Per the New York Times, Freddie Mac and Fannie Mae are to receive more Federal funds. The new deal removes the $400 billion cap on money to be paid to Freddie and Fannie over three years. While this should increase liquidity in the mortgage industry, there is an interesting side note. It turns out that the executives in charge of the two mortgage giants will be receiving some pretty hefty compensation, and not in the form of stock.
Here's the compensation package for the chief executives of both companies: "$900,000 salary, $3.1 million in deferred payments in 2010 that are not dependent on performance and an additional $2 million tied to meeting certain goals." Here's a great idea -- why not roll some of that money into securing loan modifications for the multitudes of people with distressed mortgages.
