Google+
  • Ocwen3.15+0.05 +1.61%
  • Zillow39.92-0.36 -0.89%
  • Trulia47+0 +0%
  • NationStar17.70+0.38 +2.19%
  • CoreLogic45.65-0.36 -0.78%
  • RE/MAX61.55+0.85 +1.40%
  • Fannie Mae2.80+0.06 +2.19%
  • Freddie Mac2.645+0.045 +1.731%
  • Wells Fargo54.06+0.31 +0.58%
  • CitiMortgage71.76+0.30 +0.42%
  • Bank of America25.16+0.10 +0.40%
  • Fidelity National Financial47.39-0.91 -1.88%
  • First American48.84-0.42 -0.85%
  • Black Knight Financial Services43.45-0.55 -1.25%
  • AUDUSD=X0.7923-0.0009 -0.1072%
  • USDJPY=X111.8140-0.6020 -0.5355%
Home | Daily Dose | GSEs’ Expenses Are Way Up; Where Did the Money Go?
Print This Post Print This Post

GSEs’ Expenses Are Way Up; Where Did the Money Go?

GSE Reform, Fannie Mae, Freddie Mac News, Mortgage FinanceFannie Mae and Freddie Mac returned to profitability in 2012, four years after requiring a combined $187.5 billion taxpayer bailout. The year 2012 also marked the beginning of a four-year period in which the GSEs’ expenses increased by a combined $1.1 billion, and a white paper released by the Office of Inspector General of the Federal Housing Finance Agency (FHFA OIG), the Enterprises’ conservator, gives a detailed account of where the extra $1.1 billion went.

The paper is part of an effort by FHFA’s OIG to emphasize transparency in its oversight work “to the fullest reasonable extent to foster accountability to stakeholders,” given the taxpayers’ enormous investment in the GSEs, their critical role in the secondary mortgage market (a 70 percent market share of newly-issued mortgage-backed securities), the unknown duration of the conservatorships, and the uncertain future of Fannie Mae and Freddie Mac to remain profitable. Despite the GSEs’ high leverage, lack of capital, conservatorship status, and uncertain future, they have grown in size under the conservatorship, which is now in its eighth year.

Expenses for Fannie Mae increased by more than 30 percent during the four-year period, from $2.366 billion in 2012 up to $3.092 billion by the end of 2015. The net increase in expenses over the four-year period amounted to $726 million.

The majority of the increase for Fannie Mae went to the implementation of specific FHFA strategic goals and initiatives ($476 million) and implementation of Fannie Mae’s strategic goals and initiatives ($369 million). Consulting services and miscellaneous items such as Enterprise Risk Management, human resources, multifamily expenses, and legal fees accounted for a combined increase of about $60 million.

3-11 FHFA GraphThe FHFA’s strategic goals and initiatives that accounted for much of the increase were pension plan termination ($315 million), Common Securitization Platform (CSP) Integration ($145 million), and reduction of retained portfolio ($16 million). Fannie Mae’s goals and initiatives that resulted in an increase in expenses were critical safety and soundness ($267 million) and other modernization efforts ($102 million).

The factors that led to decreases in expenses for Fannie Mae were Credit and Making Home Affordable ($41 million), Underwriting, Pricing, and Capital Markets ($62 million), and miscellaneous ($76 million), which included extraordinary litigation, customer engagement, communications, and marketing services, maintenance, and corporate expense.

For Freddie Mac, expenses rose from 2012 to 2015 by 24 percent, from $1.561 billion up to $1.937 billion, a net increase of about $376 million.

Likewise for Freddie Mac, the implementation of FHFA’s specific strategic goals and initiatives (CSP, reduction of retained portfolio, and pension plan termination) resulted in an increase of $128 million over the four-year period. Implementation of specific Freddie Mac strategic goals and initiatives (loan advisor suite, enhanced and new operations and technologies capabilities, and pricing execution) resulted in an increase of $105 million. Freddie Mac’s core business accounted for more than half of the total $376 million net increase at $233 million. The increase in the number of employees by 795, from 2,480 to 3,275, resulted in an expense increase of $96 million, and salaries and benefits were increased by about $42 million over the four years.

Offsetting Freddie Mac’s increases in expenses were decreases due to Single-family Extraordinary Credit and Operations Expenses ($54 million) and support staffing ($41 million).

The OIG notes that while the GSEs received a combined $187.5 billion bailout from taxpayers in 2008 to avert insolvency, they have paid approximately $241.2 billion in dividends on that investment through December 2015. The OIG also points out that all increases in expenses were approved by FHFA and that the paper simply reported what the expenses were without determining whether or not they were reasonable.

“While we identified shortcomings with FHFA’s review and approval process in our earlier evaluation, we recognize that FHFA approved all of these increases and we do not seek to second-guess its decisions,” wrote Stacey Nahrwold, Acting Deputy Inspector General for Audits, in the paper. “As a consequence, we make no findings on the reasonableness of the net increases in expenses in this white paper.”

Click here to view the entire white paper, including a breakdown and full explanation of all expenses.

