Fannie Mae Says CEO Mayopoulos to Step Down by End of the Year

(Bloomberg) -- Fannie Mae Chief Executive Officer Timothy Mayopoulos plans to step down by the end of the year, creating a potential vacancy atop a government-controlled company that is central to the U.S. housing system.

While Fannie Mae didn’t name a replacement in its statement Monday, it did say Mayopoulos will work closely with the company’s board to ensure a “smooth transition and succession.” In announcing that the board will conduct a search for a successor, the mortgage-finance giant said Chief Financial Officer David Benson had been promoted to president.

Mayopoulos has led Washington-based Fannie Mae since 2012, and lawmakers have grappled with what to do with the company and smaller rival Freddie Mac throughout his tenure. The government took control of both companies as the U.S. mortgage market collapsed in 2008, eventually injecting them with $187.5 billion to keep them afloat in the wake of the financial crisis. Both have returned to profitability and are required to turn over almost all of their profits to the Treasury Department under the terms of their bailout agreements.