Industry News

CEO: Days of ‘arrogant, defiant’ Fannie Mae had to end

Mudd details steps in progress to 'fix' mortgage giant

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Fannie Mae has established a new senior management team, made progress on a financial restatement and changed its attitude, Daniel Mudd, the mortgage giant's CEO, told a Senate committee today. In prepared testimony before the Senate Banking Committee, Mudd described changes Fannie has put in place following the accounting scandal that has rocked the government-sponsored enterprise. "The days of arrogant, defiant, 'my way' Fannie had to end," Mudd said. "We are making progress. And we have much more to do. I am determined to do it," Mudd said Fannie Mae was accused of serious accounting problems by The Office of Federal Housing Enterprise Oversight in September 2004. The Securities and Exchange Commission subsequently ordered the company to restate earnings back to 2001 -- a correction expected to reach an estimated $11 billion. The mortgage giant has continued to come under fire ever since, with OFHEO in May releasing a stinging report detailing an unethical corporate culture where F...