Citizens Against Government Waste, a nonprofit group that aims to cut wasteful taxpayer spending, bashed Fannie Mae and Freddie Mac for paying top executives a combined $35 million in 2009 and 2010. CAGW criticized the firms’ pay packages after reading the results of a new report released by the Federal Housing Finance Agency’s Office of Inspector General. CAGW said the report shows the CEOs at Fannie and Freddie earned a combined salary of $17 million with options to take home $24 million. “The IG report points out that, in 2009 at Fannie Mae, one of the performance benchmarks used to determine salaries was whether Fannie Mae executives would be able to sell a certain level of mortgage-backed securities (MBS),” CAGW said in a release. “Yet, the Federal Reserve was already planning on purchasing large amounts of Fannie’s MBS as a part of the company’s bailout package, hardly something that should have counted as a performance measure,” the organization said in its public complaint. The future of the GSEs continues to be a topic of discussion in Washington. The Federal Housing Finance Agency Acting Director Edward DeMarco pushed back against broad-sweeping GSE reforms posed by Republican lawmakers last week, while also saying he’s receptive to tweaking some of their proposed reforms. Write to Kerri Panchuk.
About the Author
Kerri Ann Panchuk was the Online Editor of HousingWire.com, and regular contributor to HousingWire magazine. Kerri joined HousingWire as a Reporter in early 2011 and since earned a law degree from Southern Methodist University. She previously worked at the Dallas Business Journal.