Fannie Mae appoints Mudd as permanent president and CEO.
Mudd had been appointed interim chief executive officer in late December to replace Franklin Raines, who stepped down in the wake of regulatory inquiries after the GSE admitted overstating its earnings.
In its unanimous decision to retain Mudd permanently, the board noted his leadership as Fannie's interim head, as well as his progress in rebuilding relationships with regulators and Congress and restoring the company to capital adequacy, said Board Chairman Stephen B, Ashley.
"The board wanted to see a transformation at Fannie Mae," said Ashley. "Over the past six months, Dan Mudd has begun to put Fannie Mae on the right track, and we are confident that Dan will continue to lead the company in this new direction."
The company also announced that Ashley would continue in his role as chairman of the board.
Mudd, formerly Fannie's chief operating officer, said he will work to "transform Fannie Mae for the future." He said, "As we strengthen Fannie Mae's service to America's housing finance system, we will continue putting our house in order, complete the restoration and re-audit of earnings, achieve our capital restoration plan and strengthen confidence in Fannie Mae with our regulators, investors, customers and affordable-housing partners."
Ashley noted the board conducted its review and selection of Mudd in consultation with GSE regulator OFHEO.
"Mr. Mudd has played a key role in the transformation of Fannie Mae, and I look forward to continuing the development of a strong, constructive relationship between Fannie Mae and OFHEO," said OFHEO Acting Director Stephen Blumenthal in a statement.
MBA President and Chief Executive Officer Jonathan Kempner also praised Mudd's permanent retention as Fannie's chief executive.
"Throughout his tenure at Fannie Mae, and specifically in the last six months as interim CEO, Dan has shown strong leadership and a dedication to ensuring the safety and soundness of Fannie Mae," said Kempner. "He brings a wealth of experience to his new position, both from a general finance perspective and from his institutional knowledge of Fannie Mae."--C.W.
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|Title Annotation:||Federal National Mortgage Association, Daniel H. Mudd, chief executive officer|
|Date:||Jul 1, 2005|
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