About Author: Brian Honea

Brian Honea
Brian Honea's writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master's degree from Amberton University in Garland.

216 comments

  1. Pingback: GSEs’ Expenses Are Way Up; Where Did the Money Go? - Appraisal Buzz

  2. Pingback: GSEs’ Expenses Are Way Up; Where Did the Money Go? - Brokers TitleBrokers Title

  3. Pingback: Advertising Expense In Accounting | Rates for CPA Services for SMB

  4. Pingback: 4cyn5et4m5t94c5t9m4vn54cx65

  5. Pingback: define alcoholism

  6. Pingback: دانلود شهرزاد قسمت هفتم فصل دوم

  7. Pingback: دانلود شهرزاد قسمت دوازدهم فصل دوم

  8. Pingback: دانلود شهرزاد قسمت نهم فصل دوم

  9. Pingback: قیمت پنجره

  10. Pingback: porn

  11. Pingback: paydaycgtloansnhj.com

  12. Pingback: دانلود قسمت چهارده عاشقانه

  13. Pingback: دانلود قسمت سیزده عاشقانه

  14. Pingback: Anna Bell Peaks

  15. Pingback: Mia Malkova

  16. Pingback: August Ames

  17. Pingback: terörist sosyalmarketim

  18. Pingback: Paleo Diet

  19. Pingback: xxx hd video

  20. Pingback: xxx videos hd

  21. Pingback: movies

  22. Pingback: смотреть онлайн фильмы 2017

  23. Pingback: دانلود قسمت دوازه عاشقانه

  24. Pingback: Loyola College for Sale

  25. Pingback: دانلود قسمت 11 شهرزاد 2

  26. Pingback: دانلود قسمت پنجم شهرزاد دوم

  27. Pingback: دانلود قسمت دوازدهم عاشقانه

  28. Pingback: دانلود قسمت سوم شهرزاد دوم

  29. Pingback: دانلود قسمت سیزده عاشقانه

  30. Pingback: bypass windows 7 password

  31. Pingback: دانلود قسمت اول فصل دوم شهرزاد

  32. Pingback: Ariel

  33. Pingback: Admission via Good Donation in any medical college

  34. Pingback: payday loan

  35. Pingback: online payday loans

  36. Pingback: porno

  37. Pingback: porno

  38. Pingback: porno

  39. Pingback: videos porno

  40. Pingback: porno gratis

  41. Pingback: porno

  42. Pingback: videos porno

  43. Pingback: videos porno

  44. Pingback: پنجره دو سه جداره ساخت فروش در ایران

  45. Pingback: دانلود قسمت 17 عاشقانه

  46. Pingback: دانلود فیلم سریال عاشقانه

  47. Pingback: Data Logger

  48. Pingback: قیمت پنجره دوجداره در ایران

  49. Pingback: Facial Spa Services Hillsboro Beach

  50. Pingback: Acne Facial Treatments Sunrise

  51. Pingback: Acne Facial Treatments Pembroke Park

  52. Pingback: Acne Facial Treatments Sunrise

  53. Pingback: فروش توری پنجره دوجداره

  54. Pingback: دانلود موزیک

  55. Pingback: پنجره دوجداره

  56. Pingback: دانلود قسمت ششم شهرزاد

  57. Pingback: cum

  58. Pingback: Roof Repair Long Island

  59. Pingback: compare hotel prices

  60. Pingback: Nintendo 64 games

  61. Pingback: en savoir plus

  62. Pingback: cheap zynga chips

  63. Pingback: actual-news.pro

  64. Pingback: jake burgess

  65. Pingback: دانلود قسمت هفتم شهرزاد دوم

  66. Pingback: sexy men underwear

  67. Pingback: پنجره

  68. Pingback: Judi Poker Online

  69. Pingback: coin-banks bitcoin

  70. Pingback: bitcoin hft

  71. Pingback: Porn World

  72. Pingback: rookie baseball card collection

  73. Pingback: nicocontrol comprar

  74. Pingback: دانلود قسمت هشتم شهرزاد

  75. Pingback: anime

  76. Pingback: vpm

  77. Pingback: best price golf clubs australia

  78. Pingback: clash royale hack

  79. Pingback: دانلود شهرزاد قسمت 13

  80. Pingback: ΤΣΑΝΤA TRUSSARDI

  81. Pingback: http://pupo.ch/mypupo/panda/panda2/index.php?mod=users&action=view&id=1323007

  82. Pingback: free blazing

  83. Pingback: kids cartoons before and after

  84. Pingback: wrong head

  85. Pingback: Antshares

  86. Pingback: read what he said

  87. Pingback: 16 دانلود سریال شهرزاد

  88. Pingback: Prezentacionnoe video

  89. Pingback: دانلود عالیجناب دوم

  90. Pingback: دانلود عالیجناب اول 1

  91. Pingback: دانلود

  92. Pingback: دانلود فیلم ایرانی

  93. Pingback: wrong eyes

  94. Pingback: game

  95. Pingback: School Assembly Speakers

  96. Pingback: Best Baby Crib Mattress

  97. Pingback: Reconditioned Auto Batteries

  98. Pingback: Pig Stop motion

  99. Pingback: Cartoon Comedy

  100. Pingback: ounass

  101. Pingback: قیمت پنجره

  102. Pingback: پنجره ضد سرقت

  103. Pingback: bus songs

  104. Pingback: آموزش پنجره دوجداره

