Fannie Mae board elevates Williams to CEO spot

Fannie Mae said Monday its board of directors tapped the company's chief operating officer, Michael J. Williams, to take over as chief executive of the mortgage finance company in the wake of the previous CEO's move to the Treasury Department.

In addition to being CEO, Williams will also hold a seat on the company's board, Fannie Mae said.

As executive vice president and COO, Williams has overseen the restructuring of Fannie Mae's foreclosure-prevention and loss mitigation efforts. He also has managed Fannie Mae's reorganization and transition to conservatorship.

"Mike brings a steady hand, extensive experience and a deep understanding of the company and the housing and financial markets to his new role, and he enjoys the full confidence and support of the board," Philip A. Laskawy, Fannie Mae's chairman, said in a statement.

Last week, the White House named former Fannie Mae President and Chief Executive Herbert Allison Jr. to run the federal government's $700 billion bank rescue effort as an assistant treasury secretary.

Fannie Mae and sibling Freddie Mac were seized by federal regulators in September. Together, Fannie and Freddie own or guarantee almost 31 million home loans worth about $5.5 trillion. That's more than half of all U.S home mortgages.

Shares of Fannie Mae fell 9 cents, or 10.6 percent, to 76 cents in afternoon trading.