Freddie Mac names chief credit officer

Freddie Mac has appointed Raymond Romano as chief credit officer, the company revealed in a statement on December 29.

In his new position, Romano will lead the company's credit risk management efforts, including credit policy, counterparty credit risk management and loss forecasting. He will report to chief executive officer David Moffett.

Romano has held the role on a temporary basis since it was created after a senior management shake-up in September, when all credit management activities were consolidated under a single new position.

Since joining the company in 2004, Romano had become senior vice-president of credit risk oversight. He previously held positions with financial institutions including North American Mortgage Company and Dime Savings Bank of New York.

On January 5, the Federal Reserve Bank of New York began purchasing fixed-rate mortgage-backed securities (MBS) guaranteed by Freddie Mac as well as fellow government-sponsored enterprises Fannie Mae and Ginnie Mae.

The MBS purchase programme was first announced on November 25, along with a range of measures designed to shore up the US mortgage and housing markets by increasing the availability of affordable lending. As part of the scheme, the Fed will also purchase direct debt obligations from Fannie Mae, Freddie Mac and the Federal Home Loan Banks.

See also: Fed agency MBS purchases to begin within days
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