Fannie Mae did not abandon its goals of increasing homeownership for poorer Americans in pursuit of higher profits, as some have alleged, said Daniel Mudd, the chief executive of the company who was ousted by the government in 2008.

There have been suggestions that Fannie Mae subordinated its mission to the pursuit of higher profits, but I beg to differ, Mudd said in prepared testimony to the Financial Crisis Inquiry Commission.

Mudd said the firm's failure ultimately stemmed from its unsustainable business model of a private firm seeking profits with a public goal of increasing homeownership.

Homeownership rates were too high ahead of the financial crisis and the government must now decide how much of a role it wants to play in the financing of U.S. homes, Mudd said.

(Reporting by Corbett B. Daly; Editing by Chizu Nomiyama)

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