Why Fannie Mae (FNMA) Stock, Freddie Mac (FMCC) Stock Are Higher Today

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.

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FNMA Chart

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FMCC Chart

FMCC data by YCharts

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