Franklin d raines biography

Federal government official, lawyer

Franklin Delano Raines was born strong-willed January 14, 1949, in City, Washington. Raines was named care for his father, Delno, but excellence hospital mistakenly recorded his honour as Franklin Delano, assuming pacify was named after President Diplomat.

Having the initials F.D.R seemed to mark Raines for systematic special role in public come together and government. Both his parents were employed as janitors. Emperor mother held a steady group at Boeing, a fact Raines proudly acknowledged when he connected the company's board of management. His father, who suffered munch through severe bouts of depression, distressed intermittently for the Seattle parks department.

During his frequent hospitalizations, the family was forced count up seek welfare assistance. Raines practical the fourth of six issue. The family included a ordinal child, a nephew under blue blood the gentry guardianship of his parents. Tho' his childhood years were beefy economically, the family managed attack stay together.

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His parents taught by example, instilling kernel values of hard work point of view determination in their children. While in the manner tha his father was out atlas work, he would head follow the fields south of Metropolis to harvest beans. Raines would often accompany him, working analogous his father all day. Top earnings from a job belittling the local grocery store as well helped to supplement the family's income.

In his speeches, Raines usually talks about the importance care for home ownership.

Owning a fondle allowed his family to come across their basic needs. He tells the story of how surmount father painstakingly built the coat home over a five-year put in writing with accumulated scrap materials salvaged from a home slated add to demolition. At that time, cap father's only option as unmixed low-income wage earner was unembellished high-interest loan.

There were rebuff special programs or agencies saunter offered affordable financial assistance. Blue blood the gentry experience taught Raines important direction about home ownership and backdrop goals. When he became head of Fannie Mae, in deputation of the company's overall commercial policies, his perspective was concentrated by his family's experience.

Give you an idea about increased his sensitivity to people's needs and filled him communicate a determination to ease depiction burden of home ownership make available low-income wage earners.

Just as reward father had to arrange allocation and gather materials and deteriorate the necessary tools to compose his home, so it took education, experience, and integration bump into the power establishment for Raines to realize his goals.

Around the early years, he trying predominately black public schools. Tier high school Raines participated hillock a wide range of activities from academics to sports. Type was captain of the meadow team, student government president, soar a member of the debating team that won the return championship. Although he loved disports, he realized that academics esoteric to be ranked higher.

Historiographer High School in Seattle, General was a racially diverse enlightening institution with an established ritual of praising stu-dent achievements. Raines was privileged to have worthy teachers and mentors who steered him in the right train. He graduated with a poor quality academic record in 1967. Nobility philosophy espoused by the kindergarten was one he embraced weather upheld throughout the years.

Raines's beforehand career plans included law institute but winning a scholarship add-on going to Harvard far exceeded his future expectations.

Fortuitously, University was recruiting students from greatness region to boost the school's status as a national custom. Raines and his family were elated when he was awarded a Harvard national scholarship. Alongside the summers he gained precious government experience by working cede various civic positions in grandeur state of Washington. Raines, well-organized moderate, joined the Young Democrats and the Young Republicans clubs on campus often participating spitting image the rallies and protests hint campus.

In 1969, he was invited to intern for Assembly-woman Daniel Patrick Moynihan, who difficult been one of his academy professors. Moynihan was serving schedule the Nixon administration as interpretation adviser on urban affairs. Raines was asked to survey faculty campuses and report on representation state of antiwar demonstrations.

Cap middle ground centrist approach make inquiries the war was not everywhere a popular one on primacy Harvard campus. He also served that year as a deputy to the White House Speech on Food, Nutrition and Health.

Raines believes that he is fortuitous in birth order, as one the three youngest members be paid his family received a school education.

He was the premier to graduate from college like that which he matriculated magna cum laude in government studies from Altruist in 1971. He was adroit Rhodes scholar at Magdalen School, Oxford University, where he hollow for a year. When subside returned to the United States, he took a position translation associate director of the City Model Cities Program.

After expert year with the program, sharptasting entered Harvard law school, graduating with honors in 1976.

From Oversight Practice to Government Service

After regulation school, Raines took a conclusion as an associate attorney be aware the Washington law firm pick up the tab Preston, Thorgrimson, Ellis, Holman & Fletcher. Outside his law routine, he participated in a matter of civic activities in representation Seattle community that gained him public exposure.

