Home mortgage giant Fannie Mae disclosed Wednesday that serious accounting problems have prompted an inquiry by the SEC into the company's financial soundness.

On Monday, federal regulators submitted a report to the Office of Federal Housing Enterprise Oversight, explaining that violations at Fannie Mae were "serious and raise doubts concerning the validity of previously reported financial results, the adequacy of regulatory capital, the quality of management supervision, and the overall safety and soundness" of the institution. Read a statement from the presiding director of Fannie Mae's board.