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4 hours ago
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Government-sponsored enterprise (GSE) Fannie Mae has reportedly laid off as many as 700 employees, with 200 of the layoffs focused on members of the Telugu-speaking community over “irregularities” uncovered related to charitable donations.
According to reports from outlets including TechStory, HRKatha and the Times of India, 700 U.S.-based employees were fired within the first few days of April, including 200 workers who speak the Telugu language, which is primarily spoken in the Indian states of Andhra Pradesh and Telangana.
The reports cite an announcement from the company claiming that the layoffs occurred due to ethical violations stemming from Fannie Mae’s “matching gifts program,” which the company previously described as a method for employees to “double the financial impact of their eligible donations through our matching gifts program up to a maximum of $5,000 annually.”
No official, public-facing announcements concerning the layoffs have been posted to Fannie Mae’s website, nor were any press releases distributed to the media about the move. But the prior reporting states that following an internal investigation, Fannie Mae determined that the matching gifts program was being used inappropriately by the employees it dismissed.
Some 400 of the firings took place on April 3 with an additional 300 happening the next day, the reports said, with Fannie Mae reportedly stating “that these actions were necessary to address irregularities uncovered in its internal investigations. The company emphasized its commitment to ethical practices and accountability, highlighting the importance of maintaining trust within its operations,” according to the TechStory report.
The Times of India added that that “some employees are alleged to have colluded with non-profit organizations like Telugu Association of North America (TANA) to deceive companies.”
HousingWire reached out to representatives of both the Federal Housing Finance Agency (FHFA) and Fannie Mae for additional details, but did not receive an immediate response.
FHFA Director Bill Pulte has made a series of sweeping changes to the GSEs since being confirmed for his role by the Senate. In mid-March, Pulte removed several members of the boards of directors at both Fannie Mae and Freddie Mac, installing himself as board chair of both companies.
Pulte has also alluded to undertaking holistic reviews of remote work policies and payment schedules, but also revealed that he would not move to cut conforming loan limits at either of the GSEs. Democratic senators have also recently questioned the legality of his moves at both FHFA and the GSEs.
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