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 that in accordance with its agreement with OFHEO, it has named Adolfo Marzol to serve as the interim chief risk officer for the company. Marzol currently serves as Fannie Mae’s senior vice president for corporate strategy. Prior to this position, Marzol served as the chief credit officer for the company.

Fannie Mae’s CEO, Franklin Raines, took early retirement, and its chief financial officer, Timothy Howard, resigned Dec. 21. The two left in the wake of a Securities and Exchange Commission directive to make accounting corrections that could knock out some $9 billion of Fannie Mae’s past profit.

In addition, the company today announced that on Dec. 30, Timothy Howard resigned from its Board of Directors, effective immediately.


Send tips or a Letter to the Editor to or call (510) 658-9252, ext. 133.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription