Leading home purchase lender Prospect Mortgage appointed former president and CEO of Fannie Mae Michael Williams as chairman of its Board of Directors.

Prospect is backed by Sterling Partners, a private equity firm, with $5 billion of assets under management.

"The addition of Michael Williams to our Board marks an important milestone in our company's growth," said CEO Ronald Bergum of Prospect. "It is a tremendous privilege and opportunity to be able to add an individual of Michael's caliber to the Prospect team." 

He added, "He brings a comprehensive understanding of the housing sector, the mortgage finance industry and the evolving regulatory landscape. I look forward to partnering with Michael as we continue to build a world-class organization at Prospect."

Williams became Fannie Mae’s CEO in April 2009. During his time, the government-sponsored enterprise transitioned from a $23 billion loss in the first quarter of 2009 to a profit of $5.1 billion in the second quarter of 2012. Williams left the government-sponsored enterprise earlier this year.

Prior to Fannie Mae, Williams held positions at KPMG Peak Marwick and the DuPont Company

Williams also serves on the board of Trustees at Drexel University and on the Advisory Board for its LeBow School of Business.

"Under Ron Bergum's leadership, and with the support of Sterling Partners, Prospect Mortgage possesses the resources, capabilities and talent to succeed in this new competitive landscape and to solidify its role as an industry leader," Williams said. 

He added, "I am extremely pleased to have this opportunity to once again work closely with Ron and his leadership team."