Fannie Mae shakeups continue with ‘unethical conduct’ firings 

While much of the news this past week has centered around President Trump's tariffs and the effects on the stock market, there has been other significant activity in Washington, D.C., as FHFA Director William Pulte continues to make big changes at Fannie Mae and Freddie Mac.

The Federal Housing Finance Agency announced April 8 that it had fired more than 100 Fannie Mae employees for "unethical conduct," including facilitating fraud, since Pulte took the helm in March.

"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, who appointed himself as chairman of the boards of directors of Fannie Mae and Freddie Mac soon after stepping into the leadership role at at the FHFA.

The news release did not provide details about the nature of the alleged fraud. The FHFA declined to comment further when contacted via email by Real Estate News.

Eliminating 'waste' at Fannie and Freddie: The news of the firings follows a series of posts Pulte made on X highlighting other cuts at the agencies he oversees. Pulte said Fannie Mae has already saved $6.4 million by eliminating programs related to climate change and diversity. 

"Consulting contracts that waste money and other DEI nonsense is being stripped away," Pulte wrote on April 7, noting that "Freddie Mac spent $9 million on DEI last year — we are eradicating it and returning the $9 million to better uses that actually make homes more affordable."

Edging closer to privatization? The latest moves continue a string of steps that appear to be laying the groundwork for eventually privatizing the two government-sponsored enterprises (GSEs). That includes recently overhauling the boards at both Fannie and Freddie. 

While the two GSEs aren't directly involved in a homebuyer's loan, the organizations back the financing while influencing loan offerings and rates. If both companies are privatized, and loans are no longer subject to government regulations and guarantees, that could lead to higher mortgage rates, although rates could drop in the long term if the change increases efficiency and reduces regulatory fees.

HUD scrutinizing payments: In other D.C. news, Stephen Begg, the acting inspector general of the U.S. Department of Housing and Urban Development, laid out several goals for the agency during an April 8 congressional hearing. One focus is reducing improper payments, which he characterized as a longstanding and significant problem.

"Without sufficient data, HUD struggles to monitor and assess whether taxpayer dollars are misspent and if the programs produce the intended results for the beneficiaries," Begg said during his testimony.

He also noted that HUD is working on putting new procedures in place to improve health and safety deficiencies at HUD-assisted properties.

Correction: An earlier version of the story misstated Stephen Begg's title. He is acting inspector general of HUD.