While all those technologies serve a purpose, I believe the application of them can be far more targeted to help launch the company to a different place. In this video, Kimberly Johnson, executive vice president and chief operating officer discusses how Fannie Mae uses a suite of AWS solutions, from serverless . This model consists of the business owners, product managers, and technologists working together on teams in an agile methodology to deliver results in a more reliable and faster fashion. His career at Fannie Mae spanned 34 years. In June, HousingWire examined the executive-level brain drain at Fannie Mae in recent years. Being able to partner and drive energy as an affordability play to make better mortgages all around has been incredible for Fannie Mae. Thats certainly true in Mellet Browns case. If companies can figure out how to connect the people to the work, all sorts of avenues will open up. We made the Collateral Underwriter available to all of our lenders, which allows them to see the values of these properties before they put their loans in. Kimberly Johnson: The COO role that Tim Mayopoulos put together for me includes an interesting combination of responsibilities, such as overseeing Fannie Maes technology, operations, innovation, data, and strategic execution. What ChatGPT And Generative AI Mean For Your Business? ), who introduced the 2015 legislation with-then-Sen. David Vitter (R-La. Working at the center of the housing markets collapse and helping the rebuild gave Johnson a unique viewpoint on risk mitigation that Lilly is likely hoping to co-opt. Feb 2 2023. This realization also brings in fresh ideas around where things are going. Inflation is high, so why arent mortgage rates higher? Officer of Federal National Mortgage Association, the total compensation of Mr Hayward at Federal National Mortgage Association is $2,778,141. Ultimately, it comes down to looking for individuals who are ambitious, courageous, and willing to take some risks, which are all learnable aspects. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. Kimberly H. Johnson is Fannie Mae's Executive Vice President and Chief Operating Officer (COO), reporting to the President. FDA has new draft guidance for drugmakers pursuing wet AMD, an eye degeneration disease that causes a loss of vision. In 2019, the Treasury began allowing the government-sponsored enterprises to retain a combined $45 billion in capital, $25 billion for Fannie Mae and $20 billion for Freddie Mac. Former employees say the bench is becoming thin. Instead, innovation must be a major part of the companys fabric. The COO role that Tim Mayopoulos put together for me includes an interesting combination of responsibilities, such as overseeing Fannie Maes technology, operations, innovation, data, and strategic execution. Johnson holds a B.A. Noelle Lipscomb, Fannie Maes internal audit vice president, spent 17 years at the enterprise before joining Homepoint in April as its chief audit executive. The company also offers a variety of sophisticated investment planning and guidance tools. That said, we are looking to bring people together to collaborate in a different way. We recently launched a digital operating model with our partners in our single-family business, which represents a terrific way of doing software development. Do you have a leader over the disciplines that you mentioned, or do most people span a diverse array of topics the way you do? 1)Retention Award Terms - This Award is an incentive for you to remain employed by Fannie Mae in your current position and division, or a position and division determined by Fannie Mae through at least December 1, 2022. To take this a step further, we are looking at ways to bring that collaboration across all areas of our tech staff. She is responsible for leading technology, data, enterprise models, operations, the enterprise program management office and resiliency. "Operations and technology are essential to enabling our strategic priorities," says Rob Sharps. executive vice president and chief operating officer. His latest book isImplementing World Class IT Strategy. Freddie announced in September that former CEO Donald Layton would retire in the second half of 2019 and that David Brickman, then the head of the multifamily business, was being promoted to president. Words cant bring Christina Aguilera down but frown lines can. In my beginning years with the firm, I was responsible for trading desks, generating revenue, and for our credit guarantee business. Congress capped compensation for the CEOs of the companies at $600,000 in 2015, after former FHFA Director Mel Watt tried to give each of the executives a $4 million pay package to keep them from leaving. Ms. Johnson served in Fannie Mae's Multifamily business as Senior Vice President for loans, securities, credit pricing and modeling, and as Vice President in our Capital Markets group with . If we can look past the present into a more predictive analysis, there are many aspects that can be done differently. High: How does your organization get involved in the innovation within the company? from 8 AM - 9 PM ET. All rights reserved. Prior to her 15-year stint at Fannie, Johnson worked for nearly six years as a director of fixed income sales at Credit Suisse and before as an equity trader at D.E. The company then announced this month that Layton would step down July 1, when Brickman would become the next CEO. The company operates through two segments, Single-Family and Multifamily. With this opportunity, we have to be resilient, secure, and we must ensure that we help the industry advance so that costs and risk are reduced for everyone. This mix