Fannie Mae has recently dismissed over 100 employees amid allegations of unethical conduct, marking a significant shake-up within the government-sponsored enterprise. The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, announced the firings on Tuesday. Bill Pulte, the FHFA director and newly appointed chair of Fannie Mae’s board of directors, revealed that these staffing changes occurred under his leadership, which began less than a month ago.
In a statement addressing the layoffs, Pulte emphasized the importance of integrity in the housing sector. “In President Trump’s housing market, there is no room for fraud, mortgage fraud, or any other deceitful act that can jeopardize the safety and soundness of the housing industry,” he declared.
Despite the strong rhetoric, the FHFA’s brief announcement provided scant details about the specific nature of the alleged misconduct.
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Adding to the controversy are reports from Indian media outlets, including the Times of India, which claim that Fannie Mae may have terminated as many as 700 employees. Some of these layoffs were allegedly linked to irregularities involving charitable donations. Neither Fannie Mae nor the FHFA has commented on these claims, leaving questions about their validity unanswered.
Meanwhile, Pulte has acknowledged that the agency has undergone a substantial workforce reduction as part of broader government directives. He noted that FHFA had exceeded expectations set by the Department of Government Efficiency (DOGE), achieving a reduction of more than 25 percent of its active workforce. In a post shared on X, Pulte explained that divisions are being consolidated to prioritize homebuilding efforts and bolster safety measures within the housing market.
The upheaval at Fannie Mae and Freddie Mac extends beyond layoffs. Since assuming control, Pulte has made sweeping changes to leadership at both entities. In his first week, he removed over a dozen board members and installed himself as chair of both boards. Additionally, dozens of agency employees have been placed on administrative leave as part of his restructuring efforts.
Meanwhile, speculation grows over the federal government’s plans to release Fannie Mae and Freddie Mac from its control—a move that could have profound implications for the housing market. Together, these entities back approximately 70 percent of U.S. mortgages, according to data from the National Association of Realtors. While their potential privatization could reshape the industry, uncertainty surrounds how such a transition might unfold and what consequences it could bring for homeowners and lenders alike.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
