Fannie Mae’s search for a new chief executive is down to two candidates, one inside the company and the other the CEO of Radian Group (RDN), according to The Wall Street Journal.

The government-sponsored enterprise prefers Timothy Mayopoulos, Fannie’s general counsel, but a promotion would mean a big pay cut. He’s set to make $2.66 million in salary and deferred pay this year, but the Federal Housing Finance Agency set a $500,000 salary target for the incoming CEOs of Fannie and Freddie Mac

Donald Layton, who took the helm at Freddie on Monday, will make $600,000 this year.

Nick Timiraos and Joann S. Lublin write that if Mayopoulos doesn’t take the job, they could next ask S.A. Ibrahim, Radian’s CEO.

Read more at The Wall Street Journal.