Overview
- Recent reporting says Fannie Mae investigators examined complaints that senior FHFA officials directed staff to retrieve mortgage documents for Democratic figures, including New York Attorney General Letitia James.
- The internal probe was elevated to the FHFA inspector general and then referred to the U.S. attorney’s office in the Eastern District of Virginia, according to people familiar with the matter.
- About a dozen ethics and investigations staff were removed, chief ethics officer Suzanne Libby was ousted, and general counsel Danielle McCoy resigned under pressure, while acting FHFA IG Joe Allen was asked to step down.
- FHFA has denied the accounts as false and defamatory, and Pulte publicly framed the October layoffs as ending diversity, equity and inclusion initiatives, posting, “DEI HAS PASSED AWAY AT FANNIE MAE.”
- Industry figures and housing finance experts warn the shakeup is undermining confidence in FHFA’s governance and complicating prospects for any push to take Fannie Mae and Freddie Mac public.