  105. Pingback: Помощь психолога

  106. Pingback: latest tech updates

  107. Pingback: cheap golf clubs

  108. Pingback: kids songs

  109. Pingback: coupon codes

  110. Pingback: Nursery Rhymes

  111. Pingback: aws online course

  112. Pingback: دانلود فیلم سریال

  113. Pingback: دانلود فیلم روز

  114. Pingback: rent home

  115. Pingback: Pay Per Click UK

  116. Pingback: دانلود فیلم

  117. Pingback: تعویض پنجره دوجداره

  118. Pingback: Pixel Gun hack

  119. Pingback: Double

  120. Pingback: peppa Pig

  121. Pingback: Web Design Fort Worth

  122. Pingback: real life superhero for kids

  123. Pingback: پنجره

  124. Pingback: پنجره دوجداره

  125. Pingback: پنجره دوجداره

  126. Pingback: Assignment Services

  127. Pingback: دانلود فیلم

  128. Pingback: پنجره

  129. Pingback: gernas kids

  130. Pingback: پنجره دوجداره

  131. Pingback: شرکت تولیدی پنجره دوجداره

  132. Pingback: https://independent.academia.edu/davidsonjorge

  133. Pingback: IELTS centre in Karachi

  134. Pingback: مشاوره کسب و کار اینترنتی

  135. Pingback: google hd porn

  136. Pingback: https://buyweednowonline.ca/

  137. Pingback: bottom slim singapore outlet

  138. Pingback: kids songs

  139. Pingback: Mitch McConnell

  140. Pingback: garden bridges california

  141. Pingback: judi telak 4d online

  142. Pingback: domino qiuqiu

  143. Pingback: Orlando best personal Trainers

  144. Pingback: walmartone login

  145. Pingback: seomarketing.JeStartpagina.nl

  146. Pingback: Limo Rental Vancouver BC

  147. Pingback: a knockout post

  148. Pingback: https://h30434.www3.hp.com/t5/user/viewprofilepage/user-id/3003687

  149. Pingback: private proxies

  150. Pingback: window

  151. Pingback: window

  152. Pingback: دانلود فیلم

  153. Pingback: download best

  154. Pingback: دانلود فیلم اکسیدان

  155. Pingback: online car insurance quotes without personal information

  156. Pingback: Yakima Web Designer

  157. Pingback: for Kids

  158. Pingback: watch porn on instagram

  159. Pingback: dig this

  160. Pingback: Nursery Rhymes

  161. Pingback: قیمت پنجره

  162. Pingback: دانلود

  163. Pingback: پنجره

  164. Pingback: پنجره

  165. Pingback: top 40 music charts

  166. Pingback: Nursery Rhymes

  167. Pingback: garden

  168. Pingback: http://www.crunchyroll.com/user/robotwiper1

  169. Pingback: garden bridge

  170. Pingback: hot pants malaysia

  171. Pingback: Online Live Casino Malaysia

  172. Pingback: daily vlog

  173. Pingback: EVA TV

  174. Pingback: short haircuts

  175. Pingback: business cards

  176. Pingback: leia

  177. Pingback: live sex cams

  178. Pingback: Türnotöffnung

  179. Pingback: Schlüsselnotdienst

  180. Pingback: gay porn

  181. Pingback: صيانه

  182. Pingback: chef

  183. Pingback: kitchen tools for

  184. Pingback: window

  185. Pingback: download

  186. Pingback: پنجره دوجداره

  187. Pingback: pornolaba.mobi

  188. Pingback: دانلود سریال

  189. Pingback: download movie

  190. Pingback: download

  191. Pingback: download

  192. Pingback: دانلود فیلم

  193. Pingback: پنجره

  194. Pingback: garden bridges San Francisco

  195. Pingback: carte grise

  196. Pingback: seo jacksonville

  197. Pingback: Bad Credit Remortgages

  198. Pingback: best real estate theme wordpress 2017

  199. Pingback: Leona

  200. Pingback: Self Storage Units and Facilities in Doraville GA

  201. Pingback: Self Storage Units and Facilities in Station Square in Pompano Beach

  202. Pingback: Self Storage Units and Facilities in Linden

  203. Pingback: ?S????S ??????

  204. Pingback: watch it movie streaming

  205. Pingback: comedian movie

  206. Pingback: Agen Bola

  207. Pingback: cartoon

  208. Pingback: Easiest Way To Make Money

  209. Pingback: HARD DEEP ANAL VERY DIRTY The first expedition in the ass our friend

  210. Pingback: personnel consultant

  211. Pingback: puppy patrol

  212. Pingback: how to think positive

  213. Pingback: buy hacklink google

  214. Pingback: vape mods parts

  215. Pingback: bariatric surgeon in delhi ncr

  216. Pingback: cheap jordans

Leave a Reply

Scroll To Top