Industry News

Fannie Mae fined for soft money donations

Mortgage corp. violated Federal Election Campaign Act

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Home loan finance giant Fannie Mae is one of three organizations fined a total of $132,000 for violating the Federal Election Campaign Act, the Federal Election Commission (FEC) reported Wednesday. Under conciliation agreements made with the FEC, Fannie Mae will pay $10,000 in civil penalties, the Republican National Committee will pay $98,000 and the National Republican Senatorial Committee will pay $24,000. The FEC found that certain donations from Fannie Mae between 1998 and 2000 were made to or deposited in nonfederal accounts of the party committees that were not "building funds." The Federal Election Campaign Act prohibits contributions or expenditures from congressionally chartered corporations in connection with any election. The law in effect at the time provided for a specific exception for contributions to building fund accounts. Fannie Mae is a shareholder owned corporation chartered by the federal government to ensure a constant flow of mortgage funds to the nation's...