Fannie Mae 2014 Annual Report Download - page 181

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Objectives and Weighting Summary of Performance
Build a new single-family securitization infrastructure for use by the Enterprises and adaptable for use by other
participants in the secondary market in the future—30% weight
The Enterprises are to:
Continue working with FHFA, each other and Common
Securitization Solutions, LLC to build and test the Common
Securitization Platform (“CSP”) and continue the implementation of
required changes to the Enterprises’ related systems and operations
for integration into the CSP. The Enterprises’ work on CSP should
incorporate the following design principles:
• Focus on the functions necessary for current Enterprise single family
securitization activities;
• Include the development of the operational and system capabilities
necessary to issue a single (common) security for the Enterprises; and
• Allow the option for the integration of additional market participants
in a future system.
The objective was achieved. Fannie Mae continued to
work with FHFA, Freddie Mac and Common Securitization
Solutions, LLC on building and testing the common
securitization platform, as well as on implementing
required changes to Fannie Mae’s systems and operations
to integrate with the CSP. See “Business—Housing Finance
Reform—Conservator Developments” for more
information on the progress of the common securitization
platform initiative.
Identify key components, features and standards needed for a single
(common) security in the CSP. Assess key issues and begin to address
these issues:
• Continue to explore other shorter-term changes that may improve
market liquidity in the Agency MBS market.
The objective was achieved. Fannie Mae worked with
FHFA and Freddie Mac on a Request for Input published
by FHFA in August 2014 on the proposed structure for a
single security and engaging in follow up and outreach
activities. See “Business—Housing Finance Reform—
Conservator Developments” for more information on the
single common security.
Provide active support for mortgage data standardization initiatives:
• Servicing Data and Technology Initiative.
Engage with FHFA and the industry to identify current and
anticipated mortgage servicing data and technology gaps in order
to explore technology improvements and expand data
standardization.
• The Uniform Closing Disclosure Dataset (UCD) initiative.
Develop a standardized dataset to support the Consumer Financial
Protection Bureau’s Integrated Mortgage Disclosure Regulation
and Closing Disclosure;
Create a strategy for the collection and use of the UCD dataset;
and
Publish an industry announcement of the UCD dataset, as well as
a timeline for the collection of the data.
• Uniform Loan Application Dataset.
Reassess loan application data needs;
Update the physical format of the Uniform Residential Loan
Application, and
Demonstrate progress towards creating a draft Uniform Loan
Application Dataset specification.
The objective was achieved. Fannie Mae actively
supported these mortgage data standardization initiatives,
which are designed to improve the accuracy and quality of
loan data through the mortgage lifecycle with the
development and implementation of the uniform data
standards for single-family mortgages. Fannie Mae’s
activities in this area included: participating in and
supporting significant outreach activities with FHFA and
Freddie Mac in connection with the Servicing Data and
Technology Initiative; working with Freddie Mac on the
UCD by providing the industry a standardized dataset
specification and supporting documents in March 2014 and
announcing the plans and timeline for the collection of
UCD in December 2014; and, coordinating with Freddie
Mac, conducting industry outreach, developing a draft
Uniform Loan Application Dataset specification and other
activities in support of the Uniform Loan Application
Dataset initiative.
Assessment by Board of Directors of Company Performance
In April 2014, the Board established the 2014 Board of Directors’ goals, which are presented in the table below. Performance
against these goals was a factor the Board considered in determining the individual performance of the named executives for
purposes of the individual performance-based component of the named executives’ 2014 at-risk deferred salary. The Board did
not assign any relative weight to the goals.
In late 2014 and early 2015, the Compensation Committee reviewed performance against the 2014 Board of Directors’ goals
and related metrics. In connection with the Compensation Committee’s review, management provided the Compensation
Committee with a report assessing management’s performance against the goals, which was reviewed for accuracy by our
Internal Audit group. The Compensation Committee considered management’s assessment of its performance against the goals
and also discussed with the Chief Executive Officer the performance of the company and of each named executive (other than
the Chief Executive Officer).
The Compensation Committee noted in its review that management’s achievements with respect to the 2014 Board of
Directors’ goals were accomplished in a complicated and evolving operating environment, at a time when management was
continuing to implement major organizational changes, designing and implementing changes to the company’s systems and