Fannie Mae replaces chair of board of directors

Fannie Mae, the US government-backed financial institution that provides liquidity to the US mortgage markets by buying mortgages from lenders, has named Sheila Bair to succeed Jonathan Plutzik as chair of the board of directors.

Plutzik will remain on the board of directors. He joined the board in the aftermath of the 2008 financial crisis and served on the risk policy and capital committee, the strategic initiatives and technology committee, the compensation committee, and vice chair of the board prior to being named chair in 2018.

Bair joined the Fannie Mae board of directors in August 2019. During her tenure, she has served as a member of the community responsibility & sustainability committee, the nominating and corporate governance committee, and the risk policy and capital committee.

Hugh Frater, chief executive officer, said: "Fannie Mae appreciates Jonathan's strong leadership over the last eleven years. He played an integral role in our response to the Coronavirus pandemic and has helped Fannie Mae improve its risk management capabilities, its governance, and meet important milestones as we work to exit conservatorship.

"Sheila is the perfect person to lead the Board and help guide the company as we continue to transition out of government control. She will help chart a course forward for the company while making sure we never forget our mission to support mortgage financing in a safe and sound manner."

Plutzik commented: "I am pleased to announce Sheila Bair as the new Chair of Fannie Mae's Board of Directors. Sheila's deep well of experience will provide strong leadership as Fannie Mae works with the Federal Housing Finance Agency (FHFA) to exit conservatorship while simultaneously fulfilling our mission to provide access to safe, affordable mortgage financing. I note with pride the progress Fannie has made in all aspects of its operations since the last financial crisis and commend my fellow directors and Director Calabria for their unwavering commitment to making Fannie Mae a truly outstanding housing finance company."

Bair added: "I am pleased and honored to be selected as Chair of this outstanding board and grateful to Jonathan Plutzik for his leadership. This is a pivotal time for Fannie Mae, and I look forward to working collaboratively with my colleagues in service of our ultimate client, the public."