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A coalition of nine Democratic U.S. senators have sent a pair of formal letters to Federal Housing Finance Agency Director Bill Pulte over concerns that his recent actions to replace key leaders at the FHFA and the government-sponsored enterprises (GSEs) “do not appear to be consistent,” with federal laws or regulations.
On March 31, a coalition of eight Democratic senators led by Lisa Blunt Rochester (Del.) requested that Pulte provide “clarity regarding your plans with respect to the FHFA, the nation’s housing finance system, and the conservatorships of Fannie Mae and Freddie Mac.”
That same day, a second letter co-signed by six Democratic senators and led by Sen. Jack Reed (R.I.), requested additional information about what they characterized as “turmoil” inside the GSEs stemming from Pulte’s recent actions. They said that Pulte’s decisions could be construed as prioritizing Pulte’s and the Trump administration’s business and political allies.
“The individuals you have installed as directors do not appear to have the requisite experience to maintain the safe and sound operation of these companies. Rather, many appear to have been selected based on the basis of their personal, political, and business connections to you or members of the Trump administration,” the second letter stated.
The full coalition of signatories on the letters also include Senate Banking Committee Ranking Member Elizabeth Warren (Mass.), Senate Minority Leader Chuck Schumer (N.Y.), Catherine Cortez Masto (Nev.), Andy Kim (N.J.), Tina Smith (Minn.), Chris Van Hollen (Md.), and Ron Wyden (Ore.).
‘Sweeping changes’
Rochester’s letter includes a series of questions about Pulte’s documented moves at the GSEs. It requests clarity on why he altered the composition of their boards; questions whether appointing himself as chair is consistent with federal law; and inquires about U.S. DOGE Service access to FHFA and GSE data.
The letter also seeks more information on the number of FHFA employees placed on administrative leave; public engagement plans should the GSEs’ conservatorship status change, and whether or not such changes would be made administratively or legislatively; the impact on Fannie and Freddie’s credit ratings if they are removed from conservatorship; and a commitment from Pulte that a release from conservatorship will not raise housing prices.
Reed’s letter also pointed out that Pulte’s actions have been taken with minimal communications to the public, the media and Congress.
“Again, you made these sweeping changes without any explanation or justification just one week into your tenure as FHFA Director,” Reed’s letter stated. “This indicates either that you were not forthright with the Banking Committee about your plans during the confirmation process or that you have entered this job without the capacity to follow the statutes and regulations governing the operation of Fannie and Freddie.”
Social media reliance
During his Senate confirmation hearing in February, Pulte told lawmakers that he looked forward to working with them to address the issues they felt were important. But Reed is accusing Pulte of actions that would garner a higher level of scrutiny if they occurred in the private sector.
“If even one of these violations had occurred at an ordinary publicly traded company, shareholders would be asking serious questions about the management’s competence,” the letter stated. “To restore any confidence, FHFA’s lack of compliance must [be] corrected immediately.”
Since assuming office last month, FHFA has not issued any announcements through traditional media channels regarding a series of major policy changes. Pulte has elected to announce these moves with photos of signed letters and orders that have been posted to his social media account on X, where he has 3 million followers.
These photos typically do not include any additional comments from the director, nor have there been any accompanying press releases on such announcements to date. The changes to the GSEs’ boards and the FHFA’s leadership positions were gleaned through Securities and Exchange Commission (SEC) filings and investigative reporting.
Most recently, Pulte published a photo of an order on March 28. It closes a directive for FHFA to collaborate with other agencies on industry best practices for financing multifamily properties that include equipment for solar power.
