Following Warren and Senate Democrats' Urging, Independent Watchdog Launches Investigation Into FHFA Director Pulte's Potential Abuses of Power in Mortgage Fraud Cases Against[...]

Following Warren and Senate Democrats' Urging, Independent Watchdog Launches Investigation Into FHFA Director Pulte's Potential Abuses of Power in Mortgage Fraud Cases Against Democratic Officials

GAO agrees to investigate Director Pulte's targeting of prominent Democrats and President Trump's perceived political enemies.

Text of GAO Acceptance Letter (PDF)

Washington, D.C. - This week, the Government Accountability Office (GAO) agreed to launch an investigation into whether Federal Housing Finance Agency (FHFA) Director William Pulte, Chair of both Fannie Mae and Freddie Mac's Boards, and other FHFA employees potentially misused federal authority and resources to publicly accuse prominent Democrats and President Donald Trump's perceived political enemies of mortgage fraud.

The investigation comes in response to a letter from U.S. Senators Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, and Senators Sheldon Whitehouse (D-RI), Jack Reed (D-RI), Chris Van Hollen (D-MD), Tina Smith (D-MN), Lisa Blunt Rochester (D-DE), and Catherine Cortez Masto (D-NV) calling for a GAO investigation into any changes that have been made to mortgage fraud investigation standards at the FHFA under Director Pulte and whether controls are in place and being followed in cases of alleged mortgage fraud.

Ranking Member Elizabeth Warren released the following statement on the investigation: "Instead of bringing down sky-high housing costs, Bill Pulte is weaponizing his role to take on Trump's perceived political enemies. He must be held accountable for this abuse of power."

Ranking Member Warren and fellow Senate Democrats previously called on FHFA to release information related to Pulte's investigations into alleged mortgage fraud, to which FHFA failed to respond.

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