For the first time in more than six years, Fannie Mae will soon be run by someone other than Tim Mayopoulos.
Back in July, Fannie Mae announced that Mayopoulos planned to step down “by the end of the year,” but did not specify a date for his departure.
Now, Mayopoulos’ days as Fannie Mae’s CEO are numbered – literally.
Fannie Mae announced Monday that Mayopoulos plans to leave the company on Oct. 15, 2018.
In his stead, the government-sponsored enterprise is naming former Berkadia Commercial Mortgage CEO Hugh Frater to serve as interim CEO.
Frater currently serves on Fannie Mae’s board, and has done so since 2016. Frater also currently serves as non-executive chairman of the board of VEREIT and as a director of ABR Reinsurance Capital Holdings.
Frater served as CEO of Berkadia from 2010 to April 2014, when he became chairman of the company’s board, a position he held from April 2014 to December 2015.
Earlier in his career, Frater was an executive vice president at PNC Financial Services, leading the company’s real estate division and was also a founding partner and managing director of BlackRock.
“On behalf of the board of directors, we are excited to have an executive with such broad experience and impressive track record as our new interim CEO,” said Egbert Perry, chairman of Fannie Mae’s board of directors. “Hugh has a deep understanding of the housing and the financial services industries, and his experience on our board makes him an ideal choice to lead Fannie Mae as the interim CEO.”
Frater replaces Mayopoulos, who has served as Fannie Mae’s CEO since June 2012.
During his time with the GSE, Mayopoulos helped lead the company back from the brink of collapse. For a deep dive into Mayopoulous’ tenure at Fannie Mae, check out HousingWire Magazine’s cover story on Mayopolous from September.
“Under Tim’s Leadership, Fannie Mae helped stabilize the housing market, while strengthening the company’s business model, returning it to profitability, and positioning it well for the future. Tim has delivered for America’s housing market and for taxpayers,” Perry said.
“Our board of directors is deeply grateful for Tim’s years of dedication and stewardship, and his commitment to helping to make housing finance safer and better,” Perry added. “We will miss his remarkable presence at the helm of the company, and wish him the very best as he enters the next phase of his professional career.”
Mayopoulos said that the company is in good hands with Frater.
“I am confident that Hugh will be an excellent complement to the strong management team at Fannie Mae,” Mayopoulos said. “Hugh will serve as a terrific leader who will maintain our momentum and move the company forward as it addresses the needs of both today’s and tomorrow’s homebuyers and renters, while strengthening the housing finance system.”
Frater, for his part, said that he is looking forward to his new role.
“I have great respect for Fannie Mae and the significant role it plays in our housing system. I am humbled and excited to serve at an institution that has made tremendous strides in supporting its customers and making housing more affordable for millions of Americans while reducing risk to taxpayers,” Frater said. "I look forward to working alongside the leadership team as we continue to look for new ways to serve our customers, implement our strategy and strengthen the company.”
Frater is expected to take over on Oct 16. 2018, pending Federal Housing Finance Agency approval.