Fannie, Freddie Criticized for High Salaries

Despite the last several years of the housing crisis, a new report released by the FHFA inspector general shows that income levels of senior managers at Fannie and Freddie haven’t suffered.

The report, which was released today, analyzed the 2011 income levels of 2,000 senior employees. More than 300 employees with “vice president” titles had a median pay of $388,000, while the remaining 1,650 at “director” levels had a median pay of $205,000.

According to the report, the median pay for these 2,000 senior managers increased by 5 percent in 2010 and another 4 percent in 2011. Though these salaries are consistent with private sector jobs, they are much higher than the wages received by most employees at other federal agencies.

Members of Congress are criticizing these pay increases, saying that the nationalization of Fannie and Freddie should require these mortgage giants to compensate staff in a manner comparable with other government entities.

Since Fannie and Freddie were taken over by the government four years ago, they have cost taxpayers a total of about $137 billion.