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Former Fannie Chief Settles
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The settlement also includes stock worth $1.8 million, to be donated to programs assisting financially strapped homeowners. Those are shares Raines sued OFHEO to allow Fannie Mae to release.
He also agreed to forgo $5.3 million in other benefits, OFHEO said.
Howard's settlement, which OFHEO valued at $6.4 million, followed a similar pattern. Spencer agreed to pay $275,000, of which a Fannie Mae insurance policy will cover all but $25,000, said a source familiar with the settlement.
The resolution of the case "was at the high end of settlements in similar matters," OFHEO spokeswoman Stefanie Mullin said by e-mail.
Spencer's attorney, David S. Krakoff, said she maintained from the beginning that the allegations had no merit.
The agreements avert a public airing of evidence at a hearing that was scheduled to begin in September.
In January, a federal district court judge presiding over related litigation held OFHEO in contempt for failing to turn over certain records for use by the former executives in their defense. The judge ordered OFHEO to give the executives documents that the regulatory agency considered privileged, but that order has been stayed pending appeal.
The litigation has been a burden for OFHEO, which has spent millions of dollars just responding to document requests. It has also been a burden for Fannie Mae, which has been obligated to pay for the former executives' defense.
Raines is now on the board of Revolution Health, a company founded by former AOL chairman Steve Case. Howard is not employed; Spencer is a real estate agent.
