Not from what I know, I beleive that she was a Christian, Catholic at the time, though I do beleive she was born into the Jewish faith.
Slight problem there Bopa , the hungarian government changed the early version of laws on jewishness from one of adherence to a religion to one of race so if she was born Jewish or her parents or grandparents were Jewish she remained Jewish and your grandfather was being very very naughty cavorting with "subhumans" and should have been imprisoned and his son most certainly should have been barred from the civil service too as well as many other forms of employment .

BTW I do hope that when you say he held his position for the next government I do hope you don't mean he carried on under Sztojay , as while Horthy and his government were very very bad the next government were completely evil .