Ginnie Mae filling leadership void with new COO

Ginnie Mae has made its first high-level appointment under the Trump administration, naming former public housing and trade group official Joseph Gormley as executive vice president and chief operating officer.

The appointment puts Gormley in a leadership position at a government corporation within the Department of Housing and Urban Development that guarantees a multitrillion-dollar mortgage-backed securities market.

While the traditional leadership position of president at Ginnie remains unfilled and requires a nomination and confirmation process, HUD Secretary Scott Turner said in a press release that Gormley will be effectively steering the ship for now. There has been speculation that Gormley could be the Ginnie nominee.

"I am very happy to see Joe Gormley take the helm at Ginnie Mae as executive vice president and chief operating officer," Turner said. "With Ginnie Mae's central role on mortgage financing, his leadership will bring stability and strength to this segment of the housing market."

The securitizations Ginnie guarantees are a key funding vehicle for government mortgages that other entities like the Federal Housing Administration back.

"I am honored to join Ginnie Mae and contribute to its important mission," Gormley said in a press statement. "I look forward to working with the dedicated team at the agency to strengthen and enhance the role of the MBS program in serving homeowners and renters across the country."

Senior roles at HUD Gormley held previously include chief of staff to the deputy secretary. He also served as deputy assistant secretary for single-family housing at the FHA and worked for the Financial Industry Regulatory Authority and the Mortgage Bankers Association. Gormley was associate regulatory counsel for the MBA, and also served as policy lead on legal and regulatory issues at the Independent Community Bankers of America. 

He has been charged with leading Ginnie Mae's strategic initiatives, operational functions and risk-management efforts, "ensuring that the organization remains focused so that its programs are delivered efficiently, responsibly, and sustainably."

Before Gormley's appointment, Chief Risk Officer Gregory Keith had been holding down the fort in the executive suite at Ginnie. Keith, a senior vice president, has served in the role through multiple U.S. administrations dating back to 2010.

Ginnie hasn't had a permanent president since Alanna McCargo left the post in May of last year to head the Federal Home Loan Bank of San Francisco. She later resigned from that post to serve as a special advisor to the Federal Home Loan bank.

Sam Valverde, who had served as a principal EVP under McCargo, became acting president after she left. However, Valverde moved on to take a position as vice president of mission and community engagement at Freddie Mac, an influential government-related mortgage buyer.

McCargo and her predecessor, Ted Tozer, had authored a paper earlier this year warning that a reduction in Ginnie's senior managers to four from nine and an estimated 25% cut to its workforce could increase risks for the government corporation and the market it oversees.

In addition to Gormley and Keith, Ginnie's leadership team includes Chief Financial Officer Adetokunbo "Toky" Lofinmakin and Russell "Haj" Ramos, a senior vice president in the office of enterprise data and technology solutions. Both have held various roles at HUD spanning multiple U.S. administrations.