Freddie Mac has named financial-industry regulatory expert Dennis Hermonstyne Jr. senior vice president and chief compliance officer.
Hermonstyne joins the government-sponsored enterprise based in McLean, Virginia, after holding similar leadership positions at financial institutions and government agencies throughout his career, including most recently at Santander Bank, where he served as executive vice president and chief compliance officer. While at the bank, Hermonstyne was responsible for ensuring regulatory soundness of the company’s U.S. operations. Prior to joining Santander in 2017, Hermonstyne was deputy chief compliance officer at E-Trade Bank, and previously, he worked in legal roles at federal regulatory agencies, including the Board of Governors of the Federal Reserve System. He is scheduled to begin his new position on Sept. 19 and also becomes a member of Freddie Mac’s senior operating committee.
“Dennis is an accomplished compliance officer with broad experience at national and international financial services firms. He will be an excellent addition to Freddie Mac’s senior operating committee,” said CEO Michael DeVito in a press release.
During Hermonstyne’s tenure at Santander, a subsidiary of Santander Group headquartered in Boston, the bank expanded its footprint into Miami while reducing its number of branches in New England. Earlier this year, the bank announced it would exit mortgage lending and reevaluate its involvement in some commercial segments as it focuses on auto and consumer lending.
In his new role at Freddie Mac, Hermonstyne will manage the GSE’s compliance risk management program to ensure adherence to legal, regulatory and conservatorship obligations.
Recent initiatives Freddie Mac embarked upon or expanded this year include automated rent-based underwriting and more widespread acceptance of digital data for verification purposes. The company also created a new chief diversity and inclusion officer role in May.
The Federal Housing Finance Agency has faced ongoing pressure from Republican members of Congress to release both Freddie Mac and Fannie Mac from government conservatorship, which they entered in 2008.
In the first quarter, Freddie Mac reported profits of $3.8 billion, while its net worth increased to $31.7 billion.
