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seismic shift is underway at Fannie Mae and Freddie Mac, as Director William Pulte's tenure has already claimed over 100 employees for alleged "unethical conduct," including facilitating fraud. This move follows a series of cuts aimed at eliminating waste, with Pulte touting $6.4 million in savings from axing climate change and diversity programs at Fannie Mae.

    Pulte's X posts have been unapologetic in their critique of what he sees as unnecessary spending, including a scathing assessment of Freddie Mac's $9 million DEI budget. "We're stripping away consulting contracts that waste money and other DEI nonsense," Pulte wrote, vowing to return the funds to more productive uses.

    The firings and cost-cutting measures are part of a broader effort to privatize the two government-sponsored enterprises (GSEs). This push has been underway for some time, with recent changes to their boards and now the elimination of certain programs. While Fannie Mae and Freddie Mac don't directly issue loans, they play a crucial role in backing financing and influencing loan offerings.

    Privatization could lead to higher mortgage rates in the short term, but proponents argue it would increase efficiency and reduce regulatory fees, ultimately driving down rates. Meanwhile, HUD is tackling its own set of challenges, including reducing improper payments, which Acting Inspector General Stephen Begg described as a "longstanding and significant problem."