrowers and the firm. “The potential for the perception and the reality of predatory lending with this product is great,” he wrote. Fannie meanwhile was urged to develop an “underground” program to buy the subprime mortgages, but was warned about the growing risks they posed. The House Committee on Oversight and Government Reform has the documents, and could bring them up in today’s hearing on the government-sponsored enterprises’ collapse. Read These Next CNN boss asks workers not to 'jump to conclusions' about deal. Bill Clinton: 'I Saw Nothing, and I Did Nothing Wrong' Trump laid a 'trap' for Democrats, and GOP aims to pounce. Back to the Future star is at the center of a shocking suit. Report an error