CORRECTED - US regulators to settle with ex-Fannie execs--WSJ

(Corrects figure in fifth paragraph to $3.8 million, not billion)

NEW YORK, April 17 (Reuters) - U.S. federal regulators could announce a legal settlement as soon as Friday with three former Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) executives over their alleged roles in a 2004 multibillion-dollar accounting scandal, the Wall Street Journal reported on its Web site on Thursday.

Citing people familiar with the matter, the Journal said Franklin Raines, the former chief executive; Timothy Howard, the former chief financial officer; and Leanne Spencer, who was the mortgage company's controller, had reached the settlement.

The terms of the settlement could not be learned, according to the newspaper.

In 2006 Fannie's regulator, the Office of Federal Housing Enterprise Oversight, or OFHEO, filed civil suits against the three former executives seeking millions of dollars in back pay and bonuses from their time at the company during the accounting problems.

In July, attorneys for Raines argued that OFHEO was standing in the way of more than $3.8 million in unpaid bonuses for the former CEO, who resigned in 2004. Howard's lawyers argued he was entitled to an unpaid bonus worth $500,000

A spokeswoman from OFHEO declined to comment on whether a settlement had been reached. Attorneys for Raines, Howard and Spencer did not immediately return calls seeking comment. (Reporting by Emily Chasan; Editing by Gary Hill and Carol Bishopric)