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Fannie Mae cuts senior staff tied to multifamily lending
The cuts reportedly included executives overseeing multifamily loans and low-income housing tax credit investments, raising questions among lenders about mortgage price stability.
Multifamily lenders that work with Fannie Mae are reportedly worried about business continuity after the government-sponsored enterprise eliminated roughly a dozen senior staff last week, according to Bisnow. The reductions, the Wall Street Journal reported, included executives who handled multifamily loans and low-income housing tax credit investments, along with staff in finance, regulatory, and communications. News of the departures has rattled some mortgage-industry executives who fear the changes could affect Fannie Mae's ability to provide price stability in the mortgage market, the WSJ said.
Bisnow reported that a person familiar with the staffing moves linked the departures to new technology solutions and increased efficiency, adding that positions were planned to be transitioned as part of redundant efforts. Fannie Mae leadership, overseen by the Federal Housing Finance Agency led by Bill Pulte, also pointed to internal efficiency changes, with Pulte posting that the agency did not have concerns about continuity of operations.
The staffing changes come amid broader leadership turnover at the GSE. Bisnow noted that less than a week after the Senate confirmed Pulte, eight Fannie Mae board members left and were replaced by Pulte appointees, and that Fannie Mae swapped CEOs in October when Priscilla Almodovar resigned and Peter Akwaboah took over.