US mortgage giant Fannie Mae dismisses a dozen senior executives | ABC Color (PY) Article ID: 01M0KAKW18RC94SQHWHPMZ6H89

Fannie Mae, a government-sponsored mortgage giant in the United States, has recently laid off about a dozen senior executives. The news, reported by The Wall Street Journal citing sources familiar with the matter, has raised concerns about the company's ability to maintain stability in housing prices and real estate activity.

Fannie Mae, along with Freddie Mac, plays a crucial role in the U.S. mortgage market, guaranteeing half of all mortgages by purchasing loans from lenders and selling them to investors. The recent dismissals impact leadership roles across critical departments, including multifamily housing loans, investments in low-income housing tax credits, finance, regulatory affairs, and communications.

Bill Pulte, director of the Federal Housing Finance Agency (FHFA) overseeing Fannie Mae, indirectly addressed the layoffs, linking them to the efficiency gains brought by technology. "Technology is improving and giving us opportunities to eliminate unnecessary processes and, unfortunately, sometimes, personnel," Pulte stated on his X account shortly after the WSJ report, without directly referencing the Fannie Mae firings.

These changes at Fannie Mae occur amidst significant sales of U.S. Treasury bonds, which have pushed 30-year government debt yields to highs not seen since 2007. Pulte has previously initiated leadership changes at both Fannie Mae and Freddie Mac, including appointing himself chairman of their boards and dismissing their CEOs. The recent executive layoffs signal further restructuring within the influential mortgage finance companies.

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Technology is improving and giving us opportunities to eliminate unnecessary processes and, unfortunately, sometimes, personnel.