serves as a nice way to string together the full array of the functionality that we need to enable the business. She serves as a board member for Eli Lilly and many nonprofits. Johnson: While we have had COOs at Fannie Mae, this was a different configuration of responsibilities. Because of this, I would love to see more effort around building the pipeline throughout career levels, rather than exclusively at the beginning. I had a terrific discussion at the RSA Conference earlier this year because there were many questions surrounding the lack of women in cybersecurity. Fannie Mae has a tremendous amount of data, which provides us with all sorts of opportunities to analyze the dynamics that we are seeing in the day-to-day changes in the marketplace. However, over the last decade, we have increased our focus on cyber and information security, and we have been looking extensively at our data and operational risk. Swoop president Scott Rines called it a one plus one equals three deal. She describes her journey and the path to innovation in this interview. Kimberly brings a strong background in technology, governance and global risk management strategy, as well as significant financial experience, CEO David Ricks said in a statement. Bioscience & Technology Business CenterThe University of KansasLawrence, Kansas. Because of this, the CRO role gave me excellent exposure to what was emerging throughout that time. Andrew Bon Salle, one of Fannie Maes most senior leaders and its head of single-family, left at the end of 2020. Fannie Mae is keenly aware of the risk of executive attrition due to its sub-par compensation levels. Federal National Mortgage Association was founded in 1938 and is headquartered in Washington, the District of Columbia. Following the financial crisis, Congress passed my bipartisan bill to cap pay raises for executives at Fannie Mae and Freddie Mac. Ultimately, it all comes back to people as everything we do is done through people. Many people wonder how it is possible to make the leap from CRO to COO because of all the technology aspects that come with it. While patients were previously required to obtain mifepristone a pill used in combination with another medicine to end early pregnancies in a medical setting, the FDA issued a policy change in January allowing certified pharmacies to distribute it. In Fannies case, that meant appointing a separate person to take on the role of president. As a result of FHFAs approval, Freddie Mac now provides a total of $3.85 million in compensation for the same set of CEO responsibilities for which it previously paid $600,000.. As a result, the IG found, Fannie is paying $4.2 million to two executives for carrying out the same duties the former CEO used to perform for $600,000, while Freddie is paying $3.85 million for. The FHFA also said that while Fannies board plans to keep the CEO and president roles separate, Freddie plans to eliminate the president position once a new CEO is installed this summer. Unlock this article along with other benefits by subscribing to one of our paid plans. Since collateral is one of the more important parts of our lending strategy, it became vital for us to get great information on the topic. High: You are currently one of the few female COOs, especially in large companies similar to yours. Fifteen months, a pandemic and a new presidential administration later, a White House budget document suggests there is little desire to end the current arrangement. Former employees who spoke to HousingWire describe a stifling environment, which they attributed to FHFAs conservatorship, and a bureaucratic regime that is anti-innovation. Was there a predecessor with this same job description, or were these a set of responsibilities that was brought together for the first time in the role created for you? How did your role as CRO lend to your new focus on innovation? T. Rowe Price's disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. The power of data with Mike Simonsen at Gathering of Eagles, Eric Lapin on how consumer-controlled data can change lending, acknowledged that there were issues with the policy, GSEs to retain much more of their earnings, Clear Capital launches UDC to support appraisal modernization. By getting the most out of the large amount of data we have, we can come up with new insights and manage our insurance business in an innovative and safer way. As a result, we have gotten some terrific seed ideas that we are looking to bring into production. Kimberly H. Johnson is Chief Operating Officer, . Save my name, email, and website in this browser for the next time I comment. Could you provide some examples of Fannie Maes innovation activities? document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Given how high inflation is right now, why arent mortgage rates even higher? 