This past Monday, Anthony Renzi, who heads the largest division at Freddie – the single family mortgage division is leaving. This past year has seen a slew of talent and executives leave this past year, and was no surprise back in March, when Freddie announced their 2011 financial results.
“Freddie saw its voluntary-turnover rate rise to about 13% in the first six months of 2011, up from 8.5% on average over the previous five years, according to the firms’ federal regulator. Fannie’s rose to around 11% after averaging slightly above 6% over the preceding three years.”
After operating in conservatorship for the past few years, the names of both Fannie and Freddie can be unwelcoming to the public, leaving many who currently are employed at either organizations questioning their own commitment and compensation there. Whatever role Fannie and Freddie played during the housing boom and bust, more top talent is expected to leave accelerating destabilization in the organizations, especially as compensation is expected to move away from performance based compensation.
Whether they should be privatized, be dissolved or other, a resolution of any kind would be needed.