Fannie Mae Dallas Workplace Relocation
Frequently Asked Questions
Q. Why is Fannie Mae moving its Dallas workplace?
A. Fannie Mae currently occupies portions of three leased properties located within three miles along the Dallas North Tollway. The leases on all three facilities are set to expire at different times throughout 2018. This prompted the company to examine whether it should stay in its current Dallas facilities or move to a single, consolidated facility. After extensive review and analysis, Fannie Mae decided to move to a single leased facility in Plano, TX, near the end of 2017. Moving to a single location will enable the company to reduce costs by providing a more efficient working environment, consolidating services, and reducing overall square footage by more than 100,000 square feet.
Q. Where is Fannie Mae moving?
A. Fannie Mae executed a 15-year commercial lease for office space within a single building to be known as Granite Park VII in Plano, TX. Fannie Mae chose this location for a number of reasons, including competitive pricing terms offered by the landlord, space efficiency, flexible lease term in case our needs change.
Q. What are the terms of the lease?
A. It is important to note that the cost of an ongoing construction project is inherently dynamic. On a 15-year net present value (“NPV”) basis, the move is projected to save taxpayers at least $86 million. The projected taxpayer savings is based on a difference between a projected NPV of $332 million to stay in the company’s current facilities and a preliminary estimated NPV of $246 million for the new facilities. As the company continues to refine the numbers based on actual costs, the savings to taxpayers is likely to increase significantly.
In addition, Fannie Mae will occupy significantly less square footage in the new space compared to the currently leased space. It will go from approximately 450,000 square feet of occupied space to approximately 330,000 square feet at the Granite Park VII location.
Fannie Mae also negotiated favorable and flexible lease terms with the property's landlord. The company entered into a 15-year lease to avoid higher upfront costs associated with shorter-term leases. At the same time, the company successfully negotiated subleasing and assignment rights for the entire lease term in case our needs change.
Q. Is this move appropriate for a company in conservatorship?
A. Yes. Fannie Mae’s decision to consolidate its Dallas-area operations furthers the interest of conservatorship. Moving to a single leased facility will enable the company to reduce costs, reduce occupied space, work more efficiently, and have a greater ability to sublease should the company be significantly restructured in the future. In fact, Fannie Mae will occupy significantly less square footage in the new space – approximately 330,000 square feet, down from its current total square footage of approximately 450,000 square feet. It is important to note that the cost of an ongoing construction project is inherently dynamic. The project is within the anticipated budget and is on target to save taxpayers at least $86 million.
Q. Why does Fannie Mae have such a large organization in Dallas?
A. Fannie Mae’s national loan servicing and REO-related functions are located primarily in Dallas and comprise a large share of the company’s overall operations in that region. When the U.S. housing and financial crisis put millions of homeowners at urgent risk of foreclosure, Fannie Mae responded by significantly expanding its Dallas operations to support the market.
Q. Is the company planning to shrink its workforce in Dallas now that the crisis is over?
A. The company’s Dallas workforce has been reduced over the past few years due in part to the significant decline in mortgage delinquencies. Fannie Mae regularly assesses its human capital needs and makes adjustments as necessary to align with business priorities and the needs of the marketplace.
Q. What are the company’s plans for other offices across the country?
A. The company shall conduct similar “stay/go” analyses of all of its office spaces over the coming years. Fannie Mae has already announced its plans to move to a single leased space in Washington, DC. As we did in DC and Dallas, we will consider the cost-benefit of staying in the current location or moving to a new space. Any decision to relocate our other offices will be in the best interest of the taxpayer when the benefit outweighs the cost.