Fannie Mae is undergoing significant turmoil in its senior ranks, with about a dozen officials from its ethics and internal investigations unit being fired. These dismissals follow recent leadership changes, including the departure of Suzanne Libby, Fannie Mae’s chief ethics officer, and the resignation of Danielle McCoy, who served as general counsel, both reportedly under pressure from leadership. The terminations occurred after a virtual meeting where officials were informed they were being let go without a stated reason.
These organizational changes are occurring as the Trump administration considers an initial public offering (IPO) for Fannie Mae. The Federal Housing Finance Agency (FHFA) director, Bill Pulte, who oversees Fannie Mae, has been instrumental in this shake-up. Pulte publicly stated that Diversity, Equity, and Inclusion (DEI) initiatives are "dead" at Fannie Mae, and he and other leaders were reportedly frustrated with investigations perceived as focusing too heavily on DEI-related allegations. The ethics team's role included investigating complaints such as internal fraud and the misuse of funds.
The dismissals are part of broader reductions, with Pulte later stating 62 people were cut in what he described as a "standard business layoff." These events have drawn condemnation from Democrats, with Senator Elizabeth Warren alleging Pulte is "weaponizing his role to do Donald Trump’s bidding." Pulte has also been linked to investigations into alleged mortgage fraud by Trump critics, including New York Attorney General Letitia James, who has been indicted on federal charges and pleaded not guilty. Notably, Fannie Mae officials who were fired had been investigating whether Pulte improperly accessed mortgage records of Democratic officials, including James. The probe was referred to the FHFA’s Office of Inspector General and later to the U.S. attorney’s office in eastern Virginia, which is handling James's criminal case.
The shake-up has also impacted the representation of women in leadership roles at Fannie Mae. Following Pulte's appointment, several women in senior executive positions and on the board have exited. Bisnow analysis indicates that women's share in senior staff roles at Fannie Mae has decreased to less than 46% from a previous two-thirds in 2024, although this still remains higher than the industry average of 31% for lenders. The Trump administration's broader goal is to realign Fannie Mae and Freddie Mac with Republican priorities, potentially including a privatization that could involve combining the two entities into a "Great American Mortgage Corp." and offering 5% to 15% of their stock in an IPO that could raise up to $30 billion and value the firms at roughly $500 billion.