2006-2023 HW Media, LLC. Christina Aguilera joins Merz Aesthetics' 'Beauty on Your Terms' campaign for Botox rival Xeomin. If companies can figure out how to connect the people to the work, all sorts of avenues will open up. This marks a transition to moving all the risk management upstream to the beginning of the process, rather than the end. Another trend I am particularly keen on is the green financing space. Even under conservatorship, many stayed because they felt they could have a positive impact on the health and efficiency of the housing market. Fannie Mae the common name of the Federal National Mortgage Associationis using Amazon Web Services (AWS) to improve the mortgage process and advance greater equity in housing. Kimberly Johnson is 47, she's been the Chief Operating Officer and Executive Vice President of Federal National Mortgage Association since 2018. Aurora extends the Better.com merger deadline once again, Real estate agents wonder if inventory levels will ever return to normal. Moving the Housing Market Forward. The estimated base pay is $74,525 per year. I do not believe you can start at the beginning of the pipeline and build it over time, but instead, you need to build the pipeline at every stage along the way. We have a great deal of activity going on in terms of modifying our digital strategy, and we wanted to make sure that we put together all the necessary pieces to accelerate those efforts. Nearly two months after the FDA opened the door for certain pharmacies to dispense abortion pills, Walgreens has said it will not do so in several states where Republican attorneys general have opposed, according to a Politico report. However, I have been working for longer than twenty years, and I can confidently say that the twenty-year strategy does not seem to work. Ms. Johnson is responsible for leading the company's digital. Coming out of the housing crisis we put an emphasis on managing our credit and market risk, all of which are consistently important. That said, if this digitization is not in service of a business outcome, it lessens the potential impact. We now see ourselves as the centerpiece of the entire ecosystem around housing, which gives us a different sense of responsibility, Johnson said in an interview with Forbes in 2018. FHFA subsequently told Freddie to title the new position president., FHFA approved creation of the position of President with the understanding that the individual in that position would serve as the understudy to the CEO and execute only those responsibilities previously executed by the CEO and now delegated to him for a one-year period, the IG reported. The Federal Housing Finance Agency acted to circumvent a congressionally mandated limit of $600,000 on CEO compensation at Fannie Mae and Freddie Mac when it approved plans last year to pay top executives millions of dollars, according to two new reports from the FHFA inspector general. Watt replied that the plan strikes us as being very reasonable., The board refined the plan to designate a senior executive to succeed the CEO after holding a new Deputy CEO position for a year, during which he would be mentored by the outgoing CEO. These responsibilities facilitated my jumps to CCO, CRO, and now COO. The green concept as a driver of business means that we can find affordability in housing in a wide variety of ways, which is inspiring. A spokesperson for the company said that such changes are a natural part of corporate life and Fannie Mae is no exception. Fannie Mae has recognized the importance of environmentally conscious products, and in 2015, we launched some of our green financing of multi-family bonds. She also led Fannie Mae's digital transformation, establishing a four-year enterprise modernization plan and an operational roadmap for redesigning business processes and reengineering core technology. Fannie Mae Corporation employees with the job title Senior Business Analyst make the most with an average . In a transition plan given to Watt in May 2018, Freddies board said it had narrowed its search for the next potential CEO to two senior executives, proposing that one of them be appointed as Vice-CEO. Like Fannies transition plan, the Freddie plan also said the statutory cap hindered its ability to recruit qualified candidates. It's the latest in a string of high-profile executive departures at the GSE. Then theres the attitude toward Fannie Maes customers, which some perceive as overly dismissive. As COO, Kimberly is responsible for overseeing the company's technology, operations, innovation, data, and strategic execution functions. I began my career working at a hedge fund, and I later moved into an investment bank. one-time use only and expires after 24 hours. This mix serves as a nice way to string together the full array of the functionality that we need to enable the business. Johnson: Following five years at the head of the risk seat, I now spend more time thinking about how to articulate a risk tolerance. I learned this at multiple places, including the derivative space, hedge funds, investment banks, and even in risk. Kimberly Johnson COO of Fannie Mae Fortune 100 | 362 Kimberly Johnson , COO of Fannie Mae 362: In this interview, Peter High speaks with Kimberly Jo. Please note the magic link is Johnson: Since the housing crisis, the company has been working towards acting in a different role in the housing finance industry. Besides the compensation limits which cap base salary at $600,000 executives may be looking for the exits simply to escape working under conservatorship. As for trial design, FDA recommends randomized, parallel-group, double-masked trials in which the treatment group either shows superiority to the placebo group, or non-inferiority to Roches Lucentis or Regenerons Eylea. Peter High: Could you talk about your role as the Chief Operating Officer of Fannie Mae and the responsibilities the position entails? Devang Doshi with AGNC Investment Corp will assume the role of senior vice president of capital markets, according to those familiar with the matter. The average Fannie Mae salary ranges from approximately $50,466 per year for Business Operations Manager to $196,000 per year for Director of Strategy. It securitizes mortgage loans originated by lenders into Fannie Mae mortgage-backed securities (Fannie Mae MBS). HW Media connects and informs decision makers across the housing economy. Can you reflect on how the organization has changed across your tenure, and how you see the company expanding or growing?