Three Indian Congressmen led by Suhas Subramanyam have sought an explanation from mortgage giant Fannie Mae for mass firings of dozens of predominantly Indian American employees for alleged unethical conduct, including facilitating fraud.
Subramanyam last week sent a letter to William Pulte, Director of the Federal Housing Finance Agency, and Priscilla Almodovar, President and Chief Executive of Fannie Mae, demanding answers and evidence, according to a press release from his office. The letter is also signed by Indian American Congressmen Raja Krishnamoorthi and Shri Thanedar.
The fired Fannie Mae employees, most of whom are Indian American and live in Northern Virginia, have denied wrongdoing and have claimed Fannie Mae did not conduct any sort of investigation into the alleged behavior, according to the release.
READ: Donald Trump to privatize mortgage firms Fannie Mae and Freddie Mac (January 3, 2025)
“It has been brought to my attention that Fannie Mae has accused hundreds of my constituents in the Indian-American community of fraudulent behavior and fired them without conducting a full investigation or providing evidence,” said Subramanyam. “I have spoken with many of these employees in our community, and they deserve due process. Fannie Mae owes them, Congress, and the American people an explanation immediately.”
It has been reported that these employees were fired over contributions to certain Indian American organizations through Fannie Mae’s Matching Gift Program. According to Fannie Mae’s website, this program allows employees to “double the financial impact of their eligible donations through our Matching Gifts program up to a maximum of $5,000 annually.”
The groups many employees donated to were approved by Fannie Mae itself for inclusion in its gift-matching program.
In the letter, Subramanyam highlights the employees’ years of experience and exemplary performance reviews at Fannie Mae and notes that the individuals were fired without notice and are almost exclusively Indian Americans. Additionally, some of the employees who were fired have claimed that they have not even donated to the organizations in question.
Subramanyam said he is concerned that Fannie Mae has not fully investigated the alleged fraudulent behavior and that simply donating to Indian American organizations or belonging to the Indian American community may have been used as the sole rationale for firing these employees.
In their letter, the Congressmen demand answers from Fannie Mae on whether and how they had investigated this alleged fraud, if employees were given the opportunity to provide clarification or corrective action, if employees were provided evidence of specific violations they were alleged to have committed, if donations to specific charities were used as the basis for termination decisions, and, lastly, if any employees who donated to these organizations were cleared of wrongdoing as part of the investigations.
Fannie Mae announced the firing of over 100 employees in a joint statement with the U.S. Federal Housing Finance Agency (FHFA) on April 8.
“In President Trump’s housing market, there is no room for fraud, mortgage fraud, or any other deceitful act that can jeopardize the safety and soundness of the housing industry,” said William J. Pulte, Chairman of the Board of Directors of Fannie Mae.
“Since my swearing-in, we fired over 100 employees from Fannie Mae who we caught engaging in unethical conduct, including facilitating fraud, against our great company. Anyone who commits fraud against Fannie Mae does so against the American people.”
“I would like to thank Director Pulte for his empowering of Fannie Mae to root out unethical conduct, including anyone facilitating fraud. We hold our employees to the highest standards, and we will continue to do so,” said Priscilla Almodovar, President and Chief Executive Officer of Fannie Mae.
READ: Legal immigrants a boon to US Economy: Trump advisor (December 31, 2024)
Though neither Fannie Mae nor the FHFA specified the reasons behind the terminations, media reports have pointed to an alleged abuse of the agency’s employee matching grants program.
According to a Times of India report, approximately 700 employees have been laid off from Fannie Mae this year, with about 200 dismissed on “ethical grounds.” The report alleges that some staff collaborated with nonprofit organizations, including the Telugu Association of North America (TANA), to misuse the program.
Telangana Today, a regional Indian news outlet, reported that individuals tied to TANA and the American Telugu Association — including a regional vice president and the spouse of a former president — were among those terminated in connection with the alleged scheme.