Democrats on the Senate Banking Committee asked the FHFA OIG to determine whether the agency’s director has broken any laws during his tumultuous first few weeks in office.
The FHFA director believes mortgage fraud is rampant at Fannie and Freddie. That includes allegations that New York Attorney General Letitia James, a nemesis of President Trump, fraudulently obtained GSE-backed loans. James denies the allegations.
FHFA’s ban on the GSEs’ use of special purpose credit programs doesn’t appear to apply to HomeReady or Home Possible, neither of which has a racial or ethnic requirement.
FHFA Director Pulte said fired Fannie employees were abusing their remote work status and, in some instances, fraudulently misusing the company’s matching gift program.
FHFA Director Bill Pulte gets a glimpse of what congressional oversight looks like as leading Democrats criticize him for actions in his first weeks in office.
FHFA under the leadership of Bill Pulte has rescinded, deleted or closed at least eight agency directives without providing notice on the agency’s website or announcing the changes in a press release.