TerryRohrer
Elite Member
- Joined
- Aug 13, 2005
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- Certified General Appraiser
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Fannie Mae Hit by Turmoil in Senior Ranks as Roughly 12 Executives Are Let Go
The departures are raising concerns about stability inside the government mortgage giant
Fannie Mae let go roughly a dozen high-ranking officials this week, raising concerns about turmoil at the government mortgage giant, according to reporting from The Wall Street Journal, citing people familiar with the matter.Word of the senior departures spread across the industry Friday, creating worries that Fannie’s ability to provide stability to prices and activity could be hampered. Several officials were notified Wednesday that their positions had been eliminated, some of the people said.
The eliminated jobs included executives from units for multifamily loans and low-income housing tax credit, as well as finance, regulatory and communications officials, the people said. This week’s departures include many of the company’s top leaders, the people familiar with the matter said.
Fannie Mae and Freddie Mac play a pivotal role by buying up mortgages and packaging them to sell to investors, guaranteeing the investors payments even if borrowers default. This empowers U.S. lenders to make more 30-year fixed-rate mortgages.
"Technology is improving and providing opportunities for us to remove unnecessary processes and unfortunately at times personnel," Bill Pulte, the head of the Federal Housing Finance Agency, which oversees Fannie Mae, posted on social media after report.
