WASHINGTON—More than 100 employees of Fannie Mae have been terminated over alleged fraud. The agency said the firings followed an internal investigation.
“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, director of the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae, 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.”
Since taking office Pulte has said eliminating fraud and creating operational efficiencies are top priorities for the two government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac.
“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,” Priscilla Almodovar, president and CEO of Fannie Mae, in a statement.
Drawing Scrutiny
National Mortgage Professional reported, however, that the terminations have also drawn scrutiny from federal investigators, especially given recent reports that some of the employees involved were connected to a network of Telugu-speaking organizations flagged for irregularities.
