Fannie Mae Reaches Agreement with OFHEO

WASHINGTON – Fannie Mae today announced it has entered into an agreement with the Office of Federal Housing Enterprise Oversight (OFHEO) to take a series of steps with respect to its internal controls, organization and staffing, governance, accounting, and capital. Pursuant to the agreement, Fannie Mae will achieve and maintain a capital surplus target of 30 percent within the next 270 days and protect its capital surplus of 18 percent as of August 31, 2004.

“Fannie Mae’s Board of Directors is pleased to have worked cooperatively with the Director and staff of OFHEO in reaching this agreement expeditiously,” said Ann McLaughlin Korologos, Presiding Director of Fannie Mae’s Board. “I would like to thank the Director and his staff for their accessibility and hard work. These are significant steps and the Board is fully committed to their timely implementation. The Board and the company have been working together to address the issues raised by OFHEO and will work closely to implement the agreement’s provisions.”