Fannie Mae (NYSE: FNM) today announced that Jacqueline K. Wagner will join the company as Senior Vice President and Chief Audit Executive, reporting directly to the Audit Committee of the Board of Directors. Wagner will succeed S. Jean Hinrichs, who joined Fannie Mae as Chief Audit Executive in June 2005.

Wagner was formerly with the American Express Company in New York, where since 2002 she served as senior vice president, chief operational risk officer and general auditor. In that role, she was responsible for the development, implementation and maintenance of a companywide operational risk framework and tools to enable management to identify, assess and manage operational risks across the business. Wagner is a Certified Internal Auditor, a Certified Public Accountant, and former Chair, Institute of Internal Auditors, Inc.

"Jacquie Wagner is an outstanding professional and a terrific successor to Jean Hinrichs, who led the rebuilding of Fannie Mae's audit function and helping the company return to timely filing with a clean SOX opinion," Mudd said. "As 2007 came to a close, Jean indicated her desire to return to private life and teaching, so we appreciate that she agreed to stay on to ensure a smooth hand-off to her successor. We will miss Jean, but the legacy of her work will live on at Fannie Mae."

"It has been a privilege to be part of building a new Fannie Mae, and every day my admiration for the company, its mission, my colleagues -- and their determination -- has grown deeper," Hinrichs said. "After a long career in financial accounting, auditing and risk management, I am looking forward to a little semi-retirement, with teaching, traveling and spending time with family and friends. I am confident that Fannie Mae's audit function is in good hands with Jacquie Wagner."

Chairman of the Board's Audit Committee, Dennis Beresford, said, "Fannie Mae's internal audit function has been rebuilt and renewed under Jean's leadership into one of corporate America's best, and the Audit Committee has appreciated her leadership, candor, and determination to get things done right. We are now looking forward to working with Jacquie Wagner as she brings a new set of perspectives and experiences to the role."

As Chief Audit Executive, Wagner will also prepare and present the annual audit plan to the Audit Committee of Fannie Mae's Board, provide periodic updates on the status and overall operation of the internal audit department, and inform and advise the Audit Committee and top management. Wagner also will play an active role in interacting with Deloitte & Touche LLP (the company's independent registered accounting firm) as well as with Fannie Mae's safety and soundness regulator, the Office of Federal Housing Enterprise Oversight (OFHEO), regarding Internal Audit's activities.

Wagner also will work with the controller, chief compliance and ethics officer and the chief risk officer to satisfy the requirements of Sarbanes- Oxley, and work in partnership with company executives to design and implement cost-effective control infrastructure and eliminate redundant or inefficient procedures where necessary.

Prior to American Express, Wagner served as general auditor at General Motors Corporation, and previously held audit positions at Phillips Petroleum Company, Chemical Bank, the Federal Home Loan Bank of Atlanta and other financial institutions. She is a graduate of Fairleigh Dickinson University in Madison, New Jersey.

"I appreciate this opportunity to lead the internal audit function at one of the nation's leading financial institutions with a critical role in the housing finance system, and a wonderful mission of supporting the nation's housing market," Wagner said.

Fannie Mae is a shareholder-owned company with a public mission. We exist to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to ensure that mortgage bankers and other lenders have enough funds to lend to home buyers at low rates. In 2008, we mark our 70th year of service to America's housing market. Our job is to help to those who house America.