Federal National Mortgage Association, also known as Fannie Mae, saw another wave of senior-level departures that could represent continued restructuring ahead of a potential capital markets transaction, Wedbush said in a Monday note.

Wedbush noted reports that 10 to 12 senior executives are leaving, with Bloomberg describing the departures as involuntary and citing AI advancements as a factor in some role eliminations, while HousingWire said the exits were concentrated in capital markets, regulatory affairs and multifamily, with several executives having more than a decade of tenure.

Changes could be viewed positively as further clearing of the decks ahead of an eventual IPO, particularly as FHFA Director Bill Pulte has refocused on the agency and government-sponsored enterprises following the confirmation of a permanent director of national intelligence, the note said.

Wedbush analyst Michael Piccolo said the departures pose governance and execution risks amid the third round of senior-level turnover since Pulte took over, with the potential loss of institutional knowledge warranting monitoring, though new talent could be needed ahead of an IPO.

Wedbush maintained its neutral rating on the stock, with a price target of $8.

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