Statement from Stephen B. Ashley, Chairman of the Board, Fannie Mae
March 8, 2005
Today, Fannie Mae and the Office of Federal Housing Enterprise Oversight (OFHEO) have entered into a supplemental agreement that represents the next step in Fannie Mae's cooperative effort to address issues raised by OFHEO in its ongoing review of the company and strengthen the company's corporate governance.
Over the past several months, the Fannie Mae Board and management have been in frequent and open dialogue with OFHEO on identifying and remedying issues related to the company's accounting and controls.
Today's agreement sets forth steps the company will be taking in the areas of enhancing internal financial controls and accounting policies and practices to assure they conform to GAAP, disclosure and other regulatory standards. The company also agreed to take steps to strengthen its corporate governance, including the segregation of duties between Fannie Mae's Chief Executive Officer and Chairman of the Board, and enhancing the company's compliance and ethics functions, which will report directly to the CEO and to the Board's Audit Committee.
Fannie Mae's Board and its management team, led by interim CEO Dan Mudd, are committed to working with OFHEO to carry out this agreement as we continue the process of completing the restatement and re-audit of our prior financial statements.
Source: Fannie Mae