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NEW YORK (AP) - Shares of Fannie Mae tumbled Monday to their lowest intraday level in more than 10 years on a report that the mortgage financing company's chief regulator is looking into possible improper accounting of trusts it uses to sell mortgage-backed debt.
Shares of Fannie Mae, a government-sponsored entity that buys mortgages from banks and then repackages and sells them as bonds called mortgage-backed securities, fell $2.68, or 5 percent, to $50.56 in midday trading, and was one of the New York Stock Exchange's biggest percentage losers and most active issues. The stock dropped to a new 52-week low of $49.75 earlier in the day, down about 30 percent since early January.
On Monday, the Wall Street Journal reported that Armando Falcon Jr., director of the Office of Federal Housing Enterprise Oversight, or Ofheo, is looking into Fannie Mae's accounting methods for trusts set up to issue mortgage-backed securities.
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