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Fannie Mae has confirmed the dismissal of over 100 employees, citing unethical conduct, including facilitation of fraud, in a joint statement from the entity and the Federal Housing Finance Agency (FHFA) Tuesday.
Previous reporting from the Times of India had put the number of layoffs as high as 700, with 200 directly related to an internal investigation that found what Fannie Mae described as “irregularities” within the company and occurring during two days, April 3 and 4.
The focus of the probe centered on the GSE’s Matching Gifts program, which allows staff to “contribute to a cause or organization of their choice through employee giving” and “double the financial impact of their eligible donations … up to a maximum of $5,000 annually,” the company’s website stated.
TechStory reports that the scheme allegedly involved employees making donations to Telugu Association of North America (TANA), which then donated amounts back to the employees while retaining the matched funds from Fannie Mae. In some cases, employees are also said to have requested extra commission in exchange for taking part in the arrangement.
“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,” William J. Pulte, chairman of the board of directors of Fannie Mae, said in a statement. “Since my swearing-in, we fired over 100 employees from Fannie Mae who we caught engaging in unethical conduct, including facilitating fraud, against our great company. Anyone who commits fraud against Fannie Mae does so against the American people.”
While some staff reductions were expected as part of the company’s restructuring, some of the terminated employees — primarily from the Telugu-speaking community of Indian origin — were allegedly involved in a coordinated effort with nonprofit organizations, including TANA, to submit fraudulent donation match requests.
Among those reportedly dismissed were the vice president of TANA and the spouse of a former president of the American Telugu Association (ATA).
“I would like to thank Director Pulte for his empowering of Fannie Mae to root out unethical conduct, including anyone facilitating fraud. We hold our employees to the highest standards, and we will continue to do so,” Fannie Mae President and Chief Executive Officer Priscilla Almodovar said.
In a similar incident, The Santa Clara County [California] District Attorney’s Office in December announced that it had charged six former employees of Apple Inc. for allegedly defrauding Apple’s Matching Gifts Program. Executives at two charities — American Chinese International Cultural Exchange (ACICE) and Hop4Kids — were accused of returning donations to employees but kept Apple’s matching funds for themselves, prosecutors alleged.
Apple fired around 50 employees from its Cupertino headquarters in the wake of the charges, the International Business Times (IBT) reported in January.
“Reports suggest that many of the fired employees are of Indian origin, with some allegedly connected to Telugu community organizations in the U.S., although this detail has not been confirmed by authorities,” IBT reported.
These sweeping personnel changes by Fannie Mae come as part of a broader shakeup under Pulte, who was recently confirmed by the Senate.
Since taking office, Pulte has placed dozens of employees on leave, removed 14 board members and dismissed top executives across both Freddie Mac and the FHFA.
Pulte continues to address ongoing changes on social media, recently posting on X, “For years, Fannie Mae and Freddie Mac have been filled with bloat, excessive spending, and worse – that ends now…” He also emphasized cutting what he referred to as “consulting contracts that waste money” and “DEI nonsense,” promising a refocus on affordability and fiscal responsibility.
This story has been updated to reflect the confirmed number of Fannie Mae employees who have been dismissed. Previous reporting stated 700 employees, which Fannie Mae’s announcement has now placed at 100 employees. The story has also added a statement from Fannie Mae regarding the incident, received subsequent to publication.
