Mortgage Daily Logo

Senator Criticizes Fannie’s Spending on TX Office

Mortgage News

A veteran U.S. senator is hammering mortgage giant Fannie Mae over its plans for a new regional headquarters in Plano, Texas.

Sen. Chuck Grassley (R-Iowa) has raised a red flag over he says are “$24.2 million in excessive costs for the leased building in Plano.”

Fannie last year leased at 10-story, 330,000-square-foot building near the southeast corner of the Dallas North Tollway and State Highway 121.

Plano-based developer Granite Properties is building the high-rise for Fannie, which plans to downsize its Dallas-area offices and move them into the new tower in the Granite Park development.

Grassley in a letter to Federal Housing Finance Agency Director Melvin Watt said that deal for the new Plano office indicates a lack of oversight.

“Choosing an area of Dallas known as the ‘platinum corridor’ makes me wonder who’s minding the store,” Grassley said. “It is inexcusable that neither Fannie Mae nor FHFA have conducted an appropriate review to determine the reasonableness of the lease or the budgeted build-out costs for this project.

“As an agency charged with oversight of the mortgage market, Fannie Mae has an even greater responsibility to effectively manage its own real estate project(s) and to do so in a manner that is not wasteful of taxpayer dollars.”

Grassley asked FHFA — which oversees Fannie — to provide a detailed accounting of the decision to move to the new Plano building and an analysis of the costs.

“Please explain why the build-out costs per square foot increased for the Granite Park VII office space, from $200 to $234.02 over a five-month period,” he said in the letter.

Fannie signed a 15-year lease in the Granite Park building, which will be ready late this year.

It’s moving workers from the Dallas Galleria office towers and other locations in North Texas.

Grassley is chairman of the Senate Judiciary Committee, member of the Senate Finance Committee and has been in office since 1981.

Related Posts

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam