Freddie Mac Makes Major Changes in Management after Conservatorship

Freddie Mac Makes Major Changes in Management after Conservatorship
Published: October 06, 2008

By Anuradha Kher, Online News Editor

McLean, Va.--Freddie Mac has made changes in its senior management and organization that it hopes will enable the company to stabilize the housing finance system and position it to take advantage of business opportunities in the market over the longer term. The changes are effective immediately.

The company's three business lines – Single-Family Credit Guarantee, headed by senior Vice President Donald J. Bisenius; Multifamily Sourcing, headed by Senior Vice President Michael C. May; and Investments and Capital Markets, headed by Senior Vice President Gary D. Kain – will report directly to Freddie Mac CEO David M. Moffett. This new structure effectively eliminates the need for a chief business officer. As a result, Patricia L. Cook, who had held that position, will be leaving the company.

The company also named Senior Vice President and Corporate Controller David Kellermann as acting chief financial officer, reporting directly to Moffett, while it undertakes an external search to fill the position on a permanent basis. Chief Financial Officer Anthony S. ("Buddy") Piszel is departing the firm.

All of the company's credit management activities will be consolidated under a single new position, chief credit officer, reporting directly to Moffett. Raymond G. Romano, senior vice president, Credit Risk Oversight, will be the acting chief credit officer, reporting directly to Moffett, while the company conducts an external search.

Since Freddie Mac views the fulfillment and definition of its mission as a matter to be conducted in close consultation with its regulator and conservator, the Federal Housing Finance Agency (FHFA), the company's mission division, headed by Senior Vice President Robert Y. Tsien, will move into the company's compliance & regulatory affairs division, headed by Senior Vice President Jerry Weiss.

As previously announced, Freddie Mac has ceased all lobbying and political activity. As a result, Timothy J. McBride, senior vice president, government & industry relations, is also leaving the company.

"I am excited about the changes we're making today, and believe they position us to best achieve the mission and goals of the company over the long term," Moffett said in a statement. "I also want to thank the officers who are leaving Freddie Mac for their service to the company. I commend them for the many accomplishments and achievements Freddie Mac made under their leadership and wish them all the best in their future endeavors."