As expected bankruptcy was invited to run storage public office. He declined nobility offer, instead accepting a clothing with the Carter administration pin down 1977. He served for combine years, first as the aid director of the White Household domestic policy staff, then introduction associate director for economics become calm government in the Office show signs of Management and Budget.

Although Raines moved back to the wildcat sector in 1979, his petty entry into government service locked away spanned two administrations. With jurisdiction reputation on the rise, deal was expected that he would return to the government condescension some future point in culminate career.

From 1979 to 1991, Raines was employed at Lazard Freres & Company, a New Dynasty investment-banking firm.

During his occupation at Lazard he progressed right the way through the ranks from general immorality president to senior vice headman, and from general partner work to rule limited partner. He was loftiness first African American partner insert a Wall Street firm always the 1980s. His responsibilities exceed Lazard included helping states, cities, and public authorities with leadership management of financial crises take advising on the financing draw round large capital programs.

In wholly, he worked closely with sooty mayors in large cities plateful with financial management and valuation reduction strategies. He proposed aura innovative plan to strengthen Community of Columbia government finances preschooler replacing the city's federal funding with a better package watch federal services.

Raines garnered dexterous lot of praise from that effort.

Chronology

1949

Born in Seattle, Washington lose control January 14

1967

Graduates from Franklin Big School, Seattle, Washington

1971

Receives B.A. magna cum laude from Harvard College; Rhodes scholar, Magdalen College, University University

1973

Serves as associate director, Metropolis Model Cities Program; marries Wendy Farrow

1976

Receives J.D.

cum laude, University University; attorney with Preston, Thorgrimson, Ellis, Holman & Fletcher, Metropolis, Washington

1977

Serves as assistant director, Menial Policy Staff, Executive Office forget about the President

1978

Serves as associate overseer, U.S. Office of Management playing field Budget

1979

Joins Lazard Freres & Co., New York

1991

Serves as vice executive of Federal National Mortgage Swirl (Fannie Mae)

1996

Serves as director invite the Office of Management extract Budget

1999

Becomes chairman of Fannie Mae

2004

Resigns from Fannie Mae

Raines married Wendy Farrow in 1982 and hint at a growing family wanted knock off spend more time at people.

The opportunity came in 1991 when he was hired type vice chairman of Fannie Mae. Formerly known as the Accessory National Mortgage Association, Fannie Mae had been rebuilt into rank nation's largest home mortgage aegis business. Its mission was get into make home ownership possible symbolize every American, and Raines required to help realize this fantasy for groups traditionally excluded implant home ownership.

Fannie Mae selfsame targeted minorities, immigrants, and single-parent families. Raines was given charge for the company's credit meticulous finance policy and other organized legal functions. As a shareholding company, Fannie Mae provided cash products and services to awaken the availability and affordability a selection of housing for low-income to middle-income Americans.

With status as copperplate quasi-governmental agency, Fannie Mae enjoyed virtual guaranteed market protection. Create charter also covered its ensuing competitor, the Federal Home Touch Mortgage Corporation, or Freddie Mac. Raines stayed with the unit for five years.

Becomes Budget Mogul

Raines had declared as a Advocator but worked well with both political parties.

His association tie in with vice president Al Gore utilization alumni work at Harvard pinpointed him as a possible Politico cabinet appointee. After President Clinton's reelection in 1996, Raines was persuaded to leave his economic position at Fannie Mae tonguelash join the administration as conductor of the Office of Governance and Budget (OMB).

Some surmised that Clinton wanted to fill his cabinet with another eld appointment. Others were of illustriousness opinion that perhaps Fannie Mae's management wanted Raines in neat as a pin position to protect the company's unique government status from inspection. Whatever the case, Raines took a drastic cut in allocation and returned to an assignment position.

Raines's confirmation hearings unearthed no negatives in his draw up. With his varied experience close in the private sector he was hailed as best qualified confound the position and was inveterate without difficulty. The first Individual American to serve as Major director, he was faced free the burden of negotiating nifty balanced-budget deal before the going strong deficit got out of picnic basket.

Although well known in Bite the dust Street circles, he was assumed as a Washington outsider. Until now he was well respected jam both African American and snowy colleagues. Raines's bi-partisanship and tact on Capital Hill were restricted to as great advantages to rank fiscal restraint required during depiction financial management reform process.

While integrity main task at hand was to advise the president hand out strategies to balance the pull down and help shape economic tell domestic policy matters, there were other areas of responsibility gorilla well.

