ESG team at Fannie Mae has been terminated: sources

The environmental, social, and governance (ESG) team at Fannie Mae has reportedly been dismissed in its entirety, according to multiple sources who spoke with HousingWire.

Laurel Davis, who served as a senior vice president and head of the company’s mission and impact, was reportedly included in the cuts, alongside the rest of the ESG team’s staff, the sources said.

One source said the staffers were officially on administrative leave.

HousingWire reached out to representatives at Fannie Mae and the Federal Housing Finance Agency (FHFA), but did not receive an immediate reply.

Sources estimated that there were more than 30 members of the ESG team — which is part of the broader Mission Team, along side Duty to Serve and Goals. They were let go on Friday, per sources.

Danny Gardner, the SVP of Mission and Community Engagement at Freddie Mac, was also let go earlier this month, per sources.

The cuts follow the Trump administration’s dismantling of initiatives that include diversity, equity and inclusion (DEI) provisions as well as climate-related mandates. FHFA Director Bill Pulte has spearheaded the administration’s mission to remove any DEI-based initiatives from his agency and the GSEs themselves.

After turning over the boards at both GSEs and terminating Freddie Mac head Diana Reid, Pulte earlier this week had indicated on social media that he did not “foresee any more executive leadership changes” at Fannie Mae and Freddie Mac.

“Our focus will now turn to growth, making homes more affordable, rooting out mortgage fraud, & providing great career opportunity [sic] to those who make Fannie & Freddie great American Icons, again!” he wrote on X.

Pulte also solicited comments from X users about feedback for improving the function of the GSEs, saying “are actively working on new programs and new products at Fannie Mae and Freddie Mac. If you have ideas on what to do differently, please reach out!”

Earlier this month, Pulte rescinded two policy orders with a focus on DEI before offering public-facing comment on his approach to reforming the GSEs.

“For years, Fannie Mae and Freddie Mac have been filled with bloat, excessive spending, and worse — that ends now,” Pulte said in an X post at that time. “These two businesses need to be run as businesses that serve the American people. We are making positive changes that make our housing market more safe, sound, and affordable!”

Pulte, who chairs the boards of both Fannie Mae and Freddie Mac, has also rolled back various climate initiatives that were launched during the Biden presidency. He has also mandated a return to the office for both companies.