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Freddie Mac CEO Fired Amid FHFA Shake-Up: What It Means for GSEs Going Forward

Freddie Mac CEO Fired Amid FHFA Shake-Up: What It Means for GSEs Going Forward March 22, 2025

This week brought unexpected and significant changes within the housing finance space. On Thursday morning, Freddie Mac filed an 8-K with the SEC confirming that FHFA Director William Pulte had removed CEO Diana Reid. Reid, who had only served in the role since September, was replaced on an interim basis by Mike Hutchins, the company’s President and a longtime Freddie Mac executive.

The move was not isolated. It’s part of a broader shake-up at the Federal Housing Finance Agency (“FHFA“), with Chief Operating Officer Gina Cross and Human Resources Director Monica Matthews also placed on leave. According to sources within the agency, FHFA is planning to cut approximately 10% of its workforce and bring on roughly 20 political appointees to fill key roles.

Pulte also issued a return-to-office mandate to FHFA employees this week, requiring in-person work by May. A similar message reportedly went out to Freddie Mac staff, and following a visit to Fannie Mae’s headquarters earlier this week (where there were reportedly “virtually no staff” present), many expect the same mandate will soon apply there as well.

1.So… What’s Going On?

The moves have blindsided most of Washington and sparked a flurry of speculation. Is this part of a broader cost-cutting push at FHFA and the GSEs? Is Pulte laying the groundwork to release Fannie and Freddie from conservatorship?

At this point, no one outside of FHFA leadership knows for sure.

What we do know is that Director Pulte has expressed a focus on operational efficiency and fiscal prudence. Earlier this week, he tweeted—without context—that Fannie Mae and Freddie Mac collectively employ over 15,000 people. And in two tweets last weekend, he praised the GSEs as “great American Icons” and promised “tremendous opportunities for people who perform” at Fannie and Freddie, suggesting a renewed focus on performance and accountability.

During his confirmation hearing, however, Pulte downplayed any rush to exit conservatorship, stating:

“While conservatorship should not be indefinite, any exit from conservatorship must be carefully planned to ensure the safety and soundness of the housing market without upward pressure on mortgage rates.”

2.What Comes Next?

Given the timing and broader political landscape, it’s unlikely we’ll see any meaningful action on GSE reform in 2025. The administration appears more focused on priorities like tax reform, and any move to exit conservatorship would almost certainly require coordination with the White House, Treasury, and OMB—none of whom have publicly signaled that GSE reform is on the immediate agenda.

For now, expect more operational shifts, tighter oversight, and continued headlines out of FHFA. Whether these changes ultimately pave the way for long-term reform—or are simply about streamlining agency operations—remains to be seen.

We’ll continue tracking developments and will keep you informed.

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