Fannie Mae is naming banking industry veteran Susan McFarland as its chief financial officer.
McFarland takes over for deputy CFO David Hisey, who assumed the responsibilities of CFO in December 2010 when David Johnson resigned the post. Hisey will stay on as deputy CFO.
McFarland, 50, worked most recently at Capital One Financial Corp. She was executive vice president for finance and the company's top accountant.
She will also be an executive vice president at Fannie Mae, where she starts on July 11. McFarland will serve on the firm's executive committee and will report to President and CEO Michael Williams.
The government-controlled mortgage company buys home loans from lenders, packaging them into bonds that are guaranteed against losses. Fannie Mae and sister company Freddie Mac are necessary for the U.S. housing finance system to function. Without their guarantees, investors would buy fewer mortgage bonds, and interest rates would skyrocket.
The government took over the companies in September 2008 after massive losses on risky mortgage bonds threatened to topple them.
Johnson joined the company weeks after the government takeover and resigned in November 2010. Hisey assumed the responsibilities of CFO while Fannie Mae searched for a permanent replacement for Johnson.
Hisey also served as CFO from August to November 2008, a transformative period for the company. That July, Congress agreed to let Treasury support Fannie and Freddie using taxpayer money. Then-treasury Secretary Henry Paulson took control of the companies in September.
Johnson, also a veteran of the financial industry, joined Fannie Mae just weeks after the government put Fannie and Freddie into conservatorship,
The companies remain in conservatorship, a legal arrangement under which the companies' government regulator controls their financial decisions.
Fannie's has been the most expensive of any government bailout. It has received nearly $100 billion from the Treasury to stay afloat.
Fannie Mae and Freddie Mac, based in McLean, Virginia, own or guarantee about half of all mortgages in the U.S., or nearly 31 million home loans worth more than $5 trillion. Along with other federal agencies, they backed nearly 90 percent of new mortgages over the past year.
© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.