Freddie Mac hires former Wells Fargo exec Michael DeVito as CEO

Michael DeVito, Wells Fargo's former executive vice president of home lending, will take over as full-time CEO of Freddie Mac on June 1.

DeVito will replace interim CEO Mark Grier, who will return to his duties on Freddie Mac's board. Grier assumed the interim role in March after David Brickman retired, vacating the CEO post in January.

"Michael is a well-regarded leader with proven success in virtually every aspect of the mortgage industry," Sara Matthew, the nonexecutive chair of Freddie Mac's board, said in a press release. "His background and experience make him an excellent choice to lead Freddie Mac at this time."

DeVito steps into the role as the debate of both Freddie Mac and Fannie Mae’s future continues following the January changes to the Preferred Stock Purchase Agreement, the contractual arrangement that placed the government-sponsored enterprises under federal control.

Mark Calabria, director of the Federal Housing Finance Agency, wants the GSEs to build enough capital to end the conservatorships, but a recent report from Keefe, Bruyette & Woods said it could take at least 15 years at the current pace of retained earnings. Even then, the U.S. Treasury would likely exercise its rights to convert the growing preferred stock preferences into common stock when that occurs.

DeVito worked with Wells Fargo for over 23 years. He was thrust into running the home lending unit, first on an interim basis in November 2017, following the firing of Franklin Codel, who directed all aspects of consumer lending at the bank, regarding the inappropriate termination of a former employee.

In January 2018, DeVito was given the job full time, which he held until he retired in July 2020 and was succeeded by Kristy Fercho.

Before taking the top position in Wells Fargo's mortgage unit, DeVito oversaw the production and servicing units at separate times in his tenure. He also ran default servicing, loan workout, and mortgage retail underwriting and operations. At one time, he served as the head of education financial services at the bank.

"I thank the board for their confidence, and I look forward to getting to know the people and leaders who make Freddie Mac so successful," DeVito said in the press release about his Freddie Mac appointment. "Working together, I'm certain we can continue to deliver the liquidity, stability and affordability the housing markets need while enhancing our own safety and soundness."