NEW YORK (TheStreet) -- Shares of Fannie Mae (FNMA) are up 4.26% to $3.92 as the regulator of Fannie and Freddie Mac (FMCC) will consider suing insurers who charged excessive fees for hazard coverage paid by the two government-owned mortgage companies, according to an auditor's report, Bloomberg reports.
Shares of Freddie Mac are up 2.17% to $3.76.
Fannie Mae and Freddie Mac could have overpaid about $158 million in 2012 alone for lender-placed insurance, according to the report released by the Federal Housing Finance Agency's Office of Inspector General.
The coverage is purchased by mortgage servicers and billed to borrowers who allow their policies to lapse, Bloomberg noted.Must Read: Warren Buffett's 25 Favorite Growth Stocks
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV