Fannie Mae in early November cut 160 full-time workers such as a handful of vice presidents, including one with almost 30 years of service.
Sources said some vice presidents were spared, but were told by the GSE that they might want to consider looking elsewhere for work come the new year.
A GSE spokeswoman confirmed to ASR sister publication National Mortgage News that the cuts were made. “We have taken a series of actions this year to reduce non personnel expenses and several weeks ago we conducted a reduction in force that impacted approximately 160 people,” she said. “These actions were difficult but necessary as we work to deliver greater value to the taxpayers and the industry.”
One vendor who does business with Fannie said some of the cuts didn't make sense. “Some of those who were let go were working on loan modifications and other special projects,” he said. “I thought these were important initiatives at Fannie.”
Both Fannie and Freddie Mac continue to lose money. They have been wards of the government since September 2008.