In an interview, Freddie Mac’s former chief risk officer, David A. Andrukonis, recalled telling Mr. Syron in mid-2004 that the company was buying bad loans that “would likely pose an enormous financial and reputational risk to the company and the country.”
I left Freddie at the beginning of 2004. At that time, I believed that it excelled at mortgage underwriting--it had very serious people who constructed careful, sophisticated models of default prediction.
Dave A. was among the most highly respected people in the company. Apparently, things changed after I left.