Major Changes at Fannie Mae and Freddie Mac: ESG Team Layoffs
Layoffs in the ESG Division
Recent reports indicate significant layoffs within Fannie Mae, impacting the Environmental, Social, and Governance (ESG) team. Laurel Davis, who held the position of senior vice president and led the company’s mission and impact initiatives, is among those affected. Sources reveal that the ESG staff was placed on administrative leave as part of these cuts, which reportedly involved more than 30 team members.
Context and Previous Changes
The layoffs coincide with broader policy shifts initiated by the Federal Housing Finance Agency (FHFA) under the direction of Bill Pulte. Earlier this month, Danny Gardner, senior vice president of mission and community engagement at Freddie Mac, was also terminated, signaling a significant transformation in leadership and company direction.
These changes seem aligned with the Trump administration’s earlier efforts to dismantle various diversity, equity, and inclusion (DEI) initiatives and climate-focused mandates previously established.
Leadership Goals and Future Focus
Pulte has expressed a commitment to shift the focus of both Fannie Mae and Freddie Mac towards growth and improving affordability in the housing market. On social media, he stated, “Our focus will now turn to growth, making homes more affordable, rooting out mortgage fraud, & providing great career opportunity to those who make Fannie & Freddie great American Icons, again!”
In this context, he has solicited feedback from users about innovative ideas and programs to enhance the efficiency of the GSEs.
Policy Revisions and Future Direction
Recent actions by Pulte include rescinding two key policy orders that targeted DEI efforts and a clear push to rectify what he describes as “bloat” and “excessive spending” within the organizations. He emphasizes a new direction aimed at ensuring Fannie Mae and Freddie Mac serve the public effectively and remain financially sound.
Furthermore, Pulte has revoked several climate initiatives launched during the Biden administration, indicating a firm reorientation of these organizations’ operational strategies.
