Gallego, Colleagues Demand Hearing with Bill Putle Following Announced Cuts to Crucial FHFA Office of Inspector General

Banking Democrats call for public forum to demand answers from Pulte on documented abuses of power WASHINGTON – Today, Senator Ruben Gallego (D-AZ) joined Senators Catherine Cortez Masto (D-NV), Jack Reed (D-RI) , and their Democratic colleagues on the Banking, Housing, and Urban Affairs Committee, in sending a letter to Chair Tim Scott (R-SC) requesting a hearing with Federal Housing Finance Agency (FHFA) Director Bill Pulte. The Senators’ request follows various reported abuses of power by Pulte, including last week’s unprecedented move to cut the funding to the agency’s Office of the Inspector General (FHFA-OIG) by 60 percent and risk future operations. “We request you invite Director Pulte to testify before the Senate Banking Committee so our committee can fulfill its oversight functions and explore how his decisions are affecting FHFA’s ability to ensure Fannie Mae, Freddie Mac and the FHLBanks (collectively, “the government-sponsored enterprises,” or GSEs) operate in a safe and sound manner and provide a reliable source of liquidity and funding for housing finance and community investment. The hearing would provide Director Pulte the opportunity to explain his record,” the senators wrote. Bill Pulte’s proposed cuts to FHFA-OIG — which is tasked with investigating waste, fraud, and abuse at FHFA, Fannie Mae, Freddie Mac and the Federal Home Loan Banks — come while he remains under scrutiny for his abuses of power. Pulte is under investigation by the Government Accountability Office (GAO) for potentially misusing his federal authority and resources to publicly accuse prominent Democrats and President Donald Trump’s perceived political enemies of mortgage fraud. Pulte also faces questions for his apparent involvement in the President’s scheme to demolish the Kennedy Center and his brief tenure as Acting Director of National Intelligence. The senators also addressed his mismanagement of Fannie Mae and Freddie Mac, which back 70 percent of mortgages in the United States: “Since failing to respond to congressional inquiries on his activities, Director Pulte has fired more staff at Fannie Mae, including about a dozen high-ranking executives. These now-fired executives were responsible for multifamily loans, low-income housing tax credit investments, and finance, and also included regulatory and communications officials. Director Pulte has not publicly explained the reasoning behind these most recent terminations and how these firings will impact Fannie Mae’s ability to provide price stability across the mortgage market.” 70-80 percent of staff, including experienced law enforcement officers who serve as the primary watchdogs for Fannie Mae and Freddie Mac and keep the mortgage market stable, would be impacted by a layoff with Pulte’s cuts to the FHFA-OIG. These staff are tasked with investigating title and mortgage fraud, protecting mortgage lenders and home buyers from predatory practices, and ensuring a sound and secure mortgage and banking system. “We must fulfill our oversight responsibilities related to potential harm being done by Director Pulte to our nation’s housing finance market and in turn, to the supply and cost of housing,” the senators concluded. In addition to Senators Gallego, Cortez Masto, and Reed, the letter was signed by Senators Elizabeth Warren (D-MA), Mark Warner (D-VA), Chris Van Hollen (D-MD), Tina Smith (D-MN), Raphael Warnock (D-GA), Andy Kim (D-NJ), Lisa Blunt Rochester (D-DE), and Angela Alsobrooks (D-MD). Read the full letter HERE .