Fannie Mae Fires Hundreds for “Unethical Conduct”

Fannie Mae laid off more than 100 employees in recent weeks for alleged “unethical conduct.”

The Federal Housing Finance Agency, which regulates both Fannie and Freddie Mac, announced the firings on Tuesday. Bill Pulte — FHFA director and self-appointed chair of Fannie’s board of directors — said the staffing removals have happened since he was sworn in, which was less than a month ago.

“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,” Pulte said in a statement.

The three-paragraph release provided little in the way of details regarding what type of fraud the employees are being accused of committing. The FHFA did not immediately respond to a request for comment from The Real Deal.

There have also been recent reports from Indian publications TechStory, HRKatha and the Times of India claiming Fannie Mae laid off as many as 700 employees. Some of these firings reportedly targeted Telugu workers and were allegedly over charitable donation irregularities. Fannie and the FHFA have not commented on those reports.

Fannie and Freddie have been in a state of chaos since Pulte took over. In his first week, he ousted more than a dozen board members at the two companies and installed himself as the chair of both boards. He also placed dozens of agency employees on administrative leave.

The federal government also appears to be laying the groundwork to release Fannie and Freddie from its grip. It’s unclear what impact this could have; Fannie and Freddie support approximately 70 percent of the country’s mortgage market, according to the National Association of Realtors.