The Federal Housing Finance Agency should direct Fannie Mae to strengthen its control over the GSEs short sales, and review Fannies Streamlined Documentation Program to determine whether it should be available to borrowers seeking approval to short sell non-owner-occupied properties, according to the agencys official watchdog. The audit released this week by the FHFAs Office of Inspector General was based on a review of 41 short-sale transactions involving multiple Fannie servicers.