WASHINGTON – Fannie Mae’s former finance chief and controller share primary responsibility for the accounting failures at the mortgage company struggling to emerge from an $11 billion scandal, a company-ordered report said yesterday.

It detailed a breakdown in financial controls and found an arrogant corporate culture at the government-sponsored company that is the biggest American financier of home mortgage loans.

No major new accounting problems were cited in the report that followed an 17-month investigation by a team led by former Senator Rudman, a Republican of New Hampshire.

But there are many details. For example, Fannie Mae in 1998 was said to have improperly put off accounting for $200 million in expenses to future periods so executives could collect $27 million in bonuses. Mr. Rudman’s inquiry affirmed this.

Documents cited in the report show that top-level management was focused on the $200 million deferral and meeting earnings targets that would trigger the payment of full bonuses.

Fannie Mae employees falsified signatures on accounting transactions that helped the company meet the 1998 earnings targets, according to the former director of the Office of Federal Housing Enterprise Oversight. The agency first discovered the accounting rule violations and earnings manipulation by Fannie Mae.

Mr. Rudman’s report said Fannie Mae’s former chairman and chief executive, Franklin Raines, contributed to a culture of arrogance at the Washington based company.

In December 2004, the Securities and Exchange Commission ordered Fannie Mae to restate its earnings back to 2001; this correction is expected to reach an estimated $11 billion. The housing office’s review has not ended and the Justice Department is pursuing a criminal investigation.

Mr. Rudman’s report said Fannie Mae executives, especially former chief financial officer Timothy Howard, gave the company’s board incomplete and sometimes misleading information regarding accounting and finances.

Messrs. Howard and Raines were ousted by the board in December 2004.

The report said Mr. Howard and former controller Leanne Spencer, who resigned last year, “were primarily responsible” for the flawed accounting practices in their overzealous drive to have the company show smooth earnings growth and meet Wall Street analysts’ expectations.

As for Mr. Raines, the investigation did not find that he knew that Fannie Mae’s accounting practices violated rules.

“We did find, however, that Raines contributed to a culture that improperly stressed stable earnings growth and that … he was ultimately responsible for the failures that occurred on his watch,” the report said.

The Bush administration said the report bolstered its view that Congress should reduce the huge mortgage portfolios of Fannie Mae and a smaller rival, Freddie Mac.

The investigation “lays bare the earnings-at-any-cost culture that had developed over many years at Fannie Mae and the substantial abuses that resulted,” Treasury Undersecretary Randy Quarles said in a statement.

Fannie Mae shares rose $1.23 to close at $57.14 in trading on the New York Stock Exchange. The jump reflecting investors’ relief that the report found no major new problems and noted a “dramatic” improvement in Fannie Mae’s corporate culture and internal organization under the current management.

Mr. Raines’ lawyer, Robert Barnett, took issue with the report’s characterization of his client’s role in the corporate culture, saying his client “sought to create a leadership culture that focused on openness and good governance.”

Steven Salky, a lawyer representing Mr. Howard, said, “We reject the report’s mischaracterization of Mr. Howard’s motives and conduct.”

It was not immediately known who was representing Ms. Spencer.

According to the investigators, she was “the only exception to the generally good cooperation we received from management and employees.”

Daniel Mudd, Fannie Mae’s chief executive, said the report was “strong but good medicine.”

“Fannie Mae is a different company than a year ago,” Mr. Mudd said in a statement. “We have been humbled, even embarrassed. But we have begun to make significant changes.”