Mortgage Finance Companies Under Federal Control

Posted by mxyzplk On April - 3 - 2009

I just found fresh news from Washington post about Mortgage Finance, they are planning to pay $210 million in retention bonuses. About 3,500 employees at Fannie were getting an average payment of $32,000 and 4,000 employees at Freddie were getting an average of $24,000.

The mortgage finance companies under federal control, are planning to pay $210 million in retention bonuses to 7,600 employees over 18 months, the firms’ regulator said today.

Fannie Mae and Freddie Mac’s compensation plans drew scrutiny several weeks ago after American International Group paid $160 million in bonuses to members of the unit that brought the insurance giant down. The House passed legislation to significantly tax the AIG bonuses, though the measure has been stalled in the Senate.

The Federal Housing Finance Agency said $51 million in payouts were given to employees in late 2008 and the remainder will come this and next year. The information was contained in a letter to Sen. Charles E. Grassley (R-Iowa.).

Fannie Mae and Freddie Mac’s compensation plans drew scrutiny several weeks ago after American International Group paid $160 million in bonuses to members of the unit that brought the insurance giant down. The House passed legislation to significantly tax the AIG bonuses, though the measure has been stalled in the Senate.