FHFA IG Launches Probe of Fannie MF Program, Top Exec Departs

Mortgage & Real Estate

Fannie Mae Monday morning confirmed to National Mortgage News that its multifamily unit is the subject of an Inspector General probe being conducted by the Federal Housing Finance Agency.

Moreover, NMN has learned that Fannie Mae’s chief risk officer in charge of multifamily mortgages, David Worley, departed from the secondary market giant Monday morning.

A spokeswoman for the GSE declined to say whether Worley’s departure is related to the IG probe.

“Fannie Mae was advised by FHFA and the Office of Inspector General that the OIG is conducting an investigation of a transaction in our Multi-Family business,” it said in a statement. “The investigation is limited in scope and we are cooperating fully with FHFA and the OIG.  Consistent with our usual practice, we placed employees on administrative leave pending the outcome of the review.”

A call to Fannie’s switchboard in Washington revealed that Worley is no longer in the company’s database. No residential phone number was available for him in the Washington area.

As the head of multifamily mortgage risk, Worley oversees underwriting standards and related areas for Fannie. According to company figures, the delinquency rates on the GSE’s MF portfolio have been declining since late last year.

A spokeswoman for the Federal Housing Finance Agency said she had no information concerning Worley and referred calls to the IG’s office, which did not return them.

Worley joined Fannie in 2005 from Senderra Capital and First City Partners. Senderra had ties to Senderra Funding, a subprime lender controlled by Goldman Sachs.

Daily Briefing | Monday, October 31, 2011

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