Fannie Mae Chief Executive Will Step Down Pending Appointment of a Successor

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Jan 10, 2012, 05:02 ET

WASHINGTON, Jan. 10, 2012 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) today announced CEO Michael J. Williams' decision to step down. Williams was appointed President and Chief Executive Officer in 2009, after the company was placed in federal conservatorship. He will continue as CEO and as a director until Fannie Mae's board of directors names a successor, at which time he will leave the company.

"As CEO, I have focused the company on providing the necessary funding to support sustainable homeownership and quality affordable housing; creating the solutions needed to stabilize the market and help homeowners in distress; and building a strong new leadership team that can move the company and the industry forward," said Williams. "For the past three years, we have executed on this important mission, while making fundamental changes to prepare housing finance for a better future. I decided the time is right to turn over the reins to a new leader. As I told our employees today, I am extremely proud of what we have achieved together, and I am confident that they will continue to make a positive difference."

"On behalf of the board of directors, I want to extend our gratitude to Mike for his tireless dedication to Fannie Mae and especially his exemplary service as its leader through three extremely challenging years," said Philip A. Laskawy, Chairman. "As a result of Mike's leadership, Fannie Mae is a better company and our country benefits from a stronger housing finance system."

Under Williams' leadership, Fannie Mae has enabled approximately six million households to refinance into a lower cost mortgage, 1.7 million homeowners to purchase a home and provided financing for nearly one million units of quality, affordable rental housing. The company has built a strong new book of business. This new book, which consists of loans purchased or guaranteed since January 2009, is nearly 50 percent of the company's overall book of business. Through its loss mitigation efforts, nearly one million homeowners have avoided foreclosure, while Fannie Mae has helped to stabilize neighborhoods and reduce credit losses on its legacy (pre-2009) book of business.

Williams joined Fannie Mae in 1991. He led the company's eCommerce and eBusiness divisions, including the development of the innovative Desktop Underwriter product, which became a standard for the housing finance industry. Williams led the company's financial restatement and accounting and control reforms and was appointed chief operating officer in 2005.

Williams' career prior to joining Fannie Mae includes positions with KPMG Peat Marwick and Dupont. A Philadelphia native, Williams earned a master of business administration in finance and a bachelor of science from Drexel University.

Opinions, analyses, estimates, forecasts, and other views of Fannie Mae's Economics & Mortgage Market Analysis (EMMA) Group included in these materials should not be construed as indicating Fannie Mae's business prospects or expected results, are based on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. Although the EMMA Group bases its opinions, analyses, estimates, forecasts, and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current, or suitable for any particular purpose. Changes in the assumptions or the information underlying these views could produce materially different results. The analyses, opinions, estimates, forecasts, and other views published by the EMMA Group represent the views of that group as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.

Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by purchasing or guaranteeing mortgage loans originated by mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.

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SOURCE Fannie Mae