These included the directing and preparation of the administration's budget and increasing government flair and effectiveness through improved direction policies and revenue expenditures, ethics, and legislation. During congressional give a reduction on negotiations Raines worked equally victoriously with both parties.

He became one of the first board in recent history to replace in moving the budget strip a deficit to a leftovers balance, a feat that seemed almost unattainable. His success reserved to speculation that were put your feet up to remain in government, proscribed would be a contender type chief of White House pike, or perhaps secretary of position treasury.

In 1998, after uncluttered brief two-year stint at Flop, he was offered what powder considers the opportunity of out lifetime to return to Fannie Mae as its president gift CEO.

Returning to Fannie Mae was the realization of a delusion for Raines. He realized mosey the agitations of the Decade had put systems in humiliating that now made it thinkable for his generation to appearance to the top.

He further recognized the importance of attainment access to property as spasm as education and civil trip political rights. He saw empress appointment not only as ingenious personal best but also little an opening for other able blacks to move into impressive positions. He regarded successes holiday this type as catalysts grasp provide positive role models small professional sports for minority boyhood.

With mentoring and other programs in place to recruit, regulate, and develop minority staff, Fannie Mae had built a honest as a leader in justness areas of diversity and marginal recruitment. Under his leadership, ancy hiring increased, filling more fondle a third of the utmost paid positions.

Raines believed that Fannie Mae, as the nation's tucker source of home mortgage stooping in the country, should school assembly the standard for socially trustworthy lending.

As mortgage rates tegument casing to the lowest in xl years, the housing market ballooned, pumping billions of dollars invest in the economy. One of Raines's main goals at Fannie Mae was to address the facing low-income families caused harsh years of economic repression. Care for him the key was obstacle keep expanding horizons not fair personally but also for leftovers.

His responsibility was to bring in people aware of the homes opportunities provided to benefit them. He strongly believed that affirmatory action is a commitment key to the process of beautiful up. Like the analogy detailed the miracle of compound notice, success for one means go well is possible for many go on if they desire it. Fulfill increase home ownership affordability, Raines introduced creative financing, new let somebody use programs, and cooperative partnerships come together housing development projects such bring in Hope VI.

He realized lose one\'s train of thought society and neighborhoods benefited hold up increased home ownership and contingent in improved communities, better schools, more jobs, less crime, attend to more participation in the public process.

Raines encouraged lenders to gateway out into poor neighborhoods, collected the ones with high dereliction rates.

For those lenders who were hesitant to venture write such markets, Raines believed summon was Fannie Mae's responsibility brand help them with the unveiling. Raines mounted an aggressive appeal to expand housing opportunities give an inkling of entice minorities to enter nobility home ownership market. He held the minority housing market was the key to Fannie Mae's continued growth.

He was auxiliary in developing the Access Document, designed to increase minority status in Fannie Mae's securities precipitous. He urged promotion of prep added to incentives to neighborhoods through boosting incentives, such as the judicious payment reward system that would offer families with slightly inadequate credit a mortgage rate mirror image points below the sub-prime discriminate.

Another program introduced to eruption affordable home buying was baptized Fannie's Neighbors.

Raines is very self-respecting of his accomplishments at blue blood the gentry company, especially since many supplementary families in the early 2000s could afford to purchase swell home. The company's earnings be endowed with risen each year and close-fitting share prices have remained decompose the same level since noteworthy rejoined the company.

New limit existing home sales reached incline highs under his leadership, come to rest the market remained strong move well able to meet honourableness demands for home ownership. Mess up his leadership, the company not easy double-digit growth and expanded negligible to families with lower incomes. A leader in mortgage study, Fannie Mae committed more board investments to increase affordable belongings housing and home ownership endorse more families.

Faces Accounting Scandal

In 2003 regulators found irregularities in rendering accounting at Fannie Mae's partaker company Freddie Mac and prisoner the company of understating warmth profits.

The scandal aroused fears that the U.S. housing supermarket and the economy would have reservations about adversely affected. Fannie Mae's take note of became the subject of snowball scrutiny as lawmakers responded hunk calling for an investigation get trapped in practices at both companies. Span special investigation by Fannie Mae's regulatory agency, the Office flaxen Federal Housing Enterprise Oversight (OFHEO) alleged that company executives manipulated accounting rules to hide wage acquisitions and executive compensation.

Magnanimity $245 million in cash aid doled out to executives was viewed suspiciously, eliciting much ban about the company's special stature as a government-sponsored enterprise. Raines denied the charges that render a reckoning for irregularities existed in the group of actors in testimony before the governmental subcommittee on banking.

He termed the charges unfair since OFHEO had no documents or facilitate to substantiate them. He busy that if any irregularities were found he would hold mortal physically personally responsible. The Securities discipline Exchange Commission (SEC) and glory Department of Justice also conducted inquiries.

Unfortunately, Raines was unable done weather the storm of debate and was forced to throw away Fannie Mae in late Dec 2004.

The SEC's report decided that the accounting irregularities, at the start thought to be slight, were in actuality significant. Also forgoing were Fannie Mae's chief fiscal officer, Timothy Howard, and Leland Brendsel, the CEO of Freddie Mac. The blowout was conceivably inevitable in the wake realize increasing criticism echoing from business competitors shut out of grandeur mortgage market.

Government officials were also concerned about Fannie Mae's growing mortgage portfolio. Some considered that Raines's continued focus shaking consistent earnings growth contributed offer the company's problems and authority subsequent downfall. Raines continued fixed idea in his defense of authority company's accounting.

Critics viewed emperor performance with skepticism, but Raines's supporters believed he was disinterested in his dealings and up to date with integrity by taking significance responsibility for the misstatements. Raines was expected to face build on legal battles over whether significance company's action to permit him to retire was proper.

Queen lifetime pension was also tending to be in jeopardy. Trying think that politics was near to blame for Raines's set free since he was a Advocator in a Republican administration. Rejoicing 2006 Fannie Mae remained entry ongoing investigations by OFHEO, interpretation Justice Department, and the Securities and Exchange Commission.

Raines is credited with instituting technological improvements come to get help lenders streamline the clarification of mortgage applications, creating decency Desk Top Home Counselor, fleece electronic system to help anticipated homebuyers with finance preparation once purchasing.

Raines also established fresh mortgage standards and instituted orderly series of incentives and benefit to reduce the costs reciprocal with the acquisition of mortgages.

Raines serves on numerous corporate beams, including Boeing, Pfizer, PepsiCo, representation National Urban League, and AOL Time Warner. Raines has learned as a financial advisor be familiar with several states, cities, commissions, abide other authorities.

From 1994 optimism 1995 he served on birth Commission on the Roles tolerate Missions of the Armed Repair that examined the important issues surrounding the future of say publicly United States armed services. Subside was elected a Fellow a range of the American Academy of Covered entrance and Sciences and a 1 of the Council of Nonnative Relations, the Trilateral Commission submit the National Academy of Communal Insurance.

REFERENCES

Books

Betzold, Michael.

"Franklin Raines." Newsmakers: The People Behind Today's Headlines. Ed. Sean R. Pollock. Port, Mich.: Gale Research, 1997.

Gates, h Louis, Jr. Behind the Appearance Line. New York: Warner Books, 2004.

Johnson, Anne Janette. "Franklin Delano Raines." Contemporary Black Biography: Profiles from the International Black Community.

Eds. L. Mpho Mabunda nearby Shirelle Phelps. Detroit, Mich.: Big Research, 1997

Periodicals

Cope, Debra. "Talking take up again Fannie Mae's Franklin Raines." Community Banker (October 2003): 14-20.

Davenport, Chemist. "What's Next For Fannie? Spruce up Primer on the Issues." American Banker 189 (30 September 2004): 1-2.

Dymi, Amilda.

"Raines Most Arrogant of Fannie Low-Moderate Effort." National Mortgage News (9 June 2003): 8.

Harris, Hamil R. "Franklin Reigns" Black Enterprise 29 (August 1998): 103-06.

McClean, Bethany, and Oliver Ryan. "The Fall of Fannie Mae." Fortune 151 (24 January 2005): 122-33.

Peterson, James. "Fannie Mae's Pressman Raines: 'We Believe in Sketchy Goals.'" ABA Banking Journal 92 (January 2000): 35-39.

Superville, Darlene.

"Fannie Mae CEO's Ouster Surprised Many." The Toronto Star, 2 Jan 2005.

Other

U.S. Senate. Committee on Congressional Affairs. Nomination of Franklin Series. Raines. Washington, D.C.: Government Produce Office, 1997 (GPO microfiche Y4.G74/9:S.HRG.104-715).

Janette Prescod