NEW YORK The head of Fannie Mae, a company
chartered by Congress to help more Americans own homes, reaped
a 7 percent rise in pay last year, to $13.4 million, while the
company lost money and the country suffered its worst housing
crisis in decades.
Fannie Mae FNM.N posted a $2.1 billion loss in 2007 and
its shares fell 33 percent as the subprime mortgage crisis bled
into all parts of the mortgage market while home prices fell
nearly 9 percent.
Fannie Mae Chief Executive Daniel Mudd also received $5.4
million from stock awards that vested in 2007, according to a
Securities and Exchange Commission filing by the company.
Mudd's compensation included just under $1 million in
salary, $2.2 million in incentive payments, about $10 million
from stock and option grants, and $153,531 in other
compensation, according to the filing.
Fannie Mae and its rival Freddie Mac FRE.N hold charters
from the government to support homeownership. The companies,
which are privately owned, do that by raising money from
investors to support combined investments of $1.4 trillion, and
honor guarantees on loans backing mortgage securities they
(Reporting by Chris Sanders; Editing by Leslie Adler)