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WASHINGTON, DC-Fannie Mae says it's been advised by the US Attorney's Office for the District of Columbia that it is discontinuing its investigation into its accounting policies and practices and does not plan to file charges. Fannie Mae was initially notified in October 2004 of the US Attorney's investigation of the company.

With this step it appears as though the fallout from Fannie Mae's accounting irregularities are coming to an end--although there are some members of Congress calling for new laws to further reform the GSAs. Fannie Mae has reached settlements with the Securities and Exchange Commission and the Office of Federal Housing Enterprise Oversight, which included a $400-million fine.

Also, in its latest 12b-25 filing, the company stated that it would complete its ongoing restatement by the end of 2006. Fannie Mae has not filed an earnings statement since late 2004, when it began re-auditing its financials. As it did, it became apparent that Fannie Mae's accounting was not consistent with generally accepted accounting principals.