OFHEO Chief Armando Falcon Is Stepping Down

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He heads the powerful regulatory agency which oversees Fannie Mae, Freddie Mac
RISMEDIA, April 7 ? Armando Falcon is stepping down as director of the Office of Federal Housing Enterprise Oversight (OFHEO) just months after he was thrown in the public spotlight as the head of the powerful regulatory agency which oversees Fannie Mae and other government sponsored enterprises.

Falcon said he will “explore new career options” after leading the agency “through a very challenging period,” according to a letter he sent to President Bush on April 5.

His resignation becomes effective on May 20, 2005.

He has been in the post for over five years.

“I am proud of OFHEO’s achievements during my tenure. The agency has successfully dealt with serious problems at two of the largest financial institutions in the world,” Falcon says. “We did so in a manner that avoided disruption in our financial system, while allowing both companies to continue fulfilling their vital public mission.”

On Wednesday, Nicolas P. Retsinas, director of Harvard’s Joint Center of Housing Studies, confirmed in an interview that Falcon has been in the spotlight in the past several months as Congressional hearings were held on accounting practices at Fannie Mae.

“I think his announced departure further emphasizes the need to revisit the regulatory apparatus for these important organizations,” Retsinas said, adding that the burden falls upon the president and Congress.

“OFHEO will remain in place,” Retsinas says. “They have a very able staff.”

In a statement released this week House Financial Services Committee Chairman Michael G. Oxley (OH) said that,?OFHEO Director Armando Falcon has done a commendable job under difficult circumstances.”

?Stephen Blumenthal, who will become acting director, is knowledgeable, effective, and capable,” Oxley added. “He has the ability to lead OFHEO as we in Congress continue our efforts to build a new regulator to oversee the GSEs.?

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