ESG team at Fannie Mae has been terminated: sources

According to multiple sources speaking with HousingWire, Fannie Mae has reportedly laid off its entire environmental, social, and governance (ESG) team. The cuts allegedly included Laurel Davis, the senior vice president and head of the mission and impact department, as well as all other members of the ESG team. Sources mentioned that the staff members were placed on administrative leave. HousingWire attempted to reach out to representatives from Fannie Mae and the Federal Housing Finance Agency (FHFA) but did not receive an immediate response.

It is estimated that over 30 members of the ESG team, which is part of the broader Mission Team along with Duty to Serve and Goals, were let go on Friday. Sources also claimed that Danny Gardner, the SVP of Mission and Community Engagement at Freddie Mac, was also laid off earlier this month. These layoffs come after the Trump administration eliminated initiatives focusing on diversity, equity, inclusion, and climate-related mandates. FHFA Director Bill Pulte has led the efforts to remove such initiatives from the agency and the government-sponsored enterprises (GSEs).

After recent changes in leadership at both GSEs and the removal of Freddie Mac’s head Diana Reid, Pulte stated on social media that there were no further executive leadership changes expected at Fannie Mae and Freddie Mac. He emphasized a shift towards growth, affordability in housing, combating mortgage fraud, and offering career opportunities. Pulte encouraged feedback from users on improving the GSEs’ operations.

Earlier this month, Pulte reversed two policy orders related to diversity, equity, and inclusion, and expressed his plans for reforming the GSEs. He highlighted the need for efficiency and financial responsibility in running Fannie Mae and Freddie Mac to better serve the American people. Pulte also rolled back climate initiatives introduced during the Biden administration and mandated the companies to return to office work.