August 28th, 2008 Categories: Real Estate News
Fannie Mae has announced the departure of three top executives in the wake of months of bad press and a melting mortgage market.
> Chief Financial Officer Stephen Swad who joined the company just last year will be replaced by David C. Hisey, Fannie Mae’s senior vice president and controller and a three-year veteran of the organization.
> Chief Business Officer Robert J. Levin will be replaced by Peter Niculescu, a nine-year veteran who has worked in the company’s capital markets business.
> Chief Risk Officer Enrico Dallavecchia will be replaced by Michael Shaw, senior vice president for credit risk oversight who has been with Fannie for two years.
Daniel H. Mudd will continue to serve as chief executive officer.
Fannie Mae, and its sister organization Freddie Mac, have been rocked by the the decline in the housing market and revelations about shoddy lending practices. Although shares in both companies have lost most of their value in the past year, prices did rise yesterday for the third straight day. Fannie’s stock rose 86 cents, or 15.3% to close at $6.48. Freddie Mac increased 78 cents, or 19.7% to close at $4.75.
Stay tuned for more shakeups as Freddie Mac looks for a new chief executive to replace long time chair Richard F. Syron.