Key Takeaways:
The dismissals strip Fannie Mae of its chief economist and multifamily leadership at a moment when its own forecasts project deteriorating mortgage conditions through 2027.
Fannie Mae dismissed roughly 12 senior executives Wednesday, stripping the mortgage giant of its chief economist and multifamily leadership as FHFA Director Bill Pulte's restructuring accelerates, raising questions about its capacity to manage market risk.
"Technology continues to advance, creating opportunities to remove unnecessary processes, but sometimes that unfortunately involves people," Pulte said in response to the dismissals.
The terminations, delivered within a three-hour window at the company's Washington headquarters, included Mark Palim, chief economist since early 2025; Chuck Walker, chief operating officer of the multifamily business; Devang Doshi, senior vice president of capital markets; Brian Hansen, chief financial officer of multifamily; and Dana Brown, vice president of low-income housing tax credit customer management. The cuts follow roughly 1,200 job reductions in 2025, about 15 percent of the workforce, and the ouster of 14 board members in March 2025.
The departures come as Fannie Mae's Economic and Strategic Research Group — until this week led by Palim — projects significantly worse mortgage market conditions through 2026 and into 2027. A global bond selloff this week pushed Treasury yields higher, forcing the U.S. Treasury to take rare intervention steps. With Fannie Mae and Freddie Mac guaranteeing repayment on roughly half of all U.S. mortgages, the loss of experienced personnel could impair the institutions' ability to price risk and maintain liquidity in the $12 trillion mortgage market.
Since taking the FHFA helm in 2025, Pulte has moved aggressively to reshape both government-sponsored enterprises. He removed 14 board members across Fannie and Freddie, appointed himself chairman of both boards, and pushed for public listings of the two companies. Last year, he fired both CEOs — Priscilla Almodovar stepped down from Fannie Mae in October after serving since 2022, replaced by acting CEO Peter Akwaboah. Nancy Jardini, Fannie's chief compliance and ethics officer, was also dismissed early in the campaign.
Pulte recently concluded a stint as acting director of national intelligence, a dual role that had divided his attention within the Trump administration.
Industry sources have expressed concern about the personnel changes. "A brain drain of qualified, experienced people could adversely affect Fannie Mae's ability to respond to market developments, monitor risk or execute on mortgage purchases — at a time of rising mortgage rates and continued homeownership affordability challenges," one mortgage veteran told Scotsman Guide.
The layoffs also coincide with broader technology-driven restructuring. Sources attributed some of the reductions to work now being handled by artificial intelligence, and Fannie Mae — like other financial institutions — is developing strategies to address AI-related cybersecurity risks.
The combination of executive turnover, rising borrowing costs, and a volatile bond market creates a challenging environment for the housing finance system. Fannie Mae has not responded to multiple requests for comment, and sources indicate further headcount reductions may follow.
This article is for informational purposes only and does not constitute investment advice.
