Fannie Mae's Vice Chair Jamie Gorelick to Step Down in July; CFO Timothy Howard to Become Vice Chairman

Business Wire, Jan 10, 2003

Business Editors

WASHINGTON--(BUSINESS WIRE)--Jan. 10, 2003

Fannie Mae (NYSE:FNM), the nation's largest source of financing for home mortgages, today announced that Vice Chair Jamie Gorelick has advised the company she will step down on July 1, 2003, to devote substantial time to the bipartisan national commission investigating the attacks of September 11, 2001 and to pursue other interests.

The company also announced that its Executive Vice President and Chief Financial Officer Timothy Howard, will succeed Gorelick as Vice Chair, and will be nominated to be elected to the Board of Directors at the annual meeting in May.

"Jamie Gorelick's leadership is a big reason why Fannie Mae is a great company that achieves its mission of bringing the American Dream to all Americans," said Fannie Mae's Chairman and CEO Franklin D. Raines. "Jamie's unwavering focus on our corporate responsibility has made Fannie Mae the market leader in serving minority and lower-income families, a model corporate citizen, and one of America's best places to work."

"All of us at Fannie Mae are extremely proud of Jamie's commitment and service to the company and her devotion to the American Dream business," Raines said. "But we are also proud of her lifelong devotion to public service and her commitment - and the unique contributions she will make - to helping our nation understand and learn from the events that led to the searing tragedy of September 11th. We appreciate her dedication to the company and to our nation, and we will deeply miss her presence at Fannie Mae."

Gorelick joined the company in May 1997 as Vice Chair. As a member of the Office of the Chairman, she has shared responsibility for the overall management of the company, directed its efforts to reach underserved markets and has overseen Fannie Mae's external relationships, legal and regulatory affairs.

"This has been an extremely hard decision for me because I am so proud of the role that our company plays in the housing finance system," Gorelick said.

"However, I was very honored to have been asked to serve on the bipartisan national commission that will investigate the prelude to the attacks that occurred on September 11th. This Commission has an important responsibility to our nation as we seek to understand what went wrong in order to avoid attacks of this nature in the future. I have come to the conclusion that fulfilling my duty to this Commission is not compatible with the full-time commitment required of a Vice Chair of Fannie Mae," Gorelick said.

Gorelick has a long and extensive history of public service. Prior to joining Fannie Mae, she was Deputy Attorney General of the United States, a position she assumed in March 1994. From May 1993 until she joined the Justice Department, Gorelick served as General Counsel of the Department of Defense, and from 1979 to 1980, she was Assistant to the Secretary and Counselor to the Deputy Secretary of Energy.

Gorelick co-chaired, with Senator Sam Nunn, the Advisory Committee on Critical Infrastructure Production and currently serves on the Central Intelligence Agency's National Security Advisory Panel. She also served on President George W. Bush's Review of Intelligence.

Gorelick has received many awards and commendations including the Secretary of Defense Distinguished Service Medal, the Director of Central Intelligence Award and the Department of Justice's Edmund J. Randolph Award.

Gorelick also currently serves on a number of corporate and non-profit Boards including: United Technologies Corporation; Schlumberger, Limited; The John D. and Catherine T. MacArthur Foundation; Harvard College Board of Overseers; America's Promise; and The National Park Foundation. She is listed in Fortune magazine's "Fifty Most Powerful Women in American Business" and Working Mother magazine's "Twenty-Five Most Influential Working Mothers in America."

In announcing that Howard would become Vice Chairman and Chief Financial Officer of Fannie Mae, Raines said, "Tim Howard's extraordinary record of service, experience, and financial leadership at Fannie Mae has been key to our record of low-risk growth, cutting-edge transparency and success in the American Dream business. Tim's new role as Vice Chairman of Fannie Mae will further ensure our company's success in harnessing private capital to expand the American Dream."

Howard will have responsibility for Fannie Mae's mortgage portfolio business, corporate risk management, and corporate financial management. Howard joined the company in 1982 and became Chief Financial Officer in 1990. In addition to Howard, the Office of the Chairman includes Raines, and Daniel H. Mudd, Vice Chairman and Chief Operating Officer.

Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation's largest source of financing for home mortgages.

Fannie Mae is working to shrink the nation's "homeownership gaps" through a $2 trillion "American Dream Commitment" to increase homeownership rates and serve 18 million targeted American families by the end of the decade. Since 1968, Fannie Mae has provided over $4 trillion of mortgage financing for 47 million families.

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