A cadre of Democratic senators is requesting that the Office of Inspector General launch an inquiry into recent actions by the Federal Housing Finance Agency (FHFA), including Director Bill Pulte’s overhaul of the Fannie Mae and Freddie Mac boards and the recent firing of more than 100 Fannie employees for alleged “unethical conduct” and “facilitation of fraud.”
Additionally, the senators asked the government watchdog to investigate the legality of Pulte’s appointment of himself as chairman of the Fannie and Freddie boards. The FHFA, which he leads, is tasked with regulating the mortgage giants.
Ten senators, led by Andy Kim, D-N.J., and Elizabeth Warren, D-Mass., sent a four-page letter to Inspector General Brian Tomney on Tuesday outlining their concerns about the FHFA’s recent actions. Other signees included Senate Minority Leader Chuck Schumer, D-N.Y., and Cory Booker, D-N.J., who set a Senate record earlier this month with a 25-hour filibuster that aired concerns about the “overpriced housing market,” among many other topics.
The senators requested that the IG’s office obtain details about why the Fannie and Freddie board members were ousted. They also asked if the Elon Musk-led Department of Government Efficiency (DOGE) played a role in the board shakeups at the government-sponsored enterprises.
Citing the appointment to the Fannie Mae board and abrupt resignation of cybersecurity engineer Christopher Stanley — who has worked for two of Musk’s companies — the letter said Stanley’s appointment “raises key questions about DOGE’s role in day-to-day FHFA and enterprise activities.”
“What access, if any, have DOGE officials received to data housed at FHFA, Fannie Mae or Freddie Mac?” the letter asked.
The senators also brought up the April 8 announcement that Fannie Mae had fired more than 100 employees for alleged unethical conduct, asking if due process was followed prior to the terminations. They also asked for more details on the March 20 report from The New York Times that the FHFA had placed 35 of its own unionized employees on administrative leave.
Regarding Pulte’s role as chairman of the Fannie and Freddie boards, the senators asked if the appointments complied with a U.S. Code statute which states that the director of the FHFA may not “hold any office, position or employment in any regulated entity or entity-affiliated party.”
“What legal analysis, if any, did FHFA conduct in advance of appointing Mr. Pulte to the boards?” the senators asked.
