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The news was first reported by Semafor reporter Eleanor Mueller on social media platform X as well as in a report on Politico. Politico reported the findings based on three people with knowledge of the situation who requested anonymity to discuss sensitive personnel matters.
No other details were reported, but if true it would mean the departure of Freddie CEO Diana Reid, who was appointed to the role in September. Freddie doesn’t specifically list a COO on its website. Dennis Hermonstyne Jr., is listed as the chief compliance officer, Anil Hinduja, the chief risk officer, and Jim Whitlinger is chief financial officer. Freddie’s head of HR is Dionne Wallace Oakley.
Gina Cross, the COO of the FHFA, was placed on administrative leave, as was HR director Monica Matthews, per Politico.
“FHFA is already conservator of Fannie Mae and Freddie Mac, with virtually unlimited power over their operations, so these firings don’t really change much,” said Scott Olsen, executive director of the Community Home Lenders of America. “Instead, CHLA is focused, going forward, on the key policies of Fannie and Freddie, like the ones identified in our letter to FHFA earlier this week – maintaining the GSEs’ footprint and a broad base of seller-servicer lenders.”
The reported firings come shortly after newly installed FHFA Director Bill Pulte placed dozens of employees at the GSEs on leave earlier in the day.
Earlier this week, he took to Fox News to complain that fewer than 40 of Fannie Mae’s 2,500-plus employees at one office were showing up at the office every day. He is mandating a return to work at both GSEs.
Pulte recently flipped the boards of both GSEs, ousting a dozen members and installing new ones. He also appointed himself the head of Fannie Mae and Freddie Mac’s boards.
Also on Thursday, a former staffer for Vice President J.D. Vance from his time in the Senate — Aaron Kofsky — reportedly joined FHFA in a capacity to assist with overhauling the agency’s structure and workforce, according to a report from Bloomberg.
“Kofsky is currently assigned to the FHFA’s Division of Housing Mission and Goals, where he’ll help direct decisions about reducing the division’s staff,” the report said based on conversations with its sources.
The news follows events earlier in the day on Thursday, where Reid co-signed a letter with Pulte mandating that Freddie Mac employees will be required to return to the office five days a week beginning in May. FHFA also this week closed two of its departments, resulting in a workforce cut of about 10%, including in its Research and Statistics Division and its Division of Public Interest Examination (DPIE).
The move at FHFA was described as adding to a sense of upheaval at the regulator, the Politico report said.
“They come as the administration weighs privatizing the giant firms, a decision that could bring a windfall to private investors but that is opposed by many Democrats and others who fear that it could roil the housing finance market.”
This is a breaking news story. Check back for updates.
