Career moves

Francis Creighton, a top lobbyist for the Mortgage Bankers Association, is departing the trade group to take a job on Capital Hill, National Mortgage News has learned. A source familiar with the matter said Mr. Creighton, a vice president who is MBA's top liaison with elected officials, has accepted a chief of staff position with Rep. Chris Murphy, D-Conn. He informed the trade group of his plans last Friday. He will officially depart MBA within a few weeks. Mr. Creighton was promoted to VP in late 2006. He previously served as director of government affairs for MBA. During his career he also worked as a legislative director to Rep. Steve Israel of New York.

The Obama administration's Making Home Affordable loan modification program will not show real results until later this summer, according to a key regulator. Federal Housing Finance Agency director James Lockhart told a Congressional panel the impact of the MHA program will be delayed as the servicers register for the program and contractually agree to the program's terms and conditions. "Second, borrowers are required to submit the required documentation, be approved for a modification, and successfully perform under a three-month trial modification before the loans can be formally modified. Therefore, FHFA expects to see the results of current activities ramp up in late summer," Mr. Lockhart testified. Separately, Herbert Allison, President Obama's nominee to be Treasury assistant secretary and run the Troubled Asset Relief Program, told the Senate Banking Committee that 14 servicers are already active in the MHA program and they have sent modification offers to 100,000 homeowners. TARP is providing funds for incentive payments and to cover some of the modification costs. "There is a great deal of pressure on everyone" to get this program going, Mr. Allison said at his confirmation hearing. But he stressed it going to take time to ramp up. Mr. Allison recently served as president and chief executive of Fannie Mae.

Eric Martinez Jr. has been named chief executive of United Guaranty Corp., Greensboro, N.C., by parent company American International Group Inc., New York. In a statement, AIG said former president and CEO William V. (Billy) Nutt has left the company, but it did not disclose the reason. Mr. Martinez has worked with AIG since January 2009 in a variety of positions, including a leadership role at AIG Global Real Estate. For the past two months, he has led a comprehensive strategic review for UGC. Prior to joining AIG, Mr. Martinez was executive vice president — claims, customer care and business operations for Safeco Corp., Seattle.

Eric Martinez Jr. has been named chief executive of United Guaranty Corp., Greensboro, N.C., by parent company American International Group Inc., New York. In a statement, AIG said former president and CEO William V. (Billy) Nutt has left the company, but it did not disclose the reason. Mr. Martinez has worked with AIG since January 2009 in a variety of positions, including a leadership role at AIG Global Real Estate. For the past two months, he has led a comprehensive strategic review for UGC. Prior to joining AIG, Mr. Martinez was executive vice president — claims, customer care and business operations for Safeco Corp., Seattle.

LendingSpace, the developer of web-based loan origination software for reverse and forward mortgages, has named Jeffrey Osheka president. Mr. Osheka has over 20 years in the industry working for companies such as Lydian, Decade Systems, Ultraprise/GHR and Fidelity Mortgage Funding. As president of LendingSpace, Mr. Osheka is responsible for directing the company's current growth, with an emphasis on the rapidly expanding reverse mortgage market.

Franklin (Fritz) W. Hobbs has been named as the new non-executive chairman of GMAC Financial Services, Detroit. Mr. Hobbs is currently an advisor to One Equity Partners LLC, which manages investments and commitments for JPMorgan Chase & Co. in direct private equity transactions. Previously, he was the chief executive of Houlihan Lokey Howard & Zukin. During his career, he also held the position of chairman at UBS AG's Warburg Dillon Read unit. Prior to that, he was president and CEO of Dillon, Read & Co. Inc. Besides Mr. Hobbs, Michael A. Carpenter and Mayree C. Clark have been appointed to the GMAC board. Mr. Carpenter is chairman of Southgate Alternative Investments, while Ms. Clark is a member of the investment committee for Aetos Capital Asia, which manages the firm's $6 billion in investments in Japanese and Chinese real estate. Other members of the reconstituted board at GMAC are its CEO Alvaro G. de Molina, Cerberus appointee Stephen Feinberg, Robert T. Blakely and Kim S. Fennebresque, both of whom are appointees by the U.S. Department of the Treasury.

Erika Poethig has been named deputy assistant secretary for the Department of Housing and Urban Development's Office of Policy Development and Research. Ms. Poethig currently serves as the associate director for housing in the program on human and community development at the John D. and Catherine T. Mac Arthur Foundation, where she focuses on regional policy and practice, housing policy and research, and on the $150 million special initiative for the preservation of affordable housing. Prior to her current position, she was the assistant commissioner for policy resource and program development at the City of Chicago's Department of Housing.

