Dems ask FHFA watchdog to probe Pulte's moves

Lawmakers are asking the Federal Housing Finance Agency's watchdog to review Bill Pulte's many changes since becoming director of the regulator.

Senate Democrats on the Committee on Banking, Housing and Urban Affairs sent a letter Tuesday to the FHFA's Office of Inspector General, asking it to probe several moves. Those include the reshuffling of Fannie Mae and Freddie Mac's boards of directors, and the firing of over 100 Fannie Mae employees for alleged unethical conduct.

The office of FHFA IG Brian Tomney, a Biden appointee, will review the request, it confirmed Wednesday afternoon. Tomney is a rare holdover from the prior administration following President Trump's firing of numerous department IGs, including the Department of Housing and Urban Development's IG in January. 

The senators' letter was first reported by Semafor. 

It follows Dems' similar call regarding HUD, where the nonpartisan Government Accountability Office agreed earlier this month to probe that department's alleged job cuts to staff responsible for fair housing enforcement. 

This week's request asks the FHFA's OIG to review whether Pulte's moves have complied with the law and agency policies. Lawmakers claim Fannie Mae's entire audit committee was dismissed, and question the legality of Pulte naming himself chairman of both Fannie and Freddie boards. 

The letter also asks the OIG to review if the Department of Government Efficiency is operating at the regulator, following one of those task force members' brief stint on Fannie Mae's board. While DOGE has disclosed numerous cuts at HUD and the Consumer Financial Protection Bureau, it hasn't listed any actions at the FHFA. 

The FHFA's process in determining and carrying out layoffs was also unclear, lawmakers contested. The regulator last month reportedly placed 35 unionized FHFA employees on administrative leave, and a week ago announced the firing of an unspecified number of workers over an undisclosed scheme. 

Additionally, Pulte recently posted on X that the FHFA had slashed 25% of its workforce. 

"It is … essential for Congress to understand whether workforce reductions at the

FHFA comply with all relevant laws and agency procedures," wrote lawmakers. 

Unlike a similar inquiry in March to HUD Secretary Scott Turner, lawmakers did not state a deadline for a response. The correspondence was signed by 10 Democrats, led by Committee Ranking Member Sen. Elizabeth Warren, D-Mass.

The FHFA didn't immediately respond to a request for comment Wednesday morning. 

Pulte in frequent updates to X has been a cheerleader for the government-sponsored enterprises, explaining that the changes make the nation's housing market "more safe, sound and affordable."  He recently touted the FHFA's new mortgage fraud tip line, part of his effort to rid the regulator of fraud, waste and abuse.