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Democrats launch inquiry over Indian American layoffs at Fannie Mae
The terminated employees—many with years of service and strong performance reviews—were predominantly of Telugu origin.
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Malvika Choudhary - Fri, 11, Apr 2025
- 13:32 EDT
- 393
Shri Thanedar, Suhas Subramanyam and Raja Krishnamoorthi / File Photo
Indian American lawmakers launched an official inquiry into the recent mass termination of dozens of Indian American employees at US federal mortgage giant, Fannie Mae.
Congressman Suhas Subramanyam (VA-10), joined by Congressmen Raja Krishnamoorthi (IL-08) and Shri Thanedar (MI-13), sent a letter to Federal Housing Finance Agency Director William Pulte and Fannie Mae CEO Priscilla Almodovar demanding answers on the dismissals, which reportedly affected long-serving employees with no prior disciplinary records.
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“It has been brought to my attention that Fannie Mae has accused hundreds of my constituents in the Indian-American community of fraudulent behavior and fired them without conducting a full investigation or providing evidence,” Subramanyam said. “I have spoken with many of these employees in our community, and they deserve due process. Fannie Mae owes them, Congress, and the American people an explanation immediately.”
They were abruptly fired last week over allegations of fraud and unethical conduct, in relation to the Fannie Mae’s Matching Gift Program, which allows employees to double charitable contributions—up to $5,000 annually—by donating to pre-approved nonprofits.
According to the employees, donations were made to Indian American organizations officially approved by Fannie Mae. Some terminated staff say they never participated in the program at all, yet were still dismissed.
The fired employees also claim that they were neither notified in advance nor given an opportunity to respond or review the evidence against them.
In the letter, the lawmakers ask whether any investigation preceded the terminations and whether employees were interviewed, given a chance to clarify their actions, or provided with evidence of alleged violations. They also seek clarity on whether the Matching Gift Program was the sole basis for the firings and if any employees or organizations were cleared of wrongdoing.
“We are concerned that participation in the Matching Gift Program or donations to specific Indian American organizations may have been used as a pretext to make indiscriminate cuts to Fannie Mae’s workforce and to tarnish employees’ reputations with allegations of fraud without an investigation,” the letter reads.
The lawmakers have requested a written response from Fannie Mae and the FHFA by April 14.
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