Former Federal Deposit Insurance Corp. chairman L. William Seidman, who also headed the thrift bailout agency during that industry's darkest days, passed away on May 13. He was 88. During his years of public service he worked in the Ford White House as the president's assistant for economic affairs. From 1985 to 1991, Mr. Seidman served as the 14th chairman of the FDIC. Under President George H.W. Bush, Mr. Seidman was tapped to head up the newly created Resolution Trust Corp., and eventually sued the president's son, Neil Bush, for his alleged role in the collapse of Silverado Savings of Colorado. (The younger Mr. Bush eventually settled the case out of court.) According to The American Banker, Mr. Seidman was lionized for the key role he played in cleaning up the S&L industry. The newspaper noted that he was "a constant voice on regulatory matters long after his retirement."

Former Federal Deposit Insurance Corp. chairman L. William Seidman, who also headed the thrift bailout agency during that industry's darkest days, died Wednesday. He was 88. During his years of public service he worked in the Ford White House as the president's assistant for economic affairs. From 1985 to 1991, Mr. Seidman served as the 14th chairman of the FDIC. Under President George H.W. Bush, Mr. Seidman was tapped to head up the newly created Resolution Trust Corp., and eventually sued the president's son, Neil Bush, for his alleged role in the collapse of Silverado Savings of Colorado. (The younger Mr. Bush eventually settled the case out of court.) According to The American Banker, Mr. Seidman was lionized for the key role he played in cleaning up the S&L industry. The newspaper noted that he was "a constant voice on regulatory matters long after his retirement."

Jefferies Group of New York has hired Andrew Peisch as co-head of mortgage- and asset-backed securities banking and origination. Up until recently Mr. Peisch was head of structured credit products banking and origination for the Americas at Deutsche Bank.

The Senate has confirmed Ron Sims to be the deputy secretary and second in command at the Department of Housing and Urban Development. Mr. Sims is the former executive of King County, Washington, and has plenty of experience in urban affairs. Meanwhile, the HUD secretary continues to support David Stevens to be the new Federal Housing Administration commissioner. But the Senate Banking Committee is holding up his confirmation due to a RESPA lawsuit filed against his former employer -- the real estate brokerage firm Long and Foster. Stevens' supporters are hoping he will be confirmed before the Senate adjourns for the Memorial Day recess.

Sen. Richard Shelby, R-Ala., has placed on hold on the President's nominee David Stevens to be the new Federal Housing Administration commissioner as the result of a lawsuit against his former employer Long and Foster. The Senate Banking Committee approved four other Department of Housing and Urban Development nominees on Tuesday (April 28) and cleared the way for their confirmation by the full Senate. However, committee chairman Christopher Dodd, D-Conn., did not seek a vote on Mr. Steven's nomination. "Sen. Shelby agreed with chairman Dodd that this matter needs to be thoroughly examined before moving forward with a committee vote on Mr. Stevens' nomination," said a spokesman for Sen. Shelby. The class action lawsuit is understood to involve possible RESPA violations by Long and Foster, which is the largest privately owned real estate brokerage firm. Meanwhile, the committee approved the following HUD nominees: Ronald Sims to be deputy secretary, Helen R. Kanovsky to be general counsel, Peter Kovar to be assistant secretary for congressional and intergovernmental affairs, and John D. Trasvina, to be assistant secretary for fair housing and equal opportunity.

Sen. Richard Shelby, R-Ala., has placed on hold on the President's nominee David Stevens to be the new Federal Housing Administration commissioner as the result of lawsuit against his former employer Long and Foster. The Senate Banking Committee approved four other Department of Housing and Urban Development nominees on Tuesday (April 28) and cleared the way for their confirmation by the full Senate. However, committee chairman Christopher Dodd, D-Conn., did not seek a vote on Mr. Steven's nomination. "Sen. Shelby agreed with chairman Dodd that this matter needs to be thoroughly examined before moving forward with a committee vote on Mr. Stevens' nomination," said a spokesman for Sen. Shelby. The class action lawsuit is understood to involve possible RESPA violations by Long and Foster, which is the largest privately owned real estate brokerage firm. Meanwhile, the committee approved the following HUD nominees: Ronald Sims to be deputy secretary, Helen R. Kanovsky to be general counsel, Peter Kovar to be assistant secretary for congressional and intergovernmental affairs, and John D. Trasvina, to be assistant secretary for fair housing and equal opportunity.

Former chief executive David Moffett is returning to Freddie Mac to run the finance division in the wake of the apparent suicide of the company's acting chief financial officer David Kellermann.Freddie interim chief executive John Koskinen welcomed Mr. Moffett's offer to temporarily return as a consultant while Freddie searches for a permanent CFO. "He knows the company well from his time as the chief executive, and has built an impressive career in finance and accounting...with other leading public companies," Mr. Koskinen said.

Fannie Mae's new chief executive Michael Williams has recruited three bankers from outside the company to serve as his executive vice presidents in key posts. Timothy Mayopoulos from Bank of America will serve as EVP, general counsel and corporate secretary. Edward G. Watson from Citicorp will be Fannie's new EVP for operations and technology. And Kenneth J. Phelan from Wachovia Corp. will be EVP for risk management.

Fannie Mae's new chief executive Michael Williams has recruited three bankers from outside the company to serve as his executive vice presidents in key posts. Timothy Mayopoulos from Bank of America will serve as EVP, general counsel and corporate secretary. Edward G. Watson from Citicorp will be Fannie's new EVP for operations and technology. And Kenneth J. Phelan from Wachovia Corp. will be EVP for risk management. "Each of these outstanding individuals brings extensive and distinguished experience in their respective fields to the critical positions they assume at Fannie Mae," Mr. Williams said.

CitiMortgage has hired former Fannie Mae servicing executive Harold Lewis to head its Homeowner Assistance Program. He will officially join the bank-owned lender next Monday. According to an official at CitiMortgage, Mr. Lewis, while at Fannie, worked with the Obama administration to develop the GSE's new Making Home Affordable program, which is geared toward refinancing troubled as well as healthy borrowers. At Fannie he held the title of senior vice president of national servicing and was responsible for overseeing 1,400 GSE servicers.

Dallas based Mortgage Search & Acquisition said today that Chris Meyer will be joining the company as managing director of the company's new Phoenix office. Mr. Meyer has an executive recruiting background stemming 30 years, beginning in 1980 with the John Hancock Co. in Anchorage Alaska where he worked with financial planners in recruiting candidates for investment opportunities. In 1982, Mr. Meyer relocated to Phoenix to start his own firm, resulting in two decades of recruiting within the distribution technology area, targeting business owners across the U.S. within a wide spectrum of industries. He joined Arizona-based Competent Search in 2002, where he developed a mortgage banking specialty, delivering highly personalized, results driven recruiting services to Wells Fargo Home Mortgage nationwide. After successfully opening multiple states and training new recruiters for Competent Search, Mr. Meyer began focusing on the Southern California market, transitioning in excess of $800 million annually in branch acquisitions and top performers in the retail and builder sectors. MSA specializes solely within the mortgage banking and financial services industry, providing over 25 years of experience in executive recruiting and acquisition services to its national client base.

PHH Corp., Mt. Laurel, N.J., has hired John C. Sites Jr. to provide consulting services to the company and its board. Mr. Sites is a partner at Wexford Capital LP, an investment advisor that manages a series of affiliated hedge funds and private equity funds. There he focuses on Wexford's investments in mortgage-backed securities and mortgage-related enterprises. Previously, Mr. Sites served as a director of Fannie Mae and as a general partner of Daystar Special Situations Fund and Rock Creek Partners II Ltd. From 1981-1995, Mr. Sites was with Bear Stearns & Co. Inc., where he eventually became executive vice president. While at Bear Stearns, Mr. Sites established the firm's mortgage and asset-backed department. PHH chairman A.B. Krongard stated, "We are very pleased that PHH has been able to establish this important relationship with John Sites. We believe that John's extensive mortgage industry and other experience will prove extremely valuable to the board and the company."

President Barack Obama has nominated Michael Barr to be Treasury assistant secretary for financial institutions where he will probably play an important role in guiding reform of the mortgage finance system. A professor of law at Michigan University and senior fellow at the Brookings Institution, Mr. Barr is currently working in the White House. He previously served as a special assistant to former Treasury secretary Robert Rubin during the Clinton administration. The Treasury nominee recently told a Center for American Progress forum that consumer protection needs to be at the "heart of our system of mortgage finance — not an after-thought or relegated to second class status." In related news, the President has nominated Helen Kanovsky to be the general counsel at the Department of Housing and Urban Development. She is currently the chief operating officer of the AFL-CIO Housing Investment Trust and previously served as chief of staff for Sen. John Kerry.