By Vicki Needham - 03/12/11 07:19 PM EST
The SEC’s investigation involves several people who were executives at Fannie Mae as the housing crisis worsened in 2007 and probes the firm's disclosures to investors as the financial crisis peaked in 2008, according to Bloomberg's report.
Fannie Mae and Freddie Mac were placed under government control in September 2008 as loans went bad. The two firms have stayed afloat with the help of more than $150 billion in government held.
Congress and the Obama administration are considering plans for winding down the firms, removing the government from the mortgage finance industry and spurring the banking sector to take up the slack.