WASHINGTON–The director of the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, said a handful of employees at the government-sponsored enterprises (GSEs) have been discovered to actually work for China and North Korea.

According to several media reports, the FHFA has referred at least five GSE employees to the Department of Justice.

“Wee’ve…recently criminally referred some North Koreans and Chinese for working inside of Fannie Mae and Freddie Mac,” FHFA Director Bill Pulte told Bloomberg. “I mean, what are the Chinese and the North Koreans doing in these companies?

‘Non-Citizens’ Working

“There were non-citizens working who were posing as either real Americans, or in some cases contractors,” Pulte continued. “And we also recently uncovered some other things where some of the Indians were also working inside of the companies as well.”

This could be a reference to recent staff cuts at Fannie Mae, where roughly 100 employees were fired for unethical behavior, as the CU Daily reported here, stemming from a matching grants program, HousingWire reported.