Fannie Mae, Freddie Mac and their oversight agency have responded to a couple of broader federal developments this week, including a falling out with a government vendor and a partial government shutdown.

The two government-sponsored enterprises will sever ties with artificial intelligence firm Anthropic following President Trump's dispute with it, Bill Pulte, the director of the GSEs oversight agency, said in one of the social media posts on X he often uses for announcements.

Separately, Fannie and Freddie also announced that they may extend some leeway to people affected by an impasse in budget negotiations at the Department of Homeland Security.

Anthropic ban's origins and implications

The ban on Anthropic stems from two boundaries the company set on use for its artificial intelligence technology that the federal government has challenged: mass surveillance of Americans and fully autonomous weapons.

Anthropic said it balked in its work with the Department of War because a contract for AI strategy calls for them to agree to any "lawful use" of technology without restrictions. 

The company said in a statement last week that when it comes to mass surveillance, "the law has not yet caught up with the rapidly growing capabilities of AI," while in the case of autonomous weapons "frontier AI systems are simply not reliable enough" not to be a risk to US lives.

In a social media post last week issued just prior to US involvement in a new Middle East conflict, President Trump called for an end to work with the company, claiming the refusal as undermining his authority, representing political opposition and endangering troops.

"There will be a six month phase-out period for agencies like the Department of War who are using Anthropic's products, at various levels," Trump's social media post said, calling for the company to accommodate this or face penalties.

"Should the Department choose to offboard Anthropic, we will work to enable a smooth transition to another provider," it said in response.

Pulte did not immediately comment on whether the ban affects industry partners or provide details on the extent of any Anthropic use at Fannie, Freddie or his agency, which he calls US Federal Housing. USFH has historically been called the Federal Housing Finance Agency.

How the enterprises use AI to access information in fraud detection allegedly for political purposes is among numerous Freedom of Information Act requests the FHFA reported it and its inspector general have been processing at a cost of over $700 million in the past fiscal year.

One potential challenge banks have identified in working with the limited number of feuding AI companies with some common ties has been that they face Treasury directives around reducing concentration risk. The Treasury Department also is severing ties with Anthropic.

How Fannie and Freddie can help DHS workers

Meanwhile, to respond to the partial government shutdown that began last month and persists due to the budget impasse, Fannie Mae and Freddie Mac have directed mortgage companies to offer some relief to people affected by payments suspended because of it.

The temporary leeway, which will end when the shutdown does, extends to meeting timelines typically necessary for mortgages. Deadlines where some wiggle room is now offered include those for employment verifications, paystubs and financial reserves in originations.

Preexisting borrowers facing payment difficulties due to the partial government shutdown  may be able to get some relief on deadlines for their standard or loss mitigation payment obligations through forbearance plans that allow them to suspend payments for a limited period.