Fannie Mae has undertaken another significant workforce reduction, dismissing 62 employees across multiple departments. The mortgage finance firm announced these terminations on Thursday, affecting crucial operational areas including information technology, diversity initiatives, and general business functions. Bill Pulte, director of the Federal Housing Finance Agency (FHFA), confirmed the organizational changes, describing them as essential streamlining measures.
Strategic Realignment Targets Key Divisions
The restructuring has particularly impacted the company’s ethics and internal investigations unit, with approximately a dozen staff members from this department being released. This development follows the recent departures of both the Chief Ethics Officer and General Counsel within recent weeks.
FHFA Director Pulte has characterized these cuts as standard organizational practice, aimed at eliminating roles not directly supporting Fannie Mae’s primary mortgage and real estate operations. Through social media communications, he emphasized the necessity to address “waste, fraud, and abuse” while terminating diversity, equity, and inclusion programs at the government-sponsored enterprise.
Leadership Transition Adds to Organizational Shifts
These personnel changes represent the latest development in Fannie Mae’s ongoing transformation. The company experienced a surprising leadership transition last week when President and CEO Priscilla Almodovar abruptly departed. Chief Operating Officer Peter Akwaboah has assumed interim leadership responsibilities during this period.
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The FHFA is actively driving this comprehensive restructuring. Pulte has appointed himself as Chairman of Fannie Mae’s board of directors. These movements align with the Trump administration’s stated objective to conclude the federal conservatorship of both Fannie Mae and Freddie Mac, which has remained in effect since the 2008 financial crisis.
Privatization Timeline Emerges
Market observers are now speculating about a potential public offering timeline. Pulte indicated this week that an initial public offering could occur during the first or second quarter of 2026. The current organizational streamlining is widely viewed as preparatory work for this eventual privatization.
Despite Fannie Mae reporting substantial third-quarter 2025 net earnings of $3.9 billion, some market analysts anticipate potential earnings challenges ahead. Investors are preparing for additional management and operational adjustments as the company navigates this profound transformation under regulatory supervision.
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