Fannie Mae, Freddie Mac Executives Received Large Pay Without Analysis, Reports Finds

The heads of bailed-out mortgage finance giants Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) were paid fat salaries without proper written procedures or analysis, according to a report published by the Inspector General of the Federal Housing Finance Agency (FHFA-OIG).

Also, the housing regulator Federal Housing Finance Agency (FHFA) has not considered the factors that might have possibly resulted in reduced executive compensation costs, the review report said.

The heads of Fannie Mae and Freddie Mac were paid a total of $17.1 million in 2009 and 2010 -- the two full years of government ownership.

The top six executives at the housing giants were paid $35.4 million over the two years, according to the report that was posted on the agency's website.

The Inspector General said FHFA has not developed written procedures to evaluate the recommended executive compensation levels each year.

"FHFA also does not provide sufficient transparency to the public of the Enterprises' executive compensation program," the Office of Inspector General said in the evaluation report.

The report recommended that FHFA should establish ongoing review and analysis process to determine the compensation levels for the top executives of mortgage finance giants.

The mortgage firms have taken more than $130 billion in direct taxpayer aid since 2008 and the U.S. government indicated in February that total cost could peak at $169 billion by late next year before beginning to shrink as they slowly repay taxpayers.

Fannie Mae and Freddie Mac could not immediately be reached for comment by Reuters outside regular U.S. business hours.

(Reporting by Sakthi Prasad in Bangalore; Editing by Muralikumar Anantharaman)

HOUSING MARKETAEROSPACE & DEFENSE

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[Abitrusty]

02:01 PM on 04/04/2011

Yea but they needed it. They all took pay cuts to work in the Obama administration!

[Gregg Pechmann]

12:44 PM on 04/04/2011

Franklin Raines , Head of Fannie Mae, made $90 million over 6 years during this mess.....funny, the outrage is silent....

[themodernleader]

06:03 AM on 04/04/2011

   They were paid well for accepting liars loans and other subpar mortgages.  They were paid will for corrupting  accepted accounting practices.  The next investigation must be the big bank CEOs  that failed and are now corrupting our administration and congress.

[littlebrowngirl]

11:59 PM on 04/03/2011

Met an IT guy from Fannie Mae years ago. The guy was driving a bentley. I knew something was wrong.

[altohone]

11:54 PM on 04/03/2011

Fraud participants don't come cheap.
Slammed in a report is their slap on the wrist. If anyone is expecting real accountability or pipedream clawbacks, I heard HuffPo is launching a fiction section soon.

[JoeJo]

07:03 PM on 04/03/2011

* * Meanwhile * * Their employees, the grunts that get the job done have been on fixed salaries for the past two years! These guys have a longstanding tradition of screwing the little guy, even when its one of their own. These two appointed windbags are paid on how well their company performs. Given the Fed has been buying all their securities they can't help maxing their bonus every year. They get rewarded with millions in bonuses for something already set in place. We should all have it this easy!

[golf1010]

05:25 AM on 04/03/2011

This is like paying a baseballnplayer 30 mil a year for hitting .121 2 hr 23 RBI . Sick world only the ppl making 30 k a year a responsible to do honest handwork

[Wendy Davis]

10:17 PM on 04/02/2011

The commercials on this site are making me want to scream and then flee. 
 
Heads up - 60 minutes this Sunday -
 
http://www.zerohedge.com/article/60-minutes-foreclosure-fraud-featured-sunday-60-minutes
 
 
You'd think the PRESIDENT would stand up and speak of the atrocities taking place in the financial industry - his not stating the oh-so-obvious makes me think he is COLLUDING with them and that makes me not want him to be a president because really, we are here because of the collapse of the US economy is based on the housing industry.
 
 

[slobberdawg49]

08:14 PM on 04/02/2011

Sooo...why weren't they paid minimum wage for the duration of federal ownership? Why were they (assuming jail time is out of the question) even allowed to keep their jobs? Again, avoiding jail time is enough to keep these leeches rolling if big fat politicians...er, I mean paychecks.

[ACMSinc]

01:36 PM on 04/02/2011

And the transfer of wealth continues......

[mike dougles]

07:11 AM on 04/02/2011

Fannie and Freddie are fine going forward.

[timmartin654]

06:47 AM on 04/02/2011

I first worked with "Mortgage Refinance 123" more than a year and recently I refinanced my loan, again with 123. Both times I scoured the field for other options, and I found no-one better than 123. The process was very professional and straight forward; all estimates were in writing.

[marinatha]

02:29 AM on 04/02/2011

It amazes me that these people making these pieces of change are NEVER examined for job PERFORMACE.And if they are it's by thier croinies.This is should be considered unlawful.But what we do in our daily lifes is under scrutiny.They think they are so clever.....

[ColoradoCool]

02:02 AM on 04/02/2011

In essence, these guy are nothing more than grifters who raided the coffers of the companies they worked for just before they ran them into the ground. If that's not a prosecutable offense, then something is horrendously wrong with our legal and financial systems.

[2garen]

08:34 AM on 04/02/2011

We need some grande jury investigations , now.

[ColoradoCool]

04:02 PM on 04/02/2011

Well YEAH! And some convictions with long jail terms. Fanned!

[Constant Diligence]

12:29 AM on 04/02/2011

So American Homeowners should wage a legal war on the Banks that should keep all the lawyers happy. The taxes on the DOMESTIC legal fees will fund at risk homeowners facing foreclosure, or patch up crumbling American infrastructure. Better yet any American land owner who owes money to a bank should have a portion of that debt forgiven by the new wealth created from our legal war machine FYI… I love and respect our men and women in uniform andpray for Godspeed in the execution of their duties, but as they are fighting for American interests, I’d like to know Americans actually still own America! The Banks have packaged and resold American real assets so many times they don’t even know the truth about who really owns America, Corporations, Banks, Governments Foreign & Domestic, or the people. Once America owns America again we can go ABROAD for vacation! The fact that we use wars to create wealth is obscene to anyone who believes in something greater, than self or country. The great designs of America are being funded through the destruction of the American Middle-class Homeowner.

We must all fight individually to compel a fair outcome for ourselves. Educate and arm yourself then please step into the ring! The Banks may have unlimited resources but Americans have an unlimited will to fight for justice! Use all the leverage you can… http://diligencegroupllc.net/

American Middle-class Homeowner

-AMH