AFTER A SIX-MONTH TRIAL PERIOD, FANNIE Mae's board of directors has named Daniel H. Mudd president and chief executive officer.
Mudd had been appointed interim chief executive officer in late December to replace Franklin Raines, who stepped down in the wake of regulatory inquiries after the GSE admitted overstating its earnings.
In its unanimous decision to retain Mudd permanently, the board noted his leadership as Fannie's interim head, as well as his progress in rebuilding relationships with regulators and Congress and restoring the company to capital adequacy, said Board Chairman Stephen B, Ashley.
"The board wanted to see a transformation at Fannie Mae," said Ashley. "Over the past six months, Dan Mudd has begun to put Fannie Mae on the right track, and we are confident that Dan will continue to lead the company in this new direction."
The company also announced that Ashley would continue in his role as chairman of the board.
Mudd, formerly Fannie's chief operating officer, said he will work to "transform Fannie Mae for the future." He said, "As we strengthen Fannie Mae's service to America's housing finance system, we will continue putting our house in order, complete the restoration and re-audit of earnings, achieve our capital restoration plan and strengthen...