Fannie Mae Layoffs Reportedly Target Employees Abusing Matching Grants Program

Fannie Mae has reportedly laid off 700 employees, including 200 Telugu speakers, according to the Times of India and other news outlets.

While some layoffs were expected as Fannie Mae reorganizes under the Trump administration, many of the 200 Telegu speakers were let go on “ethical grounds.”

Local news sources reviewed by the Times of India said that the layoffs targeted employees who misused the GSE’s matching grants program. Some of the laid-off employees are alleged to have colluded with non-profit organizations to receive extra funds.

One of the affected employees was a regional VP for the Telugu Association of North America. Another is the spouse of a former American Telugu Association president.

The Telugu language is spoken in the Indian states of Andhra Pradesh and Telangana.

This isn’t the first accusation directed at Telugu organizations. Apple fired 100 employees over similar allegations. A California court issued a subpoena to TANA in December 2024 requesting records of its financial transactions from 2019 to 2024.

The Trump administration has promised to punish bad actors abusing federal money. Fannie Mae has been in conservatorship since the 2008 financial crisis.

But Republicans are pushing for Fannie Mae and Freddie Mac to be released from conservatorship,

“I, along with a good number of people, believe the GSEs will be released from conservatorship,” Michael Calhoun, president of the Center for Responsible Lending, said at last year’s AEI Housing Center conference. “The market is betting pretty heavily that will happen.”