Firings at Fannie Mae

[Sadie]

Fannie Mae dismisses senior staff in another leadership purge​

Fannie Mae dismissed at least 10 senior executives this week in another wave of turnover at the government-sponsored mortgage investor.

A source with direct knowledge of the situation confirmed that the employees were based in the company’s Washington, D.C., headquarters and were terminated within a three-hour window on Wednesday. They attributed the layoffs to much of the work now being done by artificial intelligence.

The source also indicated that headcount reductions may continue, telling Scotsman Guide, “Who knows what the future will bring.”

Industry sources have expressed concern about the recent personnel changes.

“A brain drain of qualified, experienced people could adversely affect Fannie Mae’s ability to respond to market developments, monitor risk or execute on mortgage purchases — at a time of rising mortgage rates and continued homeownership affordability challenges,” noted one mortgage veteran.

https://www.scotsmanguide.com/news/fannie-mae-dismisses-senior-staff-in-another-leadership-purge/

 

[glenn walker]

Fannie Mae dismisses senior staff in another leadership purge​

Fannie Mae dismissed at least 10 senior executives this week in another wave of turnover at the government-sponsored mortgage investor.

A source with direct knowledge of the situation confirmed that the employees were based in the company’s Washington, D.C., headquarters and were terminated within a three-hour window on Wednesday. They attributed the layoffs to much of the work now being done by artificial intelligence.

The source also indicated that headcount reductions may continue, telling Scotsman Guide, “Who knows what the future will bring.”

Industry sources have expressed concern about the recent personnel changes.

“A brain drain of qualified, experienced people could adversely affect Fannie Mae’s ability to respond to market developments, monitor risk or execute on mortgage purchases — at a time of rising mortgage rates and continued homeownership affordability challenges,” noted one mortgage veteran.

https://www.scotsmanguide.com/news/fannie-mae-dismisses-senior-staff-in-another-leadership-purge/

10 is nothing for a operation that big most probably retirement age leaving anyways but a positive to much dead weight.

 

[J Grant]

“A brain drain of qualified, experienced people could adversely affect Fannie Mae’s ability to respond to market developments, monitor risk or ex

This is their rebuttal of why they were valuable and should not be fired. Yet it is exactly what they did to appraisers: their policy decisions to not use appraisals and instead allow the lender or a borrower to estimate the property value in a waiver. Allow a random person who took a 5-hour online course to do the inspection instead of an appraiser. What did Fannie call appraisers? A speed bump. Friction. Their own tolerance for this kind of risk and replacing qualified people with analytics or cheap gig hires laid out the argument for their own demise.

 

[TC]

“A brain drain of qualified, experienced people could adversely affect Fannie Mae’s ability to respond to market developments, monitor risk or ex

. Allow a random person who took a 5-hour online course to do the inspection instead of an appraiser.

I'd like to evidence of that.

 

[J Grant]

I'd like to evidence of that.

I was describing a PDR data collector. Their "professional training" seems to consist of taking a 5-6-hour online course, as far as I can tell.

 

[Sadie]

“A brain drain of qualified, experienced people could adversely affect Fannie Mae’s ability to respond to market developments, monitor risk or ex

This is their rebuttal of why they were valuable and should not be fired. Yet it is exactly what they did to appraisers: their policy decisions to not use appraisals and instead allow the lender or a borrower to estimate the property value in a waiver. Allow a random person who took a 5-hour online course to do the inspection instead of an appraiser. What did Fannie call appraisers? A speed bump. Friction. Their own tolerance for this kind of risk and replacing qualified people with analytics or cheap gig hires laid out the argument for their own demise.

I think it is true that there is a brain drain there. Look at all the recent decisions. The qualified people who understood the risk inherent in money lending and buying that debt as an investment are gone and we now have a transformed Fannie. The cr@p out forward as acceptable collateral verification did not come from the experienced staffers, this is all coming from Pulte, et al. The new head of Fannie is a technology officer from Morgan Stanley, and the head of Freddie is from Deloitte Consulting. No experience in governmental agencies. These guys did not learn coming up through the ranks, they are just yes men. Fannie began removing their appraiser staff during Trump 1 and have now pretty much completed the task, They are in bed with the AMCs, no surprise.

 

[Trihard]

I think it is true that there is a brain drain there. Look at all the recent decisions. The qualified people who understood the risk inherent in money lending and buying that debt as an investment are gone and we now have a transformed Fannie. The cr@p out forward as acceptable collateral verification did not come from the experienced staffers, this is all coming from Pulte, et al. The new head of Fannie is a technology officer from Morgan Stanley, and the head of Freddie is from Deloitte Consulting. No experience in governmental agencies. These guys did not learn coming up through the ranks, they are just yes men. Fannie began removing their appraiser staff during Trump 1 and have now pretty much completed the task, They are in bed with the AMCs, no surprise.

It goes back longer than that. Half of Wall Street and GSE management should have been jailed in 2008 for crashing the real estate market. Instead, they got a bailout from congress and they paid bonuses to the CEO's. They know they can do whatever they want and there will be no repercussions.

 

[Dublin ohio]

The cr@p out forward as acceptable collateral verification did not come from the experienced staffers, this is all coming from Pulte, et al.

The crap you are talking about was in place long before Pulte

 

[glenn walker]

No brain drain those old guys were in golden handcuffs just waiting to retire and get consultant gigs at the Money Center Banks or on K Street in DC were the easy moneys made.

 

[J Grant]

I think it is true that there is a brain drain there. Look at all the recent decisions. The qualified people who understood the risk inherent in money lending and buying that debt as an investment are gone and we now have a transformed Fannie. The cr@p out forward as acceptable collateral verification did not come from the experienced staffers, this is all coming from Pulte, et al. The new head of Fannie is a technology officer from Morgan Stanley, and the head of Freddie is from Deloitte Consulting. No experience in governmental agencies. These guys did not learn coming up through the ranks, they are just yes men. Fannie began removing their appraiser staff during Trump 1 and have now pretty much completed the task, They are in bed with the AMCs, no surprise.

The head guys don't fire themselves, but if they follow this administration's playbook, they will fire anyone below them, including senior staff who might stand up for integrity, even a mouse squeak of it. Though with #47 in charge, that could be an Orwellian double speak of accusing the 100 of fraud. Either way it is a shake up.