Freddie Mac Names Diana Reid CEO

Nearly a year to the day after announcing plans for a CEO search, Freddie Mac (FMCC) has appointed a former PNC executive and commercial real estate veteran to spearhead the government-sponsored enterprise as it prepares to tighten underwriting requirements for multifamily loans.

McLean, Va.-based Freddie Mac announced Tuesday that its board of directors selected Diana Reid, who previously spent nearly 12 years leading PNC’s real estate business division, as the company’s new leader. Michael Hutchins, who was named interim CEO in March, will remain in his role as Freddie Mac’s president. 

“Diana’s proven track record and vast experience in housing finance, real estate and capital markets make her an excellent choice to further Freddie Mac’s mission-driven work,” Lance Drummond, non-executive chair of Freddie Mac’s board of directors, said in a statement. “I have the utmost confidence that she is the right person to take Freddie Mac into the future.”

Reid, who was an executive vice president at PNC until 2019, arrived to guide the Pittsburgh-based bank’s real estate business in 2007 during a challenging time as a credit crunch was taking hold from a collapse of the U.S. housing market followed soon after by the 2008 Global Financial Crisis. 

The financial services veteran arrives at Freddie Mac amid a period of dislocation for multifamily owners and lenders due to higher interest rates. Freddie and fellow government sponsored enterprise Fannie Mae are preparing to implement more stringent requirements for loans the agencies provide financial backing to in an attempt to root out mortgage fraud after a Freddie-backed loan negotiated by Meridian Capital Group was called into question last November. 

“It is an honor to join Freddie Mac and lead the company as it carries out its vital role in the housing finance market,” Reid said in a statement. “I look forward to working with the board, management and my colleagues at Freddie Mac to continue and expand the company’s contributions in providing liquidity, stability and affordability for housing in communities across the country, and to ensure the company’s safety and soundness for the next generation.” 

Prior to joining PNC, Reid founded Beekman Advisors and worked with real estate finance company owners and other business executives offering strategic advice. She also spent nearly two decades at Credit Suisse First Boston working on the mortgage trading and debt capital markets side of the CRE business.   

 Andrew Coen can be reached at acoen@commercialobserver.com