The FHFA director suggested the decision on whether to release Fannie and Freddie from conservatorship depends mostly on President Trump and Treasury Secretary Scott Bessent.
Recent comments by the FHFA director suggest the Trump administration has no immediate plans to release Fannie and Freddie from conservatorship. Rather, FHFA will continue to focus on fraud and abuse at the enterprises.
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.