Reports indicate that Laurel Davis, the senior vice president in charge of the mission and impact department, was among those affected by the recent staff cuts at the ESG team. Sources have revealed that the entire ESG team staff were placed on administrative leave.
Despite attempts to reach out to representatives at Fannie Mae and the Federal Housing Finance Agency (FHFA), no immediate response was received.
It is estimated that over 30 members of the ESG team, part of the broader Mission Team alongside Duty to Serve and Goals, were let go last Friday. The ESG program, although not mandatory by charter, saw significant staff reductions. Additionally, Danny Gardner, the SVP of Mission and Community Engagement at Freddie Mac, was also reportedly let go earlier this month.
These staff cuts come in the wake of the Trump administration’s dismantling of initiatives related to diversity, equity, inclusion (DEI), and climate mandates. FHFA Director Bill Pulte has been leading the charge to remove DEI-based initiatives from the agency and the GSEs, although his direct involvement in the dismissal of the ESG team remains unclear.
Following recent changes in leadership at both GSEs, including the termination of Freddie Mac head Diana Reid, Pulte indicated on social media that there would be no further executive leadership changes at Fannie Mae and Freddie Mac. Instead, the focus will shift towards growth, affordability, combating mortgage fraud, and providing career opportunities.
Pulte has also sought feedback from users on improving the functions of the GSEs, emphasizing the development of new programs and products. Earlier this month, he revoked two policy orders related to DEI and expressed his commitment to reforming Fannie Mae and Freddie Mac to better serve the American people.
Chairing the boards of both GSEs, Pulte has rolled back climate initiatives introduced during the Biden presidency and mandated a return to office for employees at both companies.