Wednesday Waste: Fannie Mae and Freddie Mac
Since September of 2008 Fannie Mae and Freddie Mac, the quasi government lending agencies, have been under tight scrutiny to control the spending going on at the organizations. Unfortunately, it looks like this wasn’t enough to keep the two from spending more than $600,000 dollars on the annual Mortgage Banker’s Association conference.
The inspector general reports that the Fannie and Freddie spent $140,000 dollars to sponsor the event and another $140,000 on meals. While spending on airfare and hotels was within the government’s acceptable limits, the meals alone were cause for question.
This number pales in comparison though to the group’s charitable giving. Down from $73 million in 2008, the groups combined gave $50 million dollars to charities this past year. Fortunately, the company’s charitable donations are scheduled to end in 2013 due to regulations attached to the 2009 bailouts.
With lending practices at the groups resulting in low default rates according to another report released from the same group, we can only hope that conferences for the groups will cost less as well.