The news originally surfaced through a post by Semafor reporter Eleanor Mueller on the social media platform X and was further detailed in a report by Politico. According to Politico’s sources, three individuals familiar with the situation disclosed the information under the condition of anonymity due to the sensitive nature of the personnel issues.
Although specific details were not provided, if accurate, this development would signify the departure of Freddie CEO Diana Reid, who assumed the position in September. Notably, Freddie Mac does not explicitly list a Chief Operating Officer on its official website.
A source informed HousingWire late Thursday night that Mike Hutchins had been appointed as the interim CEO following Reid’s termination.
In addition, Gina Cross, the COO of the FHFA, and HR director Monica Matthews were both placed on administrative leave, as reported by Politico.
Scott Olsen, the executive director of the Community Home Lenders of America, commented on the situation, stating, “FHFA already serves as the conservator of Fannie Mae and Freddie Mac, wielding extensive authority over their operations. Therefore, these terminations are not expected to bring significant changes. Moving forward, CHLA is focusing on crucial policies of Fannie and Freddie, such as those outlined in our recent letter to FHFA – emphasizing the maintenance of the GSEs’ market presence and a diverse group of seller-servicer lenders.”
The reported terminations occurred shortly after the newly appointed FHFA Director Bill Pulte put numerous employees at the Government-Sponsored Enterprises (GSEs) on leave earlier in the day.
Recently, Pulte expressed concerns on Fox News regarding the low attendance of Fannie Mae employees at one of their offices, prompting him to mandate a return-to-office policy for both GSEs.
Pulte has initiated significant changes by reshuffling the boards of both GSEs, replacing several members and assuming leadership roles in Fannie Mae and Freddie Mac’s boards.
Furthermore, former Vice President J.D. Vance staffer Aaron Kofsky reportedly joined the FHFA to assist in restructuring the agency’s framework and workforce, as per a report from Bloomberg.
According to the report, Kofsky is currently involved in the FHFA’s Division of Housing Mission and Goals, playing a key role in determining staff reductions within the division.
The recent developments at FHFA include Reid and Pulte’s joint announcement mandating a return-to-office policy for Freddie Mac employees starting in May. Additionally, FHFA closed two departments this week, resulting in a reduction of about 10% of its workforce, particularly in the Research and Statistics Division and the Division of Public Interest Examination (DPIE).
These changes have contributed to a sense of disruption within the regulatory agency, as highlighted in the Politico report.
The ongoing discussions about potentially privatizing the GSEs have raised concerns among various parties. While privatization could lead to financial gains for private investors, it is met with opposition from many Democrats and other stakeholders who fear its impact on the housing finance market.
This article is based on breaking news. Stay tuned for further updates.