Washington (April 12, 2004) -- The Office of Federal Housing Enterprise Oversight, the regulator that oversees Freddie Mac and Fannie Mae, proposed new corporate governance standards it says will address weaknesses and help prevent future misconduct at the mortgage concerns, including the separation of the chief executive and chairman functions and the establishment of term and age limits for the boards of directors.
The proposed rule would limit directors to 10 years of service and an age limit of 72; would require audit partner rotation every five years and auditor rotation every 10 years; would require the board and committees to meet more frequently; and would require a review of codes of conduct at least every three years. In addition, the OFHEO proposed additional rules related to the independence of board members and would require the boards to "remain informed of the companies’ growth plans and resources to manage risks."
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