GSE's Gone Wild

"Fannie Mae and Freddie Mac spent roughly $640,000 this fall to send 100 of their employees to the annual convention of the Mortgage Bankers Association in Chicago, a decision their regulator defended amid criticism from GSE critic, Rep. Randy Neugebauer, R-Texas" ... in today's news ... looks like a perk to me, it's not about attracting more business!

Back in the day when my company was a Freddie Mac Seller/Servicer, I remember spending some fun time as a guest, with their President Phil Brinkerhoff (sp) in Chicago at the same MBA Annual convention. I vividly recall their spending money not unlike drunken sailors in their hospitality suite convention-long party - cuban cigars, etc. And at that time it's big sister was struggling with several quarters of losses with CEO Dave Maxwell (a guy I also knew then) @ Fannie trying to fix it, so baby brother Freddie had the better rates. But, don't get me wrong, I popped in on a party or 2 of Fannies also. This Congressman has hit the nail on the head, these execs tried last month to jam down gagging bonuses for themselves, they obviously feel entitled - what the hell it's not their money ... it's YOURS and MINE! Even their new regulators are already doing a crappy job of oversight so far.