Over 100 employees of Fannie Mae have been fired after allegedly engaging in unethical conduct, the U.S. Federal Housing Finance Agency (FHFA) and Fannie Mae announced Tuesday.
Bill Pulte, the director of the FHFA who also chairs the boards of the GSEs, posted an official announcement regarding the firings on social media platform X on Tuesday afternoon.
“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,” said Pulte. “Since my swearing-in, we fired over 100 employees from Fannie Mae who we caught engaging in unethical conduct, including facilitating fraud, against our great company. Anyone who commits fraud against Fannie Mae does so against the American people.”
His statement appears to at least partially confirm reports that workers at the GSE took advantage of a matching grants program.
Per The Times of India, the affected employees allegedly colluded with nonprofit organizations like Telugu Association of North America (TANA) to deceive companies.
Various Indian outlets reported that Fannie Mae laid off as many as 700 U.S.-based employees. TechStory, HRKatha and the Times of India claim that the employees were fired within the first few days of April and of the 700, 200 are workers who speak the Telugu language, which is primarily spoken in the Indian states of Andhra Pradesh and Telangana.
HousingWire reached out to representatives of both the FHFA and Fannie Mae, but did not receive a response.
Pulte has made a series of big changes to the GSEs since being confirmed by the Senate last month. In mid-March, Pulte removed several members of the boards of directors at both Fannie Mae and Freddie Mac and installed himself as board chair of both companies. He also fired several executives at the FHFA and agencies, including Freddie Mac Chair Diana Reid.
Priscilla Almodovar, an appointee under Joe Biden, has remained, at head of Fannie Mae, however.
“I would like to thank Director Pulte for his empowering of Fannie Mae to root out unethical conduct, including anyone facilitating fraud. We hold our employees to the highest standards, and we will continue to do so,” said Almodovar.
