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After several months of searching, Freddie Mac has found a new CEO, announcing on Tuesday the hiring of former PNC Financial Services executive Diana Reid.
The government-sponsored enterprise (GSE) had been without a permanent CEO since March, when Michael DeVito retired after three years on the job. Michael Hutchins took over the role on an interim basis at that time and will remain with Freddie Mac as its president.
Diana Reid, Freddie Mac’s new CEO.
Reid has spent more than 40 years in the banking, real estate, capital markets and affordable housing spaces. She most recently was an independent director and adviser for several organizations and was with PNC Financial for 12 years, helping to lead its real estate business through the financial crisis of the late 2000s. Reid will also be a member of Freddie Mac’s board of directors.
“I look forward to working with the Board, management and my colleagues at Freddie Mac to continue and expand the company’s contributions in providing liquidity, stability and affordability for housing in communities across the country, and to ensure the company’s safety and soundness for the next generation,” Reid said in a statement.
“Diana’s proven track record and vast experience in housing finance, real estate and capital markets make her an excellent choice to further Freddie Mac’s mission-driven work,” said Lance Drummond, the non-executive chair of the company’s board of directors. “I have the utmost confidence that she is the right person to take Freddie Mac into the future.”
Prior to joining PNC, Reid founded Beekman Advisors, where she worked with real estate finance executives and boards on strategic advice and the execution of mergers and acquisitions. And she spent nearly 20 years at Credit Suisse First Boston, where she gained experience in mortgage trading, debt capital markets and financial institutions advisory roles.
Freddie Mac reported net income of $2.8 billion in its second-quarter 2024 earnings report. It purchased 257,000 mortgages from April through June, with 53% of them to low- and moderate-income borrowers.
The GSE also announced a controversial pilot program earlier this year to purchase up to $2.5 billion in closed-end second mortgages. Freddie executives have said the program would allow U.S. homeowners to unlock equity without refinancing into new loans with higher interest rates. The plan received criticism from industry groups such as the U.S. Mortgage Insurers and the Housing Policy Council.
Freddie Mac’s regulator, the Federal Housing Finance Agency (FHFA), issued a statement Tuesday on Reid’s appointment.
“I am delighted that Freddie Mac has selected Diana Reid as its next CEO,“ FHFA Director Sandra Thompson said. “Diana brings with her decades of experience in mortgage banking and capital markets, as well as a proven track record of executive leadership.
The Community Home Lenders of America (CHLA) also voiced its support for Reid.
“CHLA commends Diana Reid for being appointed as CEO of Freddie Mac,“ CHLA executive director Scott Olson said in a statement. “We look forward to collaborating with her to expand opportunities for affordable homeownership, particularly for first-time and low- to moderate-income borrowers.”
