Leadership Upheaval Leaves Fannie, Freddie Future Uncertain

It’s been a whirlwind week for Fannie Mae and Freddie Mac, with major leadership changes from the Federal Housing Finance Agency shaking up the landscape.

Bill Pulte, the new director of the FHFA, wasted no time in making his mark. Just days after being sworn in, he removed a combined 14 board members from Fannie and Freddie and appointed himself as chair of both institutions.

The former private equity executive added to that total Thursday when he let go Freddie Mac CEO Diana Reid, along with other top executives, according to Semafor, which first reported the firings. Pulte placed FHFA Chief Operating Officer Gina Cross and Human Resources Director Monica Matthews on leave earlier in the day.

Meanwhile, over at Fannie Mae, one of Pulte’s newly appointed board members, Christopher Stanley — who has ties to Elon Musk’s ventures — resigned after just one day on the job. While no reason was given, it adds another layer of uncertainty to an already volatile situation.

While changes in board leadership don’t immediately translate to new lending guidelines, the restructuring could mean a shift in how these institutions operate — especially if privatization efforts gain momentum again.

Pulte insists that privatization isn’t a top priority right now, but the idea of taking these mortgage giants out of government conservatorship has loomed for years, including during Donald Trump’s first term as president. Any steps in that direction could have massive implications for mortgage rates and investor confidence.

Despite the uncertainty at the top, the housing market is showing signs of life. Existing home sales rose in February as more inventory hit the market, though sales remain lower than this time last year. With mortgage rates still hovering around 6.65 percent, the market remains sensitive to any economic shifts — especially those coming from the agencies that play such a big role in mortgage financing.

All of this comes as Fannie Mae is cracking down on fraudulent lending. A recently revealed internal blacklist flagged eight borrowers tied to mortgage fraud schemes totaling $700 million in exposure. While fraud prevention is always a priority, the timing of this crackdown, alongside the leadership overhaul, raises questions about how these moves fit into the broader FHFA agenda.

For now, Fannie and Freddie continue to back nearly 70 percent of the U.S. mortgage market, keeping liquidity flowing. But with leadership in flux, industry players should keep a close eye on any policy moves that could reshape the financing landscape.

Outside of the Fannie and Freddie restructuring, there was plenty of news this week. Ryan Serhant is taking his brokerage out west, Brookfield takes a hit on its 34th Street office building and Los Angeles Mayor Karen Bass wants to suspend Measure ULA.

Ryan Serhant expands west

Ryan Serhant’s eponymous brokerage is making its first move beyond the East Coast, launching in Arizona with more than 50 agents in Phoenix. Serhant’s team now operates in nine states and recently added a 10-person team covering New York’s Hudson Valley and parts of Connecticut.

B&H Photo bought Brookfield’s 34th Street office building

B&H Photo has been revealed as the mystery buyer of Brookfield’s 333 West 34th Street, acquiring the office building at a steep discount. The iconic camera retailer paid $150 million for the 287,000-square-foot property — $105 million less than Brookfield’s 2018 purchase price.

Bass says she wants to pause Measure ULA. Is she allowed?

Los Angeles Mayor Karen Bass is considering suspending Measure ULA, the city’s controversial “Mansion Tax,” but it’s unclear if she has the authority to do so. The tax imposes a 4 percent levy on property sales over $5 million and 5.5 percent on sales above $10 million, with the goal of funding affordable housing and homelessness initiatives.

Shapack, CRG in talks with Global Ambassador for Fulton Market hotel

Developers Jeff Shapack and Shawn Clark are a step closer to starting construction on a massive Fulton Market mixed-use project by closing in on a luxury hotel operator. Global Ambassador is nearing a deal to run the lodging component of Shapack Partners’ and CRG’s planned development in the transforming neighborhood.

Map: Here are South Florida’s canceled or delayed office projects

In recent years, South Florida’s office market appeared resilient to financial woes experienced elsewhere in the U.S. Major companies leased across the tri-county region, making brokers giddy. Developers announced plans for new South Florida office projects, offering flashy renderings. Now, some of these projects are canceled or paused.

Mortgage fraud co-conspirator sentenced to “significant” 30 months

A federal judge in New Jersey sentenced Moshe Silber to 30 months in prison for his involvement in a broad mortgage fraud scandal. He faced up to five years after pleading guilty to one count of conspiracy to commit mortgage fraud in 2024. The judge repeatedly said that Silber had committed a “significant crime” and a “significant sentence was necessary.”

Landlord sues Brandon Miller’s REEC over abandoned Nolita office project

The owner of a Nolita property once slated for development by Brandon Miller’s Real Estate Equities Corporation is suing the developer and its principals for abandoning the ill-fated office project. The landlord claims REEC owes more than $2.9 million in ground rent at the property.