The news was initially disclosed by Semafor reporter Eleanor Mueller on the social media platform X and in a report on Politico. According to Politico, the information was provided by three individuals familiar with the situation who chose to remain anonymous due to the sensitivity of the personnel matters.
Although no further details have been disclosed, if accurate, it would signify the departure of Freddie CEO Diana Reid, who assumed the position in September. Freddie does not explicitly list a COO on its website.
One source informed HousingWire late Thursday night that Mike Hutchins had been appointed as the interim CEO following Reid’s termination.
Gina Cross, the COO of the FHFA, and HR director Monica Matthews were both placed on administrative leave, as reported by Politico.
“FHFA already serves as the conservator of Fannie Mae and Freddie Mac, with significant authority over their operations, so these terminations may not have a substantial impact,” stated Scott Olsen, the executive director of the Community Home Lenders of America. “Our focus moving forward is on crucial policies of Fannie and Freddie, as highlighted in our recent letter to FHFA – maintaining the GSEs’ presence and a diverse group of seller-servicer lenders.”
The reported terminations occurred shortly after the newly appointed FHFA Director Bill Pulte placed numerous employees at the GSEs on leave earlier in the day.
Earlier in the week, Pulte expressed concerns on Fox News about the low attendance of Fannie Mae employees at one office, with less than 40 out of over 2,500 employees showing up daily. He has mandated a return to the office for both GSEs.
Pulte recently revamped the boards of both GSEs, removing twelve members and appointing new ones. He also designated himself as the head of Fannie Mae and Freddie Mac’s boards.
On Thursday, Aaron Kofsky, a former staffer for Vice President J.D. Vance during his time in the Senate, reportedly joined FHFA to assist in restructuring the agency’s framework and workforce, as per a report from Bloomberg.
“Kofsky is currently assigned to the FHFA’s Division of Housing Mission and Goals, where he will contribute to decisions on reducing the division’s workforce,” the report stated based on conversations with its sources.
The news follows developments on Thursday, where Reid, along with Pulte, issued a directive that Freddie Mac employees must return to the office five days a week starting in May. This week, FHFA also shuttered two departments, resulting in a reduction of about 10% of its workforce, including in its Research and Statistics Division and its Division of Public Interest Examination (DPIE).
These actions at FHFA are seen as contributing to a sense of instability at the regulatory body, as noted in the Politico report.
“These events coincide with discussions within the administration regarding the potential privatization of the two large firms, a decision that could yield substantial gains for private investors but is met with opposition from many Democrats and others concerned about the impact on the housing finance market.”
This article is breaking news. Stay tuned for updates.