Fannie Mae paid BofA premium to transfer soured loans-regulator

* Watchdog urges more scrutiny of Fannie Mae payments

* Members of Congress asked watchdog to review loan deal

* Inspector general has concerns about controls on program

Sept 18 (Reuters) – Fannie Mae agreed to pay Bank of America Corp about 20 percent more than it was contractually obligated to last year in order to transfer the servicing of troubled loans to another firm, a report by a watchdog found.

In a report to be issued on Tuesday, the inspector general for the Federal Housing Finance Agency urges the regulator to ensure Fannie Mae applies more scrutiny to the pricing of such transactions and possibly revise its contracts with mortgage servicers.

“FHFA should ensure that Fannie Mae does not have to pay a premium to transfer inadequately performing portfolios,” the report says, referring to the regulator of Fannie Mae and sibling Freddie Mac.

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