Wells Fargo Vet Lands on Fannie Mae's Board

May 20, 2016, 10:49 a.m. EDT 1 Min Read

Michael J. Heid, president of Capital Markets, Finance, and Administration for Wells Fargo & Co., speaks during a news conference with Henry Paulson, secretary of the U.S. Treasury, (not pictured), in Washington, D.C., U.S., on Wednesday, Oct. 10, 2007. Paulson assembled a group of mortgage providers, counselors, investors and industry organizations to seek ways to help Americans caught in the subprime lending crisis keep their homes. Photographer: Jay Mallin/Bloomberg News

Former Wells Fargo executive Mike Heid was voted onto Fannie Mae's board of directors Wednesday.

Heid, 59, retired from Wells Fargo last October and formally left the company in January. He served as president of the bank's mortgage banking division from 2011 until last September.

Other positions Heid held at Wells Fargo include chief financial officer and head of loan servicing. Heid had been employed by Wells Fargo and its predecessors since 1988.

Fannie Mae noted in a filing with the Securities and Exchange Commission that its board has yet to decide which committees Heid will sit on.

The government-sponsored enterprise also addressed concerns related to Heid's potential conflict of interest in the filing. Wells Fargo was Fannie Mae's largest single-family customer in 2015, with $63.7 billion in loan deliveries for 13% of the GSE's total single-family business volume.

"While no part of Mr. Heid's compensation from Wells Fargo in 2015 was tied specifically to Wells Fargo's business with Fannie Mae, the business activities between the companies may have had an indirect impact on his compensation," Fannie Mae said in the filing. Fannie Mae added that Heid agreed to recuse himself from discussions or actions on matters related to Wells Fargo.

Heid still holds stock in Wells Fargo, including restricted stock units and performance share awards that will vest in 2017 and 2018. The amount in shares of Wells Fargo that he receives will be decided based upon the bank's performance over a three-year period.