Last year, Fannie and Freddie were quietly authorized by their regulator to reevaluate their CEOs' compensation packages. In a move that came as a surprise to no one, they proposed $3.4 million raises for each CEO. I quickly authored legislation that reversed the raises, and capped their pay. Multimillion dollar CEO salaries at taxpayer backed organizations are totally unacceptable.
And now it has been revealed that the projected cost to build-out Fannie Mae’s new headquarters space has risen 53.35% from $164.32/sf to $252.81/sf. Furthermore, the folks charged with oversight of the Fannie Mae headquarters project were unaware of the escalation in projected costs! The organization overseeing a huge chunk of the mortgage market can't get a simple construction project right.
This headquarters debacle is the perfect representation of Fannie and Freddie's model of "private gains and public losses." Eliminating them ensures a robust housing market and reduces the chances of another boom-bust-bailout cycle that hurt so many Californians in 2008.
If Fannie and Freddie were real human beings and the government controlled them to make credit available to banks in order to help the housing market and then the worlds economy slides down though no fault between the two. No fault meaning they did what the government required. Then the government through duress takes more control by instituting provisions that forecast perpetual slavery until inevitable self-destruction. Would anyone say that this scenario was fair or would it be comparable to the time in the nations history when slavery was legal?
Change in Directors or Principal Officers
Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. On May 18, 2016, Michael J. Heid, was elected to the Board of Directors of Fannie Mae (formally, the Federal National Mortgage Association). The Board has not yet determined the committees on which Mr. Heid will serve.
Mr. Heid, age 59, served as Executive Vice President (Home Lending) of Wells Fargo & Company (together with its affiliates, "Wells Fargo"), from 1997 to January 2016. He served in a number of positions at Wells Fargo Home Mortgage, the mortgage banking division of Wells Fargo, including as president from 2011 to September 2015, as co-president from 2004 to 2011, and earlier as chief financial officer and head of Loan Servicing. Mr. Heid was employed by Wells Fargo or its predecessors since 1988.
Mr. Heid will be paid compensation as a director as described in the Current Report on Form 8-K filed by Fannie Mae on December 24, 2008, which description is incorporated herein by reference. Fannie Mae is entering into an indemnification agreement with Mr. Heid, the form of which was filed as Exhibit 10.15 to Fannie Mae's Annual Report on Form 10-K for the year ended December 31, 2008, filed with the Securities and Exchange Commission on February 26, 2009. While no part of Mr. Heid's compensation from Wells Fargo in 2015 was tied specifically to Wells Fargo's business with Fannie Mae, the business activities between the companies may have had an indirect impact on his compensation. Mr. Heid holds stock in Wells Fargo & Company. He has restricted stock units and performance share awards that will vest in 2017 and 2018. The number of shares of Wells Fargo common stock he will receive in respect of the performance share awards will be determined based on Wells Fargo's corporate performance over a three-year period.
We regularly enter into a variety of transact
Has this story already been posted and read?
The government definitely breached an agreement by taking 100% of the dividends after knowing those would be far in excess of the 10% dividend. They still haven't quit, it's like other owners of the GSE's don't exist. Owners are entitled to their fair share and just because one owner is bigger and bad doesn't give them the right to steal.
What do y'all think?
The WBHL provides low and moderate income borrowers a straight, broad highway to building wealth based on a 15-year, fully amortizing, fixed-rate loan. While the WBHL requires no down payment and has a broad credit box, the monthly payment is much less than a traditional 15-year loan and will result in much lower foreclosure risk than FHA and other 30-year loans made to similarly situated borrowers.
“This will be a game changer for generating wealth by making a 15 year mortgage affordable for working people” says Bruce Marks – NACA CEO. “The majority of the mortgage payment will now go to the equity in the home effectively providing debt free homeownership”. Continues Bruce Marks. “This is in effect a freedom mortgage created through an unprecedented partnership between NACA, one of the country’s largest progressive organization, the American Enterprise Institute, one of the country’s premier conservative organizations, and Bank of America, one of country’s largest financial institutions”.
"Title 8 Housing" are you stupid or what, I heard of Section 8 and what does that have to do with Fannie Mae?
Wiping my #$%$ with American flag, so I didn't pay you no attention
Its true white folks invented racism and that is their worthless quality
He paid off debt my #$%$, so that's worth more than freeing the slaves that made this country great at their expense
Big yank has a racist rant, what else could be expected from a worthless pos
Since 2008, the government has been closing out several cases against banks while none against government seem to be progressing at a pace anywhere close to what the government has been able to accomplish. Something mighty screwy has been going on with these courts.
If someone earns an insult it does not matter what they are. People insult people because they don't like them or what they do, personal preference. In one ear out the other is the way to handle insults, even when the truth is the insult