Although such a rise to power is often humbling to the confident, for the understated 49-year-old executive, it is not unusual.  Raines, who grew up in Seattle, has been ambitious and accomplished from youth, a source of pride to his working-class parents and the African-American community.

Raines' hard work ethic was acquired from his parents, who worked as custodians.  Raines is not too shy to let people know that he is not only a graduate of Harvard College and Harvard Law School, but also a graduate of Aid to Families with Dependent Children, or welfare.  I grew up in a working-class family, an intact family.   My parents raised seven of us, a girl and six boys, one a cousin who grew up with us after his mother died.  We had all the problems working-class families have, says Raines.

His educational encouragement came from several sources throughout his academic career, but most notably from his high school debate team coach, Eva Doupe.  I remember in my senior year finding myself torn between love and responsibility to the football team as the captain, and the debate team as state champion, relates Raines.  One day there was a football game and a debate tournament on the same day and both coaches went into a room to decide what I was going to do.  As a result, I ended up competing in the debate tournament.  This was an example of what Ms. Doupe was made of and the impact she had on me.

From left to right: Larry Small, president and COO; Jamie Gorelick, vice chair; James Johnson, the chairman CEO; and Franklin Raines, new chairman and CEO, Fannie Mae Corporation.

In honor of Ms. Doupe, Raines ultimately set up a scholarship in her name.  The scholarship focuses on students who want to become public school teachers. Although athletics meant a lot to Raines growing up, he excelled in academics.  Eventually he went on to garner undergraduate and law degrees from Harvard.  He became a Rhodes Scholar at Oxford University. 

The president of the HBO Home Video Division, Henry McGee, is a former Harvard classmate and long-time friend of Raines.  He thinks, academic and professional accomplishments aside, his friend's upstanding character makes him the special person that he is.  Frank genuinely cares for other people and that comes across in pretty much everything he does, notes McGee.  People realize that he has a seriousness of purpose and concern that wins them over to his cause.

If attention to family life influences professional outlook, then Raines' tenure at Fannie Mae will be bright.  Frank is a hard worker, but not at the cost of his family life, reveals McGee.  He believes in a balance and that makes for success in all areas of his life.  He is also a great romantic as he proved by proposing to his wife again during a recent trip to Paris.  He is very close to his three daughters.

Beyond his roles as corporate executive, husband and father, Raines knows that he is a role model for young African-American students, including those who aspire to overcome the racial challenges in politics and in the corporate world.  Raines comments, I don't always feel like a role model myself, but I'm constantly reminded by those who look up to me that I am. People come up to me and say I heard you give a speech and it sure had a big impact on me.  There are young people, particularly young African-American males, who are looking at me and seeing a way that they can pattern their careers and lives.   That type of flattery never ceases to amaze Raines and reveals a sincere humility that is disarming.

To be sure, the same elements of Raines' strength of character and accomplish-ments that have had a notable impact on today's youth and garnered him much respect during his service to the Clinton Administration will need to be applied to his new duties as Fannie Mae's chief. 

Taking on corporate duties is nothing new to Raines.  His resume suggests that he functions just as easily in the corporate arena as he does in political and social arenas.  After graduating from law school, he practiced law in Seattle with a private firm for a modest salary.  Eventually, he made the transition into politics by joining the Jimmy Carter Administration as an assistant director of the White House Domestic Policy Staff.  During that time, he tackled such issues as welfare reform, food stamps and social security. 

Soon after the end of the Carter Administration, Raines moved into the corporate world, taking a position with a New York investment bank, and from 1991-1996, he served as vice chairman for Fannie Mae.   As vice chairman, Raines made his mark.  He developed mortgage standards and cut some of the red tape associated with processing mortgages.  He is credited with helping to create an electronic system that aids loan counselors with repairing credit for prospective home buyers. 

In 1996 President Bill Clinton contacted Raines and convinced him to return to the world of politics by joining the administration as OMB director.  Raines, then became a key player in developing and pushing through the balanced budget amendment.  National Economic Advisor Eugene Sperling worked closely with Raines on the budget and has nothing but praise for his contribution to the administration. 

This was during a critical moment when the administration needed to move the campaign of '96 to a more bi-partisan approval in order to obtain a balanced budget agreement, says Sperling.  Frank had the invaluable capability to reach out to both Republicans and Democrats for a consensus.

But Raines' contribution to the administration didn't end with the balanced budget.  When notable spokespeople were leaving the White House, Raines took up the charge and became one of the top policy representatives for the President.  Frank could communicate the president's message in a very professional and clear manner that made him a favorite for Sunday news programs, explains Sperling.  Whether he was addressing the news media or members of Congress, Frank knew when to be diplomatic and when to draw a tough line if appropriate.  He is a true gentleman and a considerate colleague that was a delight to work with, even during the most stressful of times.

Although Raines had originally planned to remain with the administration through the end of the term, he admits that the opportunity to work with an impressive company like Fannie Mae without having to relocate his family comes around but once in a lifetime.  He simply felt that he could not pass up such an offer. 

In his new role with the company, Raines will need to draw from all his experiences.  Fannie Mae is the dominant force in the nation's housing finance industry with the government-mandated objective to encourage homeownership among low to moderate-income people.  In short, Fannie Mae serves as the intercessor between home ownership hopefuls and major mortgage lending companies.  Since the company enjoys a government guarantee of its debt, it can borrow billions of dollars at low interest rates and virtually no competition.  As a result, Fannie Mae maintains a healthy presence on Wall Street.

Raines will be expected to maintain the company's success and growth while dispelling skepticism that his leadership is merely symbolic and will have little effect for low income African Americans desiring home ownership.

One such skeptic is Professor Richard Turner of the Social Studies Department at the University of Michigan/Dearborn.  Although Raines is very qualified and deserving of the position, I do not believe the fact that he, as an African-American man in that position, serves any particular significance within the African-American community or will generate real impact, states Turner.  Appointments like his are symbolic moves, but the effects are seldom filtered down to those who really need it.

Turner is convinced Raines could best use his new-found power by creating middle-level management positions in the company for people who are African Americans, because those are the positions that truly carry out policy.

At this point in time, the African-American community has gotten beyond the need to have figure heads in positions of power in politics and corporate America.  That only serves to ease the conscience of white America, declares Turner.  What we need is institutional change.

But Turner's sentiment concerning Raines appointment may be unique as evidenced from contrasting comments made on behalf of the National Urban League.  The organization's president, Hugh B. Price, is pleased with the selection of Raines and views it as a significant milestone for Black America. 

Raines' position is a well-deserved individual achievement, as his educational and career accomplishments bear eloquent witness, says Price.  His appointment also records a great benchmark in the annals of Black-American history: Raines is the first African American to head a Fortune 500 corporation.  This is a time of unparalleled opportunity for African Americans.  It is that sense above all which has fueled the intelligence, shrewdness, perseverance and grit of a myriad of African Americans like Frank Raines and those who've met with us.

For Franklin D. Raines, taking over the helm at Fannie Mae was a natural next step in an already impressive career.  Although the pressure is on and all eyes are looking, Raines gives no indication that he is concerned about whether he can deliver the goods. He hopes to continue the company's progress financially, improve its employment base and diversity efforts, and expand home ownership opportunities for the needy.  Those who know Raines are certain that the qualities and characteristics that make him a loved husband, father, and friend and a deserving role model will make him a  highly-successful corporate executive.