Industry News

Fannie Mae CEO faces mortgage bankers

Franklin Raines hit with only one accounting-related question

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SAN FRANCISCO–It must have been refreshing for Franklin Raines to be among friendly faces Monday morning. Fannie Mae's CEO was greeted by applause and only one accounting scandal question during a session on Government-Sponsored Enterprises at the Mortgage Bankers Association's annual convention. Raines has faced harsh criticism and intense federal scrutiny since the Office of Federal Housing Enterprise Oversight last month released a scathing 211-page report revealing evidence of improper accounting at the company. The report triggered a wave of shareholder lawsuits as well as a Congressional hearing and a formal investigation by the Securities and Exchange Commission. But those realities were not part of Raines' prepared comments. Instead, he focused on the stability of the current housing market, emerging homeowner markets and the need for Fannie Mae to continue partnering with MBA and its members to keep mortgage funds flowing. Raines spent much of his talk promoting the be...