Judge In SEC Probe: Ex-Executives Knew Fannie Mae's Disclosures On Subprime Mortgages Were ...

Aug 10 (Reuters) - Three former senior Fannie Mae executives lost their bid to dismiss a U.S. Securities and Exchange Commission civil fraud lawsuit accusing them of misleading investors about the company's exposure to risky mortgages.
The executives, including one-time Chief Executive Daniel Mudd, contended that Fannie Mae had explicitly and accurately disclosed its exposure to subprime and low-documentation "Alt-A" home loans before the government seized the mortgage-finance enterprise in September 2008.

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