INDUSTRY NEWS - continued
Housing regulator defends Fannie, Freddie exec pay
November 10,2011 - Reuters
Nov 10 (Reuters) - The regulator for Fannie Mae and Freddie Mac responded to criticism from U.S. lawmakers on Thursday and those on Capitol Hill who have called on the agency to rein in pay for executives at the two government-owned mortgage firms. The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, said in a letter to lawmakers dated Nov. 10 that the multimillion-dollar pay structures for top employees at the two firms follows "market compensation measures" to target executive compensation. FHFA acting director Edward DeMarco said the pay structure helps keep executives focused on the firms' priorities while in conservatorship "to minimize taxpayer cost and maintain the flow of credit to our troubled housing markets." The firms were taken into control by the government in 2008. Lawmakers in both chambers and in both parties have expressed shock at revelations the firms, which have been already propped up with about $169 billion in taxpayer aid, had paid out $12.79 million in bonuses for 10 executives.