Just weeks after his confirmation as Director of the Federal Housing Finance Agency (FHFA), Bill Pulte is making swift moves to root out fraud and restore trust in the federal housing system. In a decisive action underscoring his zero-tolerance stance, Fannie Mae announced on April 8 that it has terminated over 100 employees for unethical conduct — including facilitating fraud — in an internal investigation initiated under Pulte’s leadership.
The sweeping action is part of Pulte’s top priority since assuming office: eliminating fraud and ensuring operational efficiency at government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. Contrary to expectations that Pulte’s main focus would be on removing the GSEs from government conservatorship, he has instead homed in on cleaning house and reinforcing institutional integrity.
“In President Trump’s housing market, there is no room for fraud, mortgage fraud, or any other deceitful act that can jeopardize the safety and soundness of the housing industry,” said Pulte in the official joint statement from FHFA and Fannie Mae. “Anyone who commits fraud against Fannie Mae does so against the American people.”
Fannie Mae CEO Priscilla Almodovar credited Pulte’s leadership in initiating the crackdown. “We hold our employees to the highest standards, and we will continue to do so,” she said, adding that the agency is committed to rooting out unethical behavior at every level.
The terminations have also drawn wider scrutiny from federal investigators, especially given recent reports that some of the employees involved were connected to a network of Telugu-speaking organizations flagged for irregularities, as reported by HR Katha.
The agencies declined to provide additional details in response to NMP's inquiries.
However, Pulte took to his personal X account on Monday to reiterate his commitment to rooting out misconduct. “We are turning around Fannie Mae and Freddie Mac, slowly but surely,” he wrote.
Reports Tie Dismissals to Alleged Grant Misuse
Though neither Fannie Mae nor the FHFA specified the reasons behind the terminations, media reports have pointed to an alleged abuse of the agency’s employee matching grants program. According to a Times of India report, approximately 700 employees have been laid off from Fannie Mae this year, with about 200 dismissed on “ethical grounds.” The report alleges that some staff collaborated with nonprofit organizations, including the Telugu Association of North America (TANA), to misuse the program.
Telangana Today, a regional Indian news outlet, reported that individuals tied to TANA and the American Telugu Association — including a regional vice president and the spouse of a former president — were among those terminated in connection with the alleged scheme.
The grant matching program, designed to support charitable giving by employees, allows for corporate contributions to be made in tandem with individual donations. Similar programs have faced scrutiny in other major organizations. Earlier this year, Apple reportedly dismissed over 100 employees for allegedly exploiting its own version of the initiative.
Since taking the helm, Pulte has consistently used his social media platform to call for a crackdown on fraud across the housing finance system. In a March 14 post, he wrote that “eliminating mortgage fraud and fraud in general will be a main focus at Fannie, Freddie, and the Federal Home Loan Banks.”
