FHFB Chairman Resigns

John Korsmo, chairman of the Federal Housing Finance Board, is resigning as head of the agency, the White House confirmed late Friday afternoon.As of MortgageWire's deadline, no further details were available. Mr. Korsmo and his chief spokesman, Carter Wood, could not be reached for comment. In late February, Dow Jones reported that Mr. Korsmo was the subject of a criminal probe regarding possible obstruction-of-justice charges. For several months, FHFB Inspector General Edward Kelley investigated whether Mr. Korsmo violated any laws by lending his name to a political fund-raiser for fellow North Dakotan Rick Clayburgh. Dow Jones reported that the IG investigation had turned into a criminal probe by the Department of Justice. In months past, Mr. Korsmo has maintained that he did nothing wrong in regard to the fundraiser.