Federal regulators soon found similar problems at Fannie Mae, including a $1.2 billion accounting error. This spring, officials of the Office of Federal Housing Enterprise Oversight found that Fannie Mae, like Freddie Mac, had violated standard accounting procedures and manipulated earnings. A scathing report documented how the company booked income in late reporting periods to burnish its books and allow executives to collect millions in incentive bonuses. The upshot is that Fannie Mae will likely be forced to wipe out $9 billion in profits it reported over the past four years.