Both Fannie Mae and Freddie Mac remain "classified as significant supervisory concerns" because of "poor financial performance," the Office of Federal Housing Enterprise Oversight said in its 2008 Report to Congress. Contributing to that poor performance, according to OFHEO, were the weakening of their underwriting standards and the contractual impediments to guarantee fee increases as market conditions worsened. "Both companies -- especially Freddie Mac -- still have weaknesses to address," according to OFHEO.
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