- Forty-one former Fannie Mae employees filed three suits seeking more than $2M each. They accuse CEO Priscilla Almodovar and FHFA Director Bill Pulte of defamation.
- The group says Fannie Mae fired them without notice or evidence of wrongdoing. Pulte later claimed they took “kickbacks” from the agency’s donation-matching program.
- The litigation adds pressure as the White House weighs a $30B IPO and possible merger of Fannie Mae and Freddie Mac.
The Dispute
In April, Fannie Mae dismissed more than 100 employees for what it called “unethical conduct”, per Bisnow. Forty-one of them now argue that Almodovar and Pulte committed defamation with public comments that damaged their reputations.
The employees say they lost their jobs during a Microsoft Teams call on April 2. Managers told them they had violated Fannie Mae’s charitable giving program but gave no evidence.
The Defamation Claims
Days later, Pulte told Fox News the workers had donated to charities and then received “kickbacks.” Almodovar praised Pulte for rooting out fraud in a joint release.
The lawsuits argue that both leaders’ comments crossed into defamation. Separate wrongful termination and breach-of-contract claims against Fannie Mae were filed in federal court in Washington, D.C.
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Political And Cultural Dimensions
Most of the fired staffers are of Indian nationality. Three Indian-American members of Congress questioned whether Fannie Mae targeted that group unfairly. They suggested donations to Indian-American nonprofits may have served as a pretext for the cuts.
Bigger Picture
Pulte took over FHFA in March and quickly reshaped Fannie Mae’s board. He has suggested merging Fannie Mae and Freddie Mac into one company. The White House is considering an IPO that could raise up to $30B and value the combined firm at $500B, one of the largest offerings ever.
Why It Matters
The lawsuits could shape how Fannie Mae handles oversight and public messaging. The stakes are especially high as political leaders debate the future of the nation’s mortgage giants.
