The Treasury Department will have to sign off on the new hire and the salary. And any CEO will have to take a lot of marching orders from regulators.
“You’re basically being told what to do,” said Guy Cecala, publisher of Inside Mortgage Finance, a trade publication in Bethesda, Md. “I’m not sure that there’s any management being done.”
Together, Fannie and Freddie own or guarantee almost 31 million home loans worth about $5.5 trillion. That’s more than half of all U.S home mortgages.
Since the government takeover, “their mission has changed dramatically,” said Bert Ely, an Alexandria, Va.-based banking industry consultant and a longtime critic of the two companies. “It’s increasingly an arm of the federal government.”