Daniel Mudd, chief executive of Fannie Mae, was told last night that he still has the confidence of the rest of the board, as the chairman of the US mortgage giant ousted his finance director and his head of risk.

Stephen Swad, Fannie Mae’s chief financial director, and Enrico Dallavecchia, head of risk, stepped down last night.

Stephen Ashley, chairman of Fannie Mae, said in a statement: “The board of directors is firmly committed to Dan Mudd. The board will continue to work closely with Dan and his management team to guide the company and support the housing finance system through a very challenging period.”

The shake-up will also involve Peter Niculescu, the chief business officer, assuming an expanded role. He will now run three divisions — single-family mortgage guaranty, capital markets, and housing and community development.

Mr Mudd said: “This team will be responsible for meeting the dual objectives of conserving capital and controlling credit losses while Fannie Mae continues to provide crucial liquidity to the US housing and mortgage markets.”

Shares in Fannie Mae and Freddie Mac have lost around 90 per cent of their market value this year as they admitted to burgeoning losses.

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