Another Head on the Block at Freddie Mac?

MCLEAN, VA-Accounting and administrative headaches at leading home and multifamily mortgage lender Freddie Mac have led to yet another hurdle for the company with the Office of Federal Housing Enterprise Oversight’s recent suggestion that CEO Greg Parseghian, who was elevated to the position from CIO in June amid the recent management changes, be given the boot.

It was just last month that Board of Directors chairman Shaun F. O’Malley came out in favor of Parseghian following the announcement that independent lawyers–investigating alleged accounting transgressions that caused three years of earnings statements to be off by anywhere from $1.5 billion to $4.5 billion–had concluded that the deposed leadership team had deliberately violated legal accounting procedures. “I want to say again that we have the right CEO in Greg Parseghian leading our business,” O’Malley explains in the prepared statement from July. “Greg is a person of considerable talent, deep expertise and unquestioned integrity and he is uniquely positioned to lead our drive toward the highest standards of financial reporting and disclosure.”