Fannie Mae and Freddie Mac spent roughly $640,000 this fall to send 100 of their employees to the annual convention of the Mortgage Bankers Association in Chicago, a decision their regulator defended amid criticism from GSE critic, Rep. Randy Neugebauer, R-Texas.
The Federal Housing Finance Agency, which oversees the two in conservatorship, outlined the costs in a letter to Neugebauer, who is chairing a Thursday oversight hearing of the agency.
The GSEs, combined, spent $342,000 for travel, food, hotel rooms, and conference room space and another $74,000 on dinners for their seller/servicer clients.
In a Nov. 23 letter to Neugebauer, FHFA acting director Ed DeMarco mostly defended the spending, but said he would apply greater scrutiny to their sponsorships in the future.
Neugebauer released the letter late Wednesday.
Prior to their takeover in September 2008, it was not unusual for the GSEs to spend well over $1 million sending their employees to the annual MBA trade show and being a “platinum” sponsor of the event.
“This is being blown out of proportion by Congress,” said one GSE vendor, requesting anonymity. “It’s a convenient way for them to see their clients at the show who are all at the same place at the same time.”
