Industry News

Fannie Mae appoints new auditor

Names Adolfo Marzol as interim chief risk officer

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Fannie Mae's Board of Directors has approved the appointment of Deloitte & Touche LLP as its independent auditor to perform an audit of 2004 and a re-audit of prior period financial statements that will be restated. The announcement comes in the wake of a top management shakeup, and federal investigations surrounding accounting missteps at the mortgage giant. "Fannie Mae has committed to work with our safety and soundness regulator, OFHEO, to begin restating the company's financial statements," Daniel Mudd, Fannie Mae's interim CEO said. OFHEO stands for the Office of Federal Housing Enterprise Oversight, the federal agency charged with overseeing Fannie Mae and its sister corporation Freddie Mac. Fannie Mae is shareholder-owned, but holds a critical government charter for the housing industry. The company buys mortgages, repackages them and sells them to investors in order to keep a constant flow of funds in the nation's home loan industry. The board also announced today tha...