Fannie Mae makes it official: Frater is CEO

Fannie Mae has named Hugh Frater permanent CEO. He had held the job on an interim basis since October.

“Hugh's deep understanding of the housing and the financial services industries, broad experience, and strong leadership skills make him an ideal choice to lead Fannie Mae,” Jonathan Plutzik, Fannie Mae’s chairman, said in a news release Wednesday announcing the decision. The move took effect Tuesday.

Frater served as chairman of Berkadia Commercial Mortgage from 2014 to 2015 and was that company’s CEO from 2010 to 2014. Frater is also chairman of Vereit, a Phoenix real estate investment trust, and remains on Fannie’s board.

Frater succeeds Timothy Mayopoulos, who retired in October after leading the government-sponsored enterprise since 2012.

Frater faces a sweeping plan in Congress to reform the GSE system. Sen. Mike Crapo, R-Idaho, has proposed converting Fannie Mae and Freddie Mac into private mortgage guarantors. The plan likely faces resistance in a divided Congress, but many elected officials agree that the current conservatorship framework for the GSEs is unsustainable.

Frater was named CEO of Fannie Mae only a week after Freddie Mac named its new CEO, David Brickman.