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» VISIT US ONLINE @ DSNEWS.COM 7 A look at facts you didn't know you couldn't live without. Compiled by the DS News Staff TAKE A LOOK INSIDE THE NUMBERS D ATA B I T S Foreclosure starts totaled 81,900 in May 2015, an increase of about 11 percent from April, according to Black Knight Financial Services. The civilian labor participation rate in was 62.6 percent in June 2015, the lowest in the United States since 1977, according to the U.S. Bureau of Labor Statistics. FANNIE MAE AND FREDDIE MAC CEOS RECEIVE MULTIMILLION- DOLLAR PAY INCREASES INSIDE THE JOURNAL // MOVERS & SHAKERS // ON THE WEB // THE APP SPECTRUM Source: Black Knight Financial Services (as of May 2015) STATES WITH THE HIGHEST SHARE OF NON-CURRENT INVENTORY 1 Mississippi 13.0% 2 New Jersey 10.9% 3 Louisiana 10.1% 4 New York 9.4% 5 Maine 9.4% 6 Rhode Island 9.1% 7 Alabama 9.0% 8 West Virginia 8.3% 9 Florida 8.3% 10 Arkansas 8.2% State Percentage Ranking STATES WITH THE FEWEST BANKRUPTCY FILINGS IN 2015 1 North Dakota 2.2% 2 Colorado 3.2% 3 South Dakota 3.4% 4 Minnesota 3.5% 5 Montana 3.5% 6 Alaska 3.7% 7 California 3.8% 8 Arizona 4.0% 9 Wyoming 4.0% 10 Idaho 4.1% Ranking State Percentage Fannie Mae and Freddie Mac CEOs are expected to receive multimillion-dollar increases to their paychecks approved by the GSEs' regulator, the Federal Housing Finance Agency (FHFA), according to 8K Filings (Mayopoulos and Layton) with the U.S. Securities and Exchange Commission (SEC) at the start of July. On June 29, 2015, the FHFA approved changes to the compensation of Fannie Mae's CEO Timothy J. Mayopoulos and Freddie Mac's CEO Donald H. Layton to address recent objectives outlined by the FHFA. Both salary adjustments were to go into effect on July 1, 2015. According to the SEC filing, Mayopoulos' and Layton's compensations cannot be higher than the 25th percentile of CEO compensation for their comparator group, as described in Fannie Mae's Form 10-Q for the quarter ended March 31, 2015. e SEC outlined that Fannie Mae and Freddie Mac CEOs' direct compensation will consist of an annual base salary of $750,000, fixed deferred salary at an annual rate of $2.05 million, and at-risk deferred salary with an annual target amount of $1.2 million, totaling $4 million. e at-risk deferred salary is based on performance and can be reduced. ese amounts will be prorated for 2015, and both executives have the same structure that applies to other executives within the GSEs. Congress attempted to fight this salary increase earlier this year, stating the raise would not be fair to taxpayers. In May, U.S. Congressman Ed Royce (R-California) announced his plan to submit legislation by to prevent a potential pay increase for Freddie Mac CEO Donald Layton and Fannie Mae CEO Timothy Mayopoulos. e FHFA gave the GSEs authorization to review the salaries of their CEOs. Each CEO made $600,000 without bonuses in 2014. e pay reviews for the top executives at the GSEs are largely due to concerns the enterprises will not be able to stay competitive because their CEOs make less than some lower-ranked executives. FHFA Director Mel Watt directed Freddie Mac to submit a proposed executive compensation for the CEO position that could be as high as $7.26 million per year, the 25th percentile of the market in May. Royce said in a statement on his website that it is "unconscionable" that Freddie Mac would elevate the pay of its CEO to that level while taxpayers are still on the hook. e fact that the GSEs are still under conservatorship of the FHFA, where they have been since September 2008, is still a contentious one among politicians and stakeholders in the housing market. "At a time when American families are still struggling to find their footing financially, it is absolutely unconscionable that regulators would allow the taxpayer- bailed out Freddie Mac to pay its CEO over $7 million dollars a year," Royce said. PAGE 42 GENERAL COUNSEL, SAFEGUARD PROPERTIES COUNSEL'S CORNER WITH Linda Erkkila

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