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Management Alert: Need for Increased Oversight by FHFA , as Conservator of Fannie Mae, of the Projected Costs Associated with Fannie Mae’s Headquarters Consolidation and Relocation Project

June 16, 2016
By Federal Housing Finance Agency Office of Inspector General

The Federal Housing Finance Agency (FHFA) Office of Inspector General (OIG) conducted a review of an anonymoushotline complaint alleging, among other things, excessive spending on Fannie Mae’s relocation to new headquarters in downtown Washington, D.C.

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The Federal Housing Finance Agency (FHFA) Office of Inspector General (OIG) conducted a review of an anonymous
hotline complaint alleging, among other things, excessive spending on Fannie Mae’s relocation to new headquarters in downtown Washington, D.C.  Based on facts learned during that review, we believe there are significant financial and reputational risks from the projected costs associated with Fannie Mae’s relocation of its headquarters that warrant immediate, sustained, and comprehensive oversight from FHFA, the conservator of Fannie Mae. Among its finding, despite requiring a bailout of more than $116.1 billion in taxpayer funds, Fannie Mae decided to build an extravagant new headquarters building in Washington, D.C. The The Inspector General of the Federal Housing Finance Agency, the conservator of Fannie Mae under the terms of the bailout, found the cost of the estimated build-out costs had gone 53% over budget.