Little-Known Investment Banker to Take Reins at OFHEO.(Office of Federal Housing Enterprise Oversight, Mark C. Brickell)

Investment banker and derivatives expert Mark C. Brickell has been picked by the White House to head the Office of Federal Housing Enterprise Oversight, the overseer of Fannie Mae and Freddie Mac.

OFHEO director Armando Falcon, a holdover from the Clinton administration, resigned early last week with one year left on his term.

Industry executives told Mortgage Servicing News that they know little or nothing about Mr. Brickell, who worked for J.P. Morgan & Co. (now called J.P. Morgan Chase Co.) for 25 years.

"I understand that technically he is very smart," said one mortgage insurance official. "That's good, because it means he can understand complex issues - so even if you somehow disagree with him, you know where he's coming from."

One investment banker said, "He'll understand the risks that come with derivatives," but added, "That doesn't necessarily mean he's a good administrator."

Howard Glaser, who runs Capitol Hill Associates, said the nomination of Mr. Brickell "should guarantee that the agency will be around for a couple more years."

Mr. Glaser, former counsel to Department of Housing and Urban Development secretary Andrew Cuomo (of the Clinton administration), noted that the issue of replacing OFHEO "is now moot" with the Brickell nomination.