On Monday, Fannie Mae announced the appointment of Hugh R. Frater as its Interim CEO. Frater’s appointment will be effective on October 16, 2018, subject to final FHFA approval, Fannie Mae said in a statement. He will succeed Timothy J. Mayopoulos, who announced his intention to depart in July 2018 and will leave the company on October 15, 2018.
“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 L.J. 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.”
According to Fannie Mae, Frater has served on its Board since 2016. He has held a number of executive and management roles throughout his career and currently serves as Non-Executive Chairman of the Board of VEREIT, Inc. and as a director of ABR Reinsurance Capital Holdings Ltd. He previously led Berkadia Commercial Mortgage LLC (“Berkadia”), a national commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties.
“I have great respect for Fannie Mae and the significant role it plays in our housing system,”Frater said. “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. 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.”
Commenting on Frater's appointment, Mayopoulos said that Frater would be "an excellent complement to the strong management team at Fannie Mae."
“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,” he said.
Speaking about Mayopoulos' term at Fannie Mae, Perry said, “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. 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. 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.”