After talking with its regulator, Fannie Mae has amended the employee contracts of its three top officers -- including chairman/chief executive officer Franklin Raines and chief financial officer Tim Howard -- modifying the conditions under which they can be fired for "cause."The changes appear to be aimed at limiting payouts to the executives in the event they are fired. Fannie disclosed the amended contract language in a Sept. 23 filing with the Securities and Exchange Commission. Under the amended contract language, if Messrs. Raines, Howard, or vice chairman/chief operating officer Dan Mudd are fired for cause they will only be entitled to accrued "base salary." OFHEO recently lost a legal battle with former Freddie Mac chairman Leland Brendsel over $53 million in back pay/compensation owed to him after he was ousted by that company's board. The amended employee contracts at Fannie also contain language that could force the company into splitting the chairman and CEO functions. A Fannie Mae spokeswoman said the amended contracts were "already under way" prior to the accounting allegations levied against Fannie this week.
-
The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
10h ago -
The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
April 24 -
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
April 24 -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
April 24 -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
April 24 -
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24