Fannie Mae announced Friday it would shut down its foundation and replace it with a charitable giving office within the company.
The mortgage lender made the move as part of an overall corporate restructuring, director of media relations Christina McHenry told The Examiner.
The new move will save Fannie Mae money by avoiding duplicate administrative costs, and help the organization stay streamlined and form more partnerships, McHenry said, though she would not say how much money the organization will save.
McHenry said the Office of Community and Charitable Giving plans to be transparent about its work, and will disclose the names and dollar amounts of recipient organizations both on its web site and in its annual report. Fannie Mae has come under fire for a lack of transparency in the past.
“All we can do is the things we’ve said we’re going to do, and others will have to be the judge at how successful we are at this,” McHenry said.
The U.S. Senate Finance Committee has launched an investigation of Fannie Mae’s foundation to see whether it has engaged in lobbying practices inappropriate for nonprofits.
The mortgage lender also recently had to restate its earnings, after overstating its profits by $6.3 billion. The new office plans to give at least as much money as the foundation did to organizations in D.C. and nationwide, and hopes to increase that amount in the future, McHenry said.
It will focus its efforts on housing, community development and homelessness, she said, and maintain a special focus on the D.C. area.
The foundation’s former CEO, Stacey D. Stewart, will head up the new office. About 60 people work at the foundation, and their jobs will be eliminated when it closes its doors April 30, McHenry said, though they will be eligible to apply for positions in the new office.
