The report is very long and full of instances that show lobbyists under Donilon's charge fought the OFHEO investigation and even tried to counter, pushing an investigation into OFHEO. The report also cites a 2003 email from then COO (and later CEO) Daniel Mudd to Donilon, exposing what OFHEO calls "efforts to generate interagency conflict":
I spoke to [a Treasury Department official], he had agreed to talk to [the SEC] on "what to do if OFHEO was not falling in line" already ([another Treasury official] had already bent his ear about OFHEO obstructionism)…promised me he'd check in to see where things were and would call [the SEC] when needed.
Donilon left Fannie Mae in 2005, before the release of the report and of course well before the conservatorship. For those of you keeping track, from 2001 to 2003, Donilon received $1,889,821 in bonuses from Fannie Mae. Now he's up for a job that would put him right in the center of White House policy-making, and vital discussions and decisions relating to the future of housing finance.
"Given that the disposition of Fannie and Freddie will be a top issue leading into the 2012 election, the White House will need to consider the perception involved in having a former top Fannie official in such a high profile position in the West Wing," says and industry insider.
It's no secret, given all the Congressional hearings following the fall of Fannie and Freddie and the ensuing government conservatorship, that Fannie Mae did not take well to government regulation. Ask any taxpayer. That's why the top management was ousted and a kinder gentler Fannie and Freddie are supposedly kowtowing to their conservators and doing their best to save the housing market.
Still, with reform of the two mortgage giants on the administration's front burner, I have to ask how someone who was a part of the old guard at Fannie Mae becomes part of the new guard at the White House without a few raised eyebrows.
I have contacted Mr. Donilon's office as well as the White House for comment. So far no responses.
Questions? Comments? RealtyCheck@cnbc.comAnd follow me on Twitter @Diana_Olick