Fannie Mae names new officers in finance division
|May 19, 2005|
Mortgage financier moves forward with reorganization plan
Moving forward with a reorganization plan in the wake of federal accounting investigations, Fannie Mae has added nine new officers to its finance division, the company announced Wednesday.
Eight of the new officers are in the Controller's Office, which is one of six areas in the company's finance division. The Controller's Office, led by senior vice president and controller David Hisey who joined Fannie Mae in January, includes four major functions: financial controls and systems, financial reporting, accounting operations, and valuation and price verification.
"This is the first phase of implementing a very significant reorganization, which the board has approved," said Fannie Mae board member H. Patrick Swygert. "Reorganizing and strengthening our finance area is a top priority as we progress through the review, re-audit and restatement process."
Swygert added, "We are addressing departmental roles and responsibilities, lines of reporting, segregation of duties, and independence and alignment of functions."
Swygert chairs the board's compliance committee, which was formed to monitor and coordinate compliance with the agreements reached between Fannie Mae's board of directors and the company's safety and soundness regulator, the Office of Federal Housing Enterprise Oversight on Sept. 27, 2004, and supplemented on March 7, 2005.
"As we make these changes, we are working very closely with OFHEO," said Fannie Mae Chairman Steve Ashley. "Adding new talent and implementing stronger financial controls are important steps in fulfilling the company's commitments."
Internal and external reviews and investigations of the mortgage giant are continuing in the wake of a 2004 Securities and Exchange Commission directive ordering Fannie to make accounting corrections that could knock out some $9 billion of past profit. Since then, additional irregularities have been discovered.
The new officers announced this week are: