Restructuring and resignations at Fannie Mae

US housing agency Fannie Mae has undergone significant management changes after going in to conservatorship on September 7.

As subprime mortgage-related losses mounted at the government-sponsored entity (GSE), which together with Freddie Mac, had $5.4 trillion of mortgage-backed securities (MBS) and debt outstanding, the US Treasury placed both agencies into a conservatorship. Effectively, that saw legal control of both entities put in the hands of the Federal Housing Finance Agency (FHFA).

Fannie Mae announced the realignment of its organisational structure with the company’s three main lines of business - single-family mortgage guaranty, capital markets, and housing and community development - reporting directly to Herbert Allison, president and chief executive.

Allison said: "the company's organisation will be flatter, with clear lines of authority and strong checks and balances, and a closer link between our businesses and top management.”

Simultaneously, the company announced the resignations of chief business officer, Peter Niculescu; executive vice president and general counsel, Beth Wilkinson; executive vice president and chief information officer, Rahul Merchant; and senior vice president for government and industry relations, Duane Duncan.

No announcement has yet been made on their successors.

See also:

US authorities step in to rescue GSEs
Fannie and Freddie equity plunge continues as bailout looms
Fed to support Fannie and Freddie