As Fannie Mae executives retire, critical institutional knowledge disappears

Two longtime Fannie Mae executives are leaving President David Benson is retiring Sometime in early to mid-2024, while Chief Administrative Officer Jeffrey Hayward will leave at the end of this year.

Priscilla Almodovar, Joins Fannie Mae as CEO in December 2022will also assume the title of president, meaning she will now directly manage single-family and multifamily businesses.

Both have been with the company for decades – Benson for 21 years and Hayward for 36 years. Their departures could lead to the firing of the government-backed company’s last remaining key executives with significant institutional knowledge, said David Stevens, former CEO of the Mortgage Bankers Association.

Stevens currently states: “Dave’s knowledge of the business, particularly risk and capital markets, coupled with Jeff’s long-term commitment to clients and expanding access and affordability for creditworthy borrowers, are a perfect combination.” “This leader will leave a huge gap in Fannie Mae’s leadership,” said Mountain Lake Consulting CEO and former federal housing commissioner in an emailed comment.

“Dave and Jeff represent the type of approachable leadership that helped build Fannie Mae’s culture over decades, and unfortunately, they may be done with decades of helping Fannie Mae and Freddie Mac lenders and homeowners over the long term. There is a mass exodus of leadership. , the outlook will cease to exist,” he said.

Federal Housing Finance Agency Administrator Sandra Thompson also commented on the decades of experience Benson and Hayward bring to Fannie Mae’s leadership in a statement on the regulator’s website.

“Their many contributions enable Fannie Mae to excel in its mission of providing affordable and sustainable housing to creditworthy homeowners and renters while ensuring the safety and soundness of the business,” Thompson said. I am confident that Fannie Mae’s leadership, under Priscilla’s leadership, will continue its efforts to effectively fulfill this mission.”

Benson became Fannie Mae president in July 2018, at the same time that then-CEO Timothy Mayopoulos announced his intention to leave the company. Hugh Flatt retires, he added the interim CEO position for about seven months until Almodóvar was hired. Prior to joining Fannie Mae, she served as president and CEO of Enterprise Community Partners, an affordable housing nonprofit.

Fannie Mae and Freddie Mac both have CEO titles Damage caps set by Congress $600,000. FHFA Office of Inspector General 2019 Report After the pair’s changes, including the Mayopoulos/Benson statements, they examined whether they were using the presidency to circumvent that cap. Almodóvar’s compensation remains subject to that cap, and she understands that taking on this additional role will not change that, a Fannie Mae spokesman said.

“We are deeply grateful to Dave and Jeff for their leadership and decades of service,” Fannie Mae Chairman Michael Heid said in a company news release. “With their departure, we are implementing We are succession planning and streamlining our leadership structure to continue advancing our strategy and mission to serve homeowners, renters and the housing market as a whole.”

Hayward is The first person to hold the position of chief administrative officerPreviously served as a multifamily leader. At the time, Fannie Mae said: “The newly created CEO position to oversee affordable housing, green financing, corporate workplace and ESG, human resources, diversity and inclusion will support our efforts in new and more The mission of the field.” Holistic approach. “

Fannie Mae general counsel Terry Theologides will succeed Hayward. Danielle McCoy will take over his vacated position of general counsel and corporate secretary. McCoy currently serves as Senior Vice President, Deputy General Counsel and Deputy Corporate Secretary.

Orogides Joined Fannie Mae in April 2019 Previously served as senior vice president, general counsel and secretary at CoreLogic.

“Fannie Mae is well-prepared for these transitions thanks to thoughtful succession planning and the strong leadership team that Dave, Jeff and others have helped develop over the years,” Almodóvar said in the release. Our leadership team is deep and I look forward to continuing to develop our talent and working with Terry and Danielle in their new roles.”

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