Íbúðalánasjóður - Changes board/management/auditors

Organisational changes at the Housing Financing Fund (HFF) – New organisational chart

The Housing Financial Fund (HFF) has achieved considerable operating
economisation over the past two years. Continued restructuring, improved
services and operational simplification are the goals of the new arrangements
within the HFF that were announced today. In the future, there will be four
department directors instead of six. A new organisational chart to this effect
was approved by HFF's Board of Directors this afternoon. The new arrangements
are intended to further steer the HFF's operations toward its core goals which
involve providing housing loans to the general public throughout Iceland. At
the same time, work will continue on selling apartments held by the Fund and
efforts made to decrease the part of the operation relating to the resolution
of debt issues following the collapse of the banking system. This work has
largely been completed. 

After the organisational changes, the operation of the HFF will be under four
main departments: corporate, lending, finances and operations. The tasks of
asset management and IT will be incorporated into the new operations department
and the tasks of the legal department will be under the direct control of the
CEO. The Director of the Corporate Department will be Guðrún Soffía
Guðmundsdóttir, the Director of Lending will be Úlfar Þór Indriðason, the
Director of Operations will be Gunnhildur Gunnarsdóttir and the Director of
Finances will be Sigurður Jón Björnsson.

The organisational changes are the result of the policy formulation work
carried out by the Board of Directors following the report issued last spring
by the Mister of Welfare's taskforce on the future organisation of housing
issues. The policy focuses on operational simplification, greater focus on the
Fund's core operations, targeted actions to resolve the financing of the Fund's
commitments and reaching a balance in the Fund's lending operations and its
financing. 

The Board is of the opinion that the said organisational changes will make the
Fund more able to undertake its statutory responsibilities in the housing
market: i.e. to provide public services, to promote housing security on fair
loan terms irrespective of social standing or geographic location and thereby
ensure stability in the Icelandic housing market. The provision of advice,
education and services to the Fund's customers will also be strengthened in
conjunction with the organisational changes.