Fannie Mae Hit With Hundreds of Layoffs

January 23, 2009 No Comments »

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Mortgage financier Fannie Mae is reportedly set to lay off “several hundred employees” beginning today at its Washington D.C. headquarters, according to the Washington Post.

The layoffs will hit a number of divisions at the home lending giant, including the company’s single-family unit, as well as its administration, technology, and communications departments.

To offset the job losses, Fannie Mae plans to hire an equal number of employees at its operations center in Dallas, Texas that focuses on loss mitigation and foreclosure prevention.

“Fannie Mae is taking steps to realign the company’s organization, personnel and resources to focus on our most critical priorities, which include preventing foreclosures to help keep people in their homes and aiding in the recovery,” said Brian Faith, a company spokesman, in a statement.

He said the number of employees at Fannie Mae should remain unchanged in 2009 compared to last year, with just over 5,500.

Last week, Fannie Mae announced a so-called National Real Estate Owned (REO) Rental Policy to protect renters living in foreclosed properties owned by the company.

Fannie will essentially work with property management companies to offer renters new leases as a way to mitigate losses as it works to unload unwanted inventory.

In early September, Treasury announced the takeover of both Fannie Mae and Freddie Mac, while noting that it would reduce the pair’s mortgage market share to more modest levels over the next several years.

(photo: thompski)

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