Freddie Mac CEO Michael DeVito recently told board leaders
at the government-sponsored enterprise (GSE) he has helmed since June 2021 that
he intends to retire during the first quarter of 2024.
DeVito will be leaving after less than three years at the
helm for Freddie Mac, having stepped into the role nearly six months following
David Brickman’s departure, during which time Mark Grier served as interim CEO.
The Freddie Mac Board of Directors issued a statement
conveying their appreciation for DeVito’s leadership and stating they anticipate
a smooth transition as they begin searching for a successor.
“We are very saddened to hear of Michael’s departure, and
the board expresses its profound appreciation for his strong leadership and his
many other contributions to Freddie Mac,” Freddie Mac’s Board of Directors
Chair Sara Mathew said in a statement. “Above all, Michael demonstrated a true
passion for the company’s mission and drove meaningful progress in making home
possible for homebuyers and renters in communities across the nation.”
Federal Housing Finance Agency Director Sandra Thompson also
issued a statement about DeVito’s departure, adding she would work closely with
Freddie Mac’s board to help identify a replacement.
“Michael DeVito has brought more than 30 years of
experience and leadership in mortgage finance to Freddie Mac,” Thompson
said. “I am grateful for his commitment and dedication, which has put the
company in a stronger financial position while still providing broad access to
credit for all creditworthy borrowers. I am deeply grateful for his
service and wish him well in his future endeavors.”
Freddie Mac reached $3 billion in single-family mortgages in
the second quarter of 2023, and $2.9 billion in net income. These numbers
represent a year-over-year increase of 3 percent and 20 percent,
respectively.
“The second quarter saw single-family home prices stabilize,
influenced by strong demand, higher residential mortgage rates, and limited
homes for sale,” DeVito said in a statement regarding the company’s Q2
performance metrics. “Renters continue to be cost burdened as rents rose in the
face of softening multifamily property prices. Freddie Mac remained focused on
its mission and delivered a solid quarter, helping 372,000 buy, refinance, or
rent a home, the majority of them affordable to low- or moderate-income
borrowers and renters.”
Prior to joining Freddie Mac, DeVito spent 23 years at Wells
Fargo, where he served as executive vice president and head of home lending.
DeVito joined Freddie Mac at a somewhat controversial time. During
the six months between Brickman stepping down at Freddie Mac and DeVito
stepping in, then-Treasury Secretary Steven Mnuchin indicated the GSEs would
only be released from conservatorship if it could be done without jeopardizing
taxpayers or causing significant market disruption. Many industry insiders
interpreted his sentiment to mean there would be no end in sight for government
oversight of the GSEs.