Mortgage Daily Logo
mortgage news from industry experts

Fannie Layoffs

Fannie Layoffs

Restructuring job cuts this year

March 28, 2007

By COCO SALAZAR

photo of Coco Salazar
Fannie Mae will layoff hundreds of employees as part of a cost-cutting effort.

The secondary lender expects to reduce operating expenses by $200 million this year, according to a written statement by Fannie spokesman Brian Faith. Thereby, Fannie is reducing its number of contractors and will also be eliminating some full-time positions, as well as focus on other non-personnel expenses.

“While determinations are still being made as we undertake this restructuring, we anticipate that the company will have several hundred fewer full-time employees at the end of this year,” the statement said.

Because the company will strategically eliminate positions, Fannie spokeswoman Chrissie McHenry did not have a more precise number for how many will be laid off. She said there are currently about 6,400 employees throughout the company, which is headquartered in Washington, D.C., and has five regional offices and other local offices.

“Our objective is to bring costs in line following a period of significant increases in overall administrative expenses as the company completed its restatement and made critical investments in financial systems, risk management and internal controls,” Faith said in the statement.

Fannie has paid $400 million to the federal government and faces shareholder and other lawsuits relating to the accounting scandal that broke out after regulators began investigating the government-sponsored enterprise when it restated $1.1 billion of its stockholder equity in November 2003 for miscalculating mortgage commitments.


next story

back to current headlines

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION