Swad Is Fannie Mae's New CFO, Blakely Stays as Exec Vice President

Former AOL executive Stephen M. Swad has become the new chief financial officer at mortgage finance giant Fannie Mae, the company said Wednesday.

Swad's succession as finance chief, replacing Robert Blakely, had been planned for some time. It took effect on Aug. 17, Fannie Mae said in a regulatory filing. Company officials have said that Blakely - who himself came from outside in November 2005 to direct the untangling of Fannie Mae's accounting following a $6.3 billion scandal - had largely completed that task.

Fannie Mae said Blakely stepped down as its chief financial officer last Friday but remains an executive vice president.

The government-sponsored company, which is the largest U.S. buyer and guarantor of home mortgages, marked progress toward catching up on its financial reporting when it released 2006 earnings last week. Fannie Mae reported that its profit dropped 36% last year and said it expects increased credit losses this year from the turbulence in the mortgage market.

The Washington-based company has been remaking itself as it recovers from the accounting scandal that came to light in September 2004. The chief financial officer at the time, Timothy Howard, was forced out in December of that year along with then-chief executive Franklin Raines.

Swad, 46 years old, is a former executive vice president and CFO of Internet company AOL. He is a certified public accountant and previously was a partner at accounting firm KPMG as well as deputy chief accountant at the Securities and Exchange Commission.