WASHINGTON–In a case still lingering from the financial crisis, Daniel Mudd, the former head of Fannie Mae, has reached a settlement with the Securities and Exchange Commission.
Under terms of the latest deal, Fannie Mae will contribute $100,000 on Mudd's behalf to a Treasury Department account that receives financial gifts to the United States, according to documents filed with the SEC. The original suit against Mudd had been filed in 2011 and had accused him of misleading investors about Fannie's exposure to risky mortgages before the crisis.
Mudd has denied wrongdoing and he did not admit any in the Monday agreement.
The agreement with Mudd follows settlements with Fannie's former chief risk officer, Enrico Dallavecchia, and former executive vice president, Thomas Lund, who agreed to similar terms when they settled for $25,000 and $10,000, respectively, in September 2015.
Mudd led Fannie Mae from December 2004 through September 2008, when the Treasury Department effectively took control of the company.
The SEC had accused Mudd and the five other Fannie and Freddie executives of downplaying the companies' exposure to risky loans.
The SEC said Fannie Mae concealed exposure to more than $100 billion of subprime and $341 billion of Alt-A loans.
Executives at Freddie Mac have also settled cases involving similar charges.