The coupon re-prices quarterly at the higher rate of 7 percent and the sum of the 10-year CMT rate plus 237.5 basis points. Lehman Brothers Inc. served as sole placement agent for the transactions. "This placement of preferred stock is a key component of Fannie Mae's capital restoration plan," said Donald Marron, the member of the Board of Directors who is leading the company's work with OFHEO on the required capital plan. "Working with our safety and soundness regulator OFHEO, we will be finalizing the details of the capital plan shortly." The Office of Federal Housing Enterprise Oversight (OFHEO) has a mission to ensure the financial safety and soundness of Fannie Mae and Freddie Mac. Fannie Mae is the focus of federal investigations and shareholder lawsuits, and the SEC has directed the company to make accounting corrections that could erase millions of dollars in past profit.