Fannie Mae Foundation

Fannie Mae Foundation to close, new charitable office to be created Email Share Share Tweet Print Order Reprints IN THIS ARTICLE Christina McHenry Person Stacey Stewart Person By Neil Adler – Staff Reporter Feb 23, 2007, 12:20pm EST Updated Feb 23, 2007, 12:38pm EST The Fannie Mae Foundation, which since 1979 has spent more than $1 billion to increase the supply of affordable homes nationwide and improve the quality of life in D.C., is shutting down. The foundation's sole funder, D.C.-based mortgage financing giant Fannie Mae, is consolidating its philanthropic efforts into a new office of community and charitable giving. The new office will be part of Fannie Mae, while the foundation was a separate entity. The foundation will close down the bulk of its operations by April 30, and at that time the majority of its 60-person staff will be laid off. Fannie Mae spokeswoman Christina McHenry says some of these folks may end up working for the new office. How many people will staff the new office hasn't been determined. Effective Feb. 23, Stacey Stewart, who led the foundation as its president and CEO, has joined Fannie Mae as a senior vice president to lead the new office. Peter Beard, the foundation's senior vice president of communications, strategy and information, has been named executive director to oversee the foundation's wind-down activities. Washington Business Journal reported in May 2006 that the foundation, consistently one of the area's most generous corporate philanthropies, was running out of money, hurt by Fannie Mae's roughly $10 billion earnings restatement. In the past 10 years Fannie Mae had pumped nearly $764 million into the foundation, mostly in the form of corporate stock. But Fannie Mae's stock has been hurt since news of its accounting troubles surfaced in the fall of 2004, squeezing the foundation's finances and casting into doubt its ability to remain one of the region's major corporate givers. The new office will direct its support toward three areas: Building thriving neighborhoods in D.C. through investments in housing, education and homelessness. Addressing the nation's housing challenges through housing and community development initiatives. Advancing efforts to end homelessness in America. "This effort is part of the overall re-evaluation and restructuring the company is undertaking, and embraces our core principles of service, reliability and value," says Fannie Mae President and CEO Daniel Mudd in a statement. For 2007, philanthropic grants and projects will be funded through a combination of the foundation and company resources as the foundation begins to close down. Over the past five years, Fannie Mae (NYSE: FNM) and the foundation have contributed more than $100 million to organizations and initiatives in D.C., and company officials say they expect that pace of contributions to continue. Establishing the new office allows Fannie Mae to "speak with one voice," McHenry says. "We will create more comprehensive partnerships and ... grow our commitment to the District." Fannie Mae will release more additional information on specific grants and programs in the coming months.