Industry News

Former FBI director tapped for Fannie Mae board

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Former FBI Director Louis Freeh has been elected to serve on Fannie Mae's board of directors, making him the eighth new member of the board since 2004, when accounting and management scandals forced the company to restate earnings and remove top managers. Freeh, appointed FBI director by President Bill Clinton in 1993, resigned from that position in 2001 and served as general counsel at MBNA Corp. and vice chairman of MBNA America Bank N.A. until 2006. Before serving as FBI director, Freeh was a U.S. District Judge in New York from 1991 to 1993. Fannie Mae's 11-member board includes seven others appointed in the last three years. Chairman of the Board Stephen B. Ashley has been a board member since 1995. Congress created Fannie Mae in 1938 to help make home loans more affordable. Like sister company Freddie Mac, the government-sponsored entities (GSEs) accomplish this by repurchasing mortgages on the secondary market and guaranteeing loans that are securitized and sold on...