Rep. Royce: Fannie Mae Has Fallen Asleep at the Wheel

Rep. Royce: Fannie Mae Has Fallen Asleep at the Wheel

WASHINGTON, D.C. – June 17, 2016 – (RealEstateRama) — U.S. Representative Ed Royce (R-Calif.), a senior member of the House Financial Services Committee, released the following statement after the Federal Housing Finance Agency (FHFA) Office of Inspector General (OIG) issued a report on the increased budget for Fannie Mae’s office relocation:

Congressman Ed Royce
Congressman Ed Royce

“It’s paradoxical that an organization overseeing a huge chunk of the mortgage market can’t get a simple construction project right. Fannie falling asleep at the wheel in this manner is a perfect representation of the GSEs’ model of private gains and public losses. It’s time to put aside the conversation about releasing this enterprise and instead refocus on how to wind it down.”

In a Management Alert dated June 9, 2016, OIG formally notified the FHFA Director that, as of March 10, 2016, the projected cost to build-out Fannie Mae’s new headquarters space to its specifications had risen 53.35% from $164.32/sf to $252.81/sf since January 26, 2015. According to Fannie Mae’s proposal, the net present value (cost) of its consolidation and relocation over the term of its lease (15 years) was $770,481,598.

Last November, the President signed legislation by Rep. Royce to cap the salaries of the CEOs of Fannie Mae and Freddie Mac. It was the first major standalone legislation enacted that dealt with the GSEs since they were placed into conservatorship after the financial crisis.

Contact: Saat Alety (202-225-4111)
Source: U.S. Representative Ed Royce

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Congressman Ed Royce

Edward Randall "Ed" Royce (born October 12, 1951) is an American politician who currently serves as a member of the United States House of Representatives for California's 39th congressional district, and previously the 40th, serving in Congress since 1993. A member of the Republican Party, Royce became the Chairman of the United States House Committee on Foreign Affairs in 2013.

Contact:

Phone: (202) 225-4111
Fax: (202) 226-0335

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