Fannie Nixes Foreign 'Advisory' Services Unit

Less than a month after the nation's housing secretary publicly raised concerns about Fannie Mae's consulting work for foreign countries, the government-sponsored enterprise has decided to scuttle the effort entirely.Since its inception, Fannie's International Housing Finance Services unit had provided advisory services to public and private firms in at least 38 nations. In a May 2 memo to clients, IHFS managing director Soula Proxenos said the GSE was ceasing all foreign advisory work based on "our regulator's guidance." In early April, Housing Secretary Alphonso Jackson told the Senate Banking Committee that some of Fannie Mae's international activities were not consistent with what its charter allows. Even though Fannie is killing the effort, three already-scheduled seminars planned by IHFS will proceed. The seminars will be held in Washington, D.C., Mexico City, and Cape Town, South Africa.