Mortgage Workers Get $210M in Bonuses

The two largest mortgage finance companies in the United States are planning to hand out $210 million in bonuses to their employees despite taking a combined $60 billion in federal bailout money. This revelation likely won’t sit well with the general public, especially consider the outcry that was heard after it came to light that AIG gave more than $160 million in bonuses.

Home for Sale (Image: Flickr)

The two companies, Freddie Mac and Frannie Mae, combine to finance approximately half of all mortgages in the United States. After massive financial troubles, each company is now run by the federal government. In recent months, they have been even more active – financing more than 60% of new mortgages.

Officials with Freddie Mac and Frannie Mae insist that the bonuses are needed to keep employees with the company. Without their key employees, officials say that the businesses would have no chance of turning around. In addition, officials claim that the bonuses are just a small drop in the bucket for many of the employees who have lost millions upon millions of dollars when the stocks of the two companies plummeted by more than 95%.

Of the $210 million in bonuses, approximately $150 million of it is planned to be distributed in 2009.