Industry News

Real estate industry reacts to Fannie Mae shakeup

Management changes in wake of accounting mishaps

The real estate industry appears relatively unconcerned by the recent management shakeup at Fannie Mae, with most saying business will go on as usual despite who heads the nation's top source of financing for home loans. "I don't think it'll make an impact on the housing market," said Bill Moody, president of Lenders First Choice, a title company in Simi Valley, Calif. "I'm not convinced that you're going to stop that machine just by changing the head person." Fannie Mae announced late Tuesday that CEO Franklin Raines had taken early retirement and that chief financial officer Timothy Howard resigned. The departures came less than a week after the Securities and Exchange Commission directed the company to make accounting corrections that could erase $9 billion of past profit. Despite that possibility, Manny Couto, broker of Rosa Agency in Kearny, N.J., believes that Fannie Mae overall is doing a good job for the housing industry, shareholders and the general public. He said investor c...