Continually changing priorities and approaches has the firm in a constant state of flux. Much is said about a human capital plan, which may sound impressive but is essentailly a constant re-evaluation of who could be expendable. Another buzz phrase is shape shifting, which boils down to replacing more senior middle management with lower cost staff. The CIO actually stated that employees should consider a 18 month tenure a good run in the "current environment". Below the officer (VP) level the constant churn is discomforting. At the VP level and above the brain drain is on. If stability is important this isn't the place for you.
After 9 years of conservetorship parallel business plans are about to collide. The Obama administration planned on winding Fannie down with a plan of bringing the capital position to zero by Jan. 2018. Not only is Fannie still in place, it's delivering billions of dollars to Treasure each year. Those dollars are generated from gaurantee fees collected on qualifying mortgages to cover losses related to loan defaults: essentially insurance. But all of the money collected in fees is transferred quarterly to the US Treasury, so there'll no capital to cover related losses. As a result, Fannie Mae would need to draw from Treasury to cover quarterly losses. This is exacerbated by a lower than 35% Corporate Tax rate. Fannie Mae is still writing off losses, but the writeoffs assumed a 35% tax rate. A rate any lower decreases the value of the write-offs, which increases Fannie's tax liability. With no capital in 2018 there's no money to pay higher taxes.
