Updates on Structural Changes at FHFA and the GSEs

This week, the Federal Housing Finance Agency (FHFA) and newly-confirmed Director Bill Pulte have made a number of structural changes to the agency, and at Fannie Mae and Freddie Mac, whom FHFA regulates. On Monday, Director Pulte removed 14 board members from the boards of Fannie and Freddie and installed himself as chairman. The board departures included members dedicated to core mission activities, accountability, and technology. Joining the board, in addition to Director Pulte, are members from hedge funds, the current general counsel at FHFA Clinton Jones, and others in the real estate and technology fields. The board shakeup gives Director Pulte even more control over the GSEs and their activities.

Following the board announcements, the Director has also begun removing probationary employees, others working on “non-statutory” efforts at FHFA, including staffers from research and statistics teams. Over 10% of the agency staff have been let go in the last two days; there are reports the Director will bring in 20 or more political appointees to fill gaps. Additionally, FHFA staff have received a return-to-office directive. It was also reported yesterday that the Director and the CEO of Freddie Mac have also ordered a return-to-office mandate for the company. We would expect a similar move to occur at Fannie Mae, though the company has prioritized remote work for employees since the pandemic and  many staff live and work outside the region.

NAR continues to monitor the evolving situations at FHFA. Maintaining a robust, liquid, and efficient housing finance system remains a top priority for NAR and we will continue prioritize policies and strategies that assist housing affordability and the increase of housing supply.