The Securities and Exchange Commission has settled with Thomas Lund, the former head of Fannie Mae's single-family lending unit, for $10,000, according to news reports. Fannie's former Chief Risk Officer Enrico Dallavecchia has also agreed to pay $25,000 to settle charges.
The SEC had charged Lund and Dallavecchia of helping misguide investors to the extent of the corporation's involvement with subprime and alt-A home loans.
The two have now agreed to cooperate in the SEC's ongoing case against former Fannie Mae CEO Daniel Mudd.
The Wall Street Journal reports that the parties agreed to the deal "without conceding the strengths or weaknesses of their respective claims and defenses," the agreement specified.
The $35,000 in settlement payments will go to the U.S. Treasury, not the SEC, according to Reuters.
The terms of the agreement could also result in Fannie Mae footing the bill. Lund "will not contribute a dime from his own pocket," his attorney Michael Levy told the wire service.
The SEC did not respond to multiple requests for comment. Fannie Mae declined to comment.
