Fannie Mae Ethics Staffers Fired In Latest Staff Shake-Up
Roughly a dozen people in Fannie Mae’s ethics unit were fired Thursday without explanation, marking the latest in a series of dismissals at the agency under Federal Housing Finance Agency Director Bill Pulte.
The staffers were part of a team that investigates complaints that come through a tip line, The Wall Street Journal reported. Those investigations include allegations of internal fraud or illegal use of funds.
Fannie Chief Ethics Officer Suzanne Libby and General Counsel Danielle McCoy also stepped down under pressure, the Journal reported, citing an anonymous source.
Pulte and others at Fannie believed that many of the investigations carried out by the unit were related to diversity, equity and inclusion, according to the WSJ. Pulte posted on social media Friday a photo of a gravestone with the words “Fannie Mae DEI R.I.P.” superimposed.
He also indicated on Thursday that the dismissals were part of a reduction in force and that 62 people were laid off from the agency.
Staff shake-ups have been the name of the game at the FHFA in the second Trump administration.
Pulte began his tenure as the head of the FHFA by firing more than 100 staffers for what he said was unethical conduct, implying in a release at the time that the employees had engaged in fraud. Months later, those workers haven’t been given more information about the reasons for their dismissal, The Washington Post reported Friday.
In August, 41 of the fired employees sued former Fannie Mae CEO Priscilla Almodovar for defamation, seeking more than $2M each. Almodovar herself abruptly left the agency last week, with Chief Operating Officer Peter Akwaboah serving as interim CEO.
Along with President Donald Trump, Pulte has accused Federal Reserve Governor Lisa Cook of mortgage fraud and called for her resignation. Trump attempted to fire Cook but was stopped from doing so by a court ruling.
The Trump administration is reportedly preparing an initial public offering for Fannie Mae and Freddie Mac, which have been under government conservatorship since the Global Financial Crisis.
An offering would privatize the agencies, a long-held goal of the president, who in August was reportedly weighing a possible $30